Elizabethtown receives clean audit opinion for fiscal year; city revenues up
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Summary
External auditors RFH PLLC presented a draft audit with an unmodified (clean) opinion, reporting $63,804,000 in governmental fund revenues, $59,022,000 in expenditures and a $4,223,000 positive net change in fund balance; enterprise funds for gas and sewer showed combined positive change of $997,492.
Heather Cochran, partner with RFH PLLC, told the Elizabethtown City Council on Dec. 16 that the firm’s first-year audit of the city would issue an unmodified, or "clean," opinion on the financial statements.
Cochran said the clean opinion appears on page 1 of the draft financial statements and that the required secondary report on internal control and compliance showed no material weaknesses or instances of noncompliance. "That's as good as it gets," Cochran said, summarizing the auditors' findings.
The draft financial statements show total governmental fund revenues of $63,804,000 and expenditures of $59,022,000, producing a net increase in governmental fund balance of $4,223,000 for the year, Cochran said. She also noted the city’s enterprise activities — the gas and sewer funds — reported a combined positive change in net position of $997,492.
Cochran said the audit team was waiting for a small number of outstanding items related to tourism reporting before issuing a final report but did not expect significant changes to the numbers in the draft. Jordan Uren, RFH manager, assisted in distributing draft reports to council members.
Mayor and council members thanked the auditors and staff for their work during the transition to a new audit firm. No formal vote was recorded on acceptance of the draft during the presentation; council members were told they would receive the final report once the remaining items were completed.
The auditors noted the report includes extensive notes on debt, deposits and other financial details. Cochran recommended reviewing those notes for additional context about long-term liabilities and other disclosures.
The council did not raise substantive questions about the numbers during the presentation. Cochran said the firm found no findings related to internal control or compliance to report in the secondary audit letter.
The final audit will be provided to the council once the tourism-related items are complete and the auditors finalize the letter on their letterhead.