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Board accepts FY 2023–24 audit: unmodified opinion issued; two findings noted; city awards next-year audit contract
Summary
Independent auditors issued a clean (unmodified) opinion on the City of Spring Hill’s FY 2023–24 financial statements and reported two findings related to late trial-balance adjustments and missed grant reporting deadlines. The board accepted the audit and later awarded the FY 2024–25 audit to CliftonLarsonAllen (CLA).
The city’s independent auditors presented the fiscal year 2023–24 audit and reported an unmodified (clean) opinion on the financial statements. Matt Wood, partner with ATA (Jackson, Tennessee), told the Board that audit testing for federal grant expenditures — including ARPA funds — came back clean, but the audit identified two findings the auditors described as straightforward to correct.
Key audited figures and findings: Wood reported approximately $60 million in governmental capital asset additions and about $13 million in proprietary (water/sewer) capital additions for the year. Federal grants reported totaled about $12.2 million; testing of ARPA funds (about $12.03 million) was completed with no material exceptions. The auditors noted a management discussion-and-analysis restatement to include two months of sales-tax receivables that increased receivables by about $2.3 million. The audit also reported a net pension liability of about $5.63 million for the reported period.
The two audit findings Wood disclosed were: (1) the city did not close its trial balance and financial statements within the State of Tennessee’s preferred timeline (trial balance and required adjustments arrived late), and (2) the March 31 grant reporting deadline was not met for certain grant reports. Wood said both findings are “fairly easy to correct.”
After the presentation the board voted to accept the audit report (Resolution 25-134) by a 9–0 vote.
The board then considered a separate resolution to award the FY 2024–25 audit contract to CliftonLarsonAllen LLP (CLA) after conducting an RFQ and interview process. Finance staff said the city sought a firm with the capacity to meet audit timelines and work requirements following the FY 2023–24 issues; the board approved the CLA contract by voice vote, 9–0.
Why it matters: A clean audit opinion affirms the city’s financial statements are free of material misstatement; the two findings identify process improvements staff must make to meet reporting deadlines and month-end close timelines. The choice of a new auditor for FY 2024–25 followed a competitive procurement process, in which staff emphasized an expectation for timeline reliability.
Next steps: Staff will address the audit findings and implement the corrective actions described in the audit report. The new auditor contract covers the next fiscal-year audit and staff said CLA accepted the timeline expectations discussed in the RFQ/interview process.
Votes and formal actions: Resolution 25-134 accepting the FY 2023–24 audit approved 9–0. Resolution 25-135 awarding the FY 2024–25 audit contract to CliftonLarsonAllen LLP approved 9–0.
