External auditors issue unmodified opinion on Denali Borough 2024 finances; two internal-control recommendations noted

External auditors from Alliance CPAs presented the Denali Borough's fiscal-year 2024 audit to the assembly on Feb. 12 and issued an unmodified opinion on the borough's basic financial statements for the year ended June 30, 2024.

The auditors said their procedures, completed in December, found the statements were fairly presented in accordance with U.S. generally accepted accounting principles. They noted the borough did not expend federal or state awards in excess of the single-audit threshold for the year, so no single audit was required for FY2024.

Audit testing identified two internal-control deficiencies: (1) some expenditures had not been recorded in accounts payable as of June 30, 2024, and (2) errors were found in the calculation of accrued paid time off. Auditors did not classify either as a material weakness. They also recommended that the borough formalize permanent investment fund guidance to describe portfolio allocation and a rebalancing approach, including thresholds that would trigger rebalancing.

Auditors reported a number of corrected journal entries were made for financial-statement presentation and other audit adjustments; they thanked borough staff for timely responses during the audit. The assembly asked that finance staff bring the investment-policy follow-up and any rebalancing thresholds to the finance committee for review.

Ending: The assembly accepted the audit report presentation and auditors will submit the final report and follow-up letters; staff will follow up on the investment policy recommendation and the two control items identified.