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Auditors issue clean opinion for Newport; one minor state-budget noncompliance noted
Summary
External auditors reported unmodified (clean) audit opinions for Newport and its urban renewal agency for the year ended June 30, 2024, and noted a single, minor state-budget noncompliance.
Jessica Luther Haynes, senior manager at Aldridge CPAs and Advisors, presented the City of Newport's audited financial statements for the year ended June 30, 2024, and reported unmodified (clean) audit opinions for both the City of Newport and the Newport Urban Renewal Agency.
Haynes told the council the auditors found no material weaknesses or significant deficiencies in internal controls. She also said the auditors identified one instance of noncompliance with Oregon municipal audit standards: expenditures in the capital projects reserve fund exceeded appropriations in one budget category (emergency coordinator) by about $7,200. Haynes described the amount as small relative to the city's budget and said auditors conducted additional reviews under government auditing standards and the Uniform Guidance single-audit procedures (which tested Coronavirus State and Local Fiscal Recovery Funds) and found no other instances of noncompliance or findings.
Councilors asked for clarification about the $7,200 overrun. City finance staff explained the amount resulted from corrected journal entries and final posting adjustments; staff said the overrun occurred because certain payments were posted to the emergency coordinator category and were later adjusted when the final reconciliations were completed.
Haynes reviewed other customary audit materials: the engagement letter scope, corrected journal entries (many related to lease accounting), trends and budget-to-actual information, and the management representation letter. She confirmed the auditors issued their reports dated Dec. 16, 2024, and that the city met the Oregon filing deadline (Dec. 31).
Why it matters: a clean (unmodified) audit opinion is the strongest standard auditors can give; it indicates the financial statements present fairly in all material respects. The single state finding was described as a minor appropriation overrun and was corrected through standard year-end accounting procedures.
There was no formal recorded vote on the audit presentation during the meeting; the auditors concluded their presentation and left contact information for follow-up questions.
