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City receives unmodified audit opinion for fiscal 2023–24; auditors note documentation and schedule items
Summary
Raymond LLC issued an unmodified audit opinion on Jackson City's financial statements for the year ended June 30, 2024, while reporting one significant deficiency and one immaterial noncompliance related to documentation and capital asset schedules.
Raymond LLC, the city's external auditor, told the Jackson City Council on Feb. 11 that it issued an unmodified opinion on the city's financial statements for the fiscal year ended June 30, 2024.
The auditor said an unmodified opinion provides reasonable assurance that the financial statements are "reasonably stated," while not offering absolute assurance. Raymond LLC also conducted a single audit because the city spent more than $750,000 in federal awards and reviewed federal programs including the State and Local Fiscal Recovery Funds (SLFRF).
The firm reported one significant deficiency and one instance of immaterial noncompliance. The auditor described the significant deficiency as related to documentation surrounding federal rules and to capital asset schedules; errors in capital asset schedules were corrected during the audit, and the deficiency was framed as a recommendation to improve review and documentation procedures going forward. The immaterial noncompliance cited documentation gaps tied to SLFRF expenditures.
Raymond LLC pointed the council to an "independent auditor's communication with those charged with governance" that lists recommended enhancements to internal controls. The auditor said the city produced a complete annual comprehensive financial report (ACFR) that meets Government Finance Officers Association (GFOA) standards and that management should be commended; the city previously received the award and should receive it again.
The auditor also noted an upcoming accounting standard change affecting compensated absences that the city will implement next year and offered to work with staff on that transition.
Council members thanked the finance team for a thorough process and asked for clarification on the specific control recommendations; the auditor explained the documentation issue involved a special assessments capital projects fund and capital asset recording schedules. The council did not take formal action at the meeting related to audit recommendations; the audit report and the auditor's letter were presented for information and are included in the meeting packet.
