Auditors give Balch Springs clean opinion; note one ARPA compliance timing finding

Auditors from Weaver Tidwell told the Balch Springs City Council Monday they will issue an unmodified (clean) opinion on the city’s fiscal year 2024 financial statements and the federal single audit.

Claire Wooten, director in the firm’s public-sector assurance practice, presented the audit results and told council the auditors identified no material weaknesses or significant deficiencies in internal control over financial reporting. The single-audit opinion will also be unmodified; auditors classified the city as a “low-risk auditee,” she said.

Wooten described a single compliance finding related to the American Rescue Plan Act (ARPA). The finding involved a late submission of the required annual program and expenditure report for ARPA funds; auditors said the late filing occurred under the prior finance director. Wooten said the report for fiscal 2025 was submitted by the April 30 deadline under the current finance director, and auditors termed that corrective action as already completed for the next reporting period.

The auditors noted the audit process was delayed by internal staffing turnover and by the city’s conversion to new financial and payroll systems. Wooten said those timing issues did not result in adjustments that affected the auditor’s opinion or reveal material deficiencies. She also outlined standard audit procedures including testing journal entries, controls over cash disbursements and payroll, sampling of utility-billing transactions and testing of federal-award compliance.

Ending: The auditors will issue the formal reports with an unmodified opinion; council did not take formal action on the presentation but accepted the audit communication and thanked staff and the audit team.