Auditors give Milwaukee County unmodified opinion; IT control detail moved to closed session

Baker Tilly gave Milwaukee County an unmodified opinion on the countywide financial statements and told the County Board's Committee on Audit the 2024 audit process went smoothly, with no new material weaknesses identified. The committee voted 6-0 to go into closed session to receive a confidential update on an information-technology internal control recommendation tied to the audit.

The unmodified opinion, described by Paul France of Baker Tilly as a "clean bill of health," means the auditors concluded the financial statements were free of material misstatement and that necessary disclosures and government accounting principles were applied consistently. Jennifer Folliard, the Comptroller's Director of Audits, told the committee Baker Tilly holds the countywide audit contract and has a subcontract with Coleman and Williams for part of the work. Baker Tilly said the single audit will be presented separately during the December meeting cycle and that, so far, nothing of concern has arisen that would change the conclusions in the countywide audit packet.

The committee agreed to move discussion of an information-technology related recommendation into closed session to avoid public disclosure of potential system vulnerabilities. Folliard said the county's IT findings are normally included in the management letter but for the past several years IT items have been pulled from the public report and discussed in closed session to avoid revealing potential vulnerabilities. The committee then voted to adjourn into closed session under Wisconsin statutes governing closed meetings; the motion passed on a recorded vote of 6-0. The committee later reconvened in open session by motion, also passed 6-0.

During the open discussion, Baker Tilly praised the comptroller's office for improvements since last year, when auditors had identified a material weakness in financial reporting structure. "Those weaknesses and concerns that we noted were significantly improved," France said, noting the office developed and executed a remediation plan. Supervisor Alexander, who said she has an accounting background, asked how to summarize the audit for constituents; France advised emphasizing that management is transparent with the governing body and that an external audit found no material-level conclusions needing further immediate action.

No formal committee action was taken on the countywide audit item itself (the item was informational), but the committee recorded and passed the motions to enter and exit closed session.