Milwaukie earns clean audit; Moss Adams notes one budget overrun and minor adjustments

Moss Adams presented the City of Milwaukie’s annual financial audit to the City Council and reported an unmodified opinion on the city’s financial statements, meaning the auditor found the statements to be presented fairly under U.S. generally accepted accounting principles. Ashley Austin, the engagement reviewer from Moss Adams, told council the audit identified no material weaknesses, no reportable fraud and no disagreements with management.

The audit team performed standard procedures: risk assessment, testing of internal controls, verification of account balances with third parties, substantive testing of transactions and compliance testing under Oregon Minimum Audit Standards. Moss Adams noted three minor proposed audit adjustments; management chose not to record them, and the matters were communicated in the rep letter. The audit also identified one compliance/financial reporting item: a general‑fund IT budget over‑expenditure of about $35,000 related to a change in accounting for subscription-based arrangements that requires booking the full subscription amount at inception.

Moss Adams said fieldwork took place in November and December and the audit was completed in advance of the Dec. 31 deadline. Team members named during the presentation included Amanda McCleary Moore (concurring review partner), Kelly Jones (senior manager) and others on the Moss Adams engagement team. The city’s finance staff — Michael (finance director), Matt Deeds (assistant finance director) and Judy Serio — were credited for preparing schedules and materials that facilitated a timely audit.

Councilors asked for details about the audit adjustments and the $35,000 IT overrun; the auditoressentially explained that the IT item resulted from new accounting guidance on subscription arrangements requiring multi-year subscription commitments to be recognized differently. The other proposed adjustments related to invoice cutoffs and a property-tax revenue recognition timing item.

Moss Adams also reviewed pension and OPEB‑related accounting (deferred inflows and outflows) and confirmed they tied actuarial allocations to the Oregon PERS reports. The audit team recommended several best-practice items verbally but identified no significant control deficiencies.

Ending: Council and staff praised the audit team and finance staff for completing the first-year engagement smoothly; staff said they will continue implementing best-practice recommendations and include audit follow-ups in upcoming finance reporting.