Auditor issues unmodified opinion; city restates prior-year capital accounting for power and fiber funds

Moss Adams engagement leader Kevin Muller Leilley told the Idaho Falls City Council work session that the firm issued an unmodified, or “clean,” opinion on the city’s fiscal year 2024 financial statements, while also reporting one material weakness that required a prior-period restatement.

Muller Leilley said the restatement arose after the audit team and city staff found that expenditures for multi‑year projects in the power and fiber funds had not been capitalized in the correct periods; the Fiber-to-Home project and related work orders were the largest drivers. “We did issue a clean opinion, which is an unmodified opinion,” Muller Leilley said, and added that city staff had self‑identified the error and prepared the correcting entries before the audit team finalized testing.

The finding was characterized as a material weakness because it affected previously issued…