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Mount Shasta accepts FY 2023–24 audited financial statements; audit finds many adjustments but issues clean opinion
Summary
Council accepted the independent audit and single audit for fiscal year 2023–24. Auditor issued a clean opinion, noted numerous audit adjustments and recommended corrective actions; council approved resolution CCR-25-08.
The Mount Shasta City Council voted unanimously to accept the independent audit and single audit for fiscal year 2023–24 and adopted Resolution CCR-25-08 to formalize acceptance.
City staff said the auditor issued a clean opinion — indicating financial statements are free of material misstatement — while also identifying a substantial number of audit adjustments that staff will correct and track through a corrective-action plan.
Melissa Dodd presented highlights from the audit. She said the city reports government assets with accumulated depreciation of about $13,700,000 and a governmental net position of about $4,800,000; government‑type activities expenditures were about $8.5 million, grants totaled approximately $1.9 million, and tax revenues were about $5.2 million. The net position declined by roughly $600,000 from the prior year, the presentation said.
Councilmembers asked about the long list of audit adjustments. Dodd said many adjustments reflected transactions that were not recorded in the financial system in prior periods and that she and the auditor had developed a corrective‑action plan. The auditor also flagged lease accounting questions tied to Axon body‑camera equipment and the subscription services that accompany that equipment.
Council discussion addressed the city’s ongoing implementation of its Springbrook financial and ERP system. Staff said implementation remains in progress: payroll is scheduled to go live in April, purchase orders next month, accounts receivable in May, business licensing in July and utility billing in August. Staff also said the vendor had agreed to a credit to the city because modules paid for earlier had not been fully used while implementation lagged.
A motion to accept the independent audit reports and single audit (Resolution CCR-25-08) carried 5-0.
Councilmembers noted the audit’s timeliness and the staff plan to apply corrective actions to reduce the likelihood of repeat adjustments in future audits.
