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Auditors give Portsmouth an unmodified opinion on FY24 financial statements; no material control weaknesses found
Summary
CliftonLarsonAllen reported an unmodified (clean) opinion on Portsmouth’s FY24 financial statements, found no material internal control weaknesses, and noted management-letter IT recommendations for outdated operating systems.
City auditors Matthew Hunt and Phil Long of CliftonLarsonAllen told the Portsmouth City Council Tuesday that the FY24 financial statement audit resulted in an unmodified opinion — commonly called a “clean” audit — and that auditors found no material misstatements, no reportable internal control material weaknesses and no noncompliance with laws and regulations affecting the financials.
Hunt summarized key fund results for FY24, noting the general fund experienced a net decrease in fund balance while the unassigned fund balance and the ratio of unassigned balance to budget remained consistent with the council’s targets. Phil Long reviewed long‑term liabilities, pointing out small increases in long‑term debt and stable pension and OPEB liabilities compared with the prior year. The Water and Sewer enterprise funds ended with strong net positions: the water fund’s ending net position was cited at about $64,000,000 and the sewer fund at about $84,800,000.
Auditors described a management‑letter communication arising from IT audit procedures. The items noted were not material weaknesses; rather, auditors recommended mitigation steps after identifying several older, outdated operating systems still in use. Auditors said prior‑year management‑letter comments had been resolved and that management described a plan to address the IT issues going forward.
Councilors asked clarifying questions about the components of the OPEB liability (other post‑employment benefits) and about whether planned financial software changes would address IT recommendations. Auditors said the OPEB balance largely reflects grandfathered sick‑leave termination provisions and that some IT issues related to workstation operating systems are separate from an enterprise financial‑software implementation.
Why it matters: An unmodified opinion gives the council and the public assurance that audited FY24 financial statements fairly present the city’s financial position. Management‑letter IT recommendations, while not immediate control failures, outline remediation steps to reduce operational and security risk.
What’s next: Management responses and the audited financial statements will be made available on the city’s website; staff indicated the FY23 management‑letter items were resolved and that FY24 materials will be posted.
