Auditors deliver clean opinion on City of Enid FY2023–24 audit; single audit programs clean, one minor uncorrected misstatement noted

Erin (city finance director) and Joel Clauser, audit partner at Fors Bazaars, presented the City of Enid’s fiscal year 2023–24 audit report and answered commissioners’ questions.

Joel told the commission the audit concluded with a clean opinion: “Opinion wise, great news. Cleaned, unmodified opinions,” and reported no material weaknesses or significant deficiencies. He said the audit team spent several hundred hours reviewing records and described the report as one of the “cleanest and quickest” audits they have conducted there.

Why it matters: A clean, unmodified opinion means the auditors believe the financial statements present fairly, in all material respects, the city’s financial position. Clean single-audit results on federal programs reduce the risk of federal repayment or compliance findings for the reviewed programs.

Key findings and details

- Audit opinion: Unmodified (clean) opinions on the city’s financial statements; no material weaknesses or significant deficiencies reported.

- Single-audit: The auditors performed required testing of federal programs for this year; the programs audited included Community Development Block Grant (CDBG) funds and the airport DCIP joint hangar project. No compliance exceptions were reported.

- Pension and GASB matters: The presentation included discussion of net pension liabilities and GASB reporting impacts. The police pension was reported as roughly 101% funded and the fire pension at approximately 70.8% funded; the city’s own employee plan was about 85.6% funded. The auditors and staff discussed legislative changes that will increase required employer funding rates for police pensions and noted those budget impacts will appear in the FY2025 budget process.

- Uncorrected misstatements: Counsel and auditors reported one uncorrected misstatement totaling about $44,000 in a single minor fund. Joel characterized the amount as well below materiality and not affecting the audit opinion.

Discussion and next steps

Commissioners asked about the misstatement, pension funding impacts and single-audit coverage. Erin said she will present more operational revenue/expense analysis at a future meeting to clarify year-over-year operational drivers, and the commission requested the audit packet be included at the regular meeting for formal receipt.

Ending

Commissioners thanked finance staff and the audit team for the timely report; no formal action on the audit acceptance was recorded in the study session transcript.