Auditors give Newark an unmodified opinion on FY2024 annual comprehensive financial report

City of Newark finance officials and independent auditors reported Monday that the city’s fiscal year 2024 Annual Comprehensive Financial Report (ACFR) received an unmodified (clean) audit opinion.

"I'm happy to report, that you received the unmodified opinion," said Beau Early of CLA, the city’s independent auditors, as he presented audit findings to council. Finance Director Jill Hollander told council the ACFR was prepared by the finance department and audited by CLA as required under city code.

Key points

- Opinion: CLA issued an unmodified opinion on the FY2024 financial statements, the highest level of assurance an auditor can give.

- Internal controls and findings: The auditors reported no material weaknesses and no disagreements over accounting or reporting matters. Auditors noted management provided timely adjustments and representations during the audit.

- Single audit: CLA reported the single audit (federal awards audit) is in process and expected to be issued well before the federal deadline; auditors reported no current findings.

- Accounting standards: Management implemented GASB 101 (compensated absences) in this year’s statements; auditors reviewed the related estimates for self‑insurance and compensated absences and said management’s judgments were reasonable.

Why it matters: An unmodified opinion indicates the audited financial statements fairly present the city’s financial position and results of operations. Auditors also noted the finance staff closed the books and met the June 30 issuance deadline despite staffing transitions and a new accounting standard implementation.

Council Q&A: Council members asked procedural questions about audit grading and operations. The auditor explained that while the firm cannot