Independent audit issues clean opinion; 1 significant deficiency for motor pool capitalization

BDO partners presented the Petersburg Borough's fiscal year 2024 financial-statement audit and federal single audit to the assembly on March 3, reporting unmodified (clean) opinions and noting one significant deficiency.

Vicky Shrestha, partner at BDO Anchorage, summarized the audit wrap-up materials and told the assembly that the financial statements and federal single audit both received unmodified opinions. "We issued an unmodified or a clean opinion on the financial statements and released our report on 02/06/2025," Shrestha said.

BDO's report identified the audit's significant-risk focus areas (grant revenue, management override of controls, and IT segregation issues) and described corrected and uncorrected misstatements. The auditors made one corrected misstatement relating to an item in the motor pool that was not capitalized and noted several minor, unrecorded items related to GASB 68/75 lease posting decisions that management deemed immaterial.

On internal controls, BDO found no material weaknesses but reported 1 significant deficiency associated with the motor-pool capitalization and related control breakdown; the auditor said management posted an adjustment to correct the item. BDO also reported no findings of noncompliance in the federal single audit.

Shrestha said the borough's accounting team provided requested information timely and that the audit process proceeded with no significant disagreements or unresolved issues between management and auditors.

Ending: The assembly accepted the presentation. BDO indicated it was available to respond to follow-up questions and the borough's finance staff will provide the finalized audit documents in the official packet.

(Notes: Quotations and audit characterizations are drawn from the auditor's presentation heard at the March 3 meeting.)