IDB ratifies management representation letter after audit shows unmodified opinion for FY2024

The City of Chattanooga Industrial Development Board voted to ratify a management representation letter for Henderson, Hutcherson & McCullough, PLLC after the firm presented its fiscal year 2024 audit and issued an unmodified opinion.

Brock Oliver, partner at HHM CPA, presented the audit findings and said the firm provided an unmodified opinion — the highest level of assurance — and reported no material weaknesses or significant deficiencies in internal control. Audit manager Garrett Williams said auditors found no awareness of fraud or illegal acts and noted a prior-period adjustment that was not material to the financial statements.

Oliver and Williams reviewed highlights: cash increased year over year largely because of timing differences in receipts and accruals; liabilities increased mainly from accrual timing; and leased assets rose by about $50 million, which auditors said aligned with activity related to a Volkswagen expansion project.

Following the presentation, the board considered a resolution to ratify the management representation letter for the auditors for the year ending June 30, 2024. A motion to approve was made and seconded; the board voted in the affirmative and the chair announced, “Item 6 passes.”

Garrett Williams told the board there were no uncorrected misstatements and no adjustments made by auditors during the audit. Oliver explained the audit focused on internal controls, compliance with GASB/GAP standards, and revenue recognition for state grants and contributions. The auditors also reviewed management’s estimates and found no significant changes during the fiscal year.

The vote authorizes execution of the management representation letter to HHM and completes the audit administrative requirement for the fiscal year.