External auditors outline FY2025 timeline, materiality and significant risk areas

The Audit Committee received a briefing on communications required for the FY2025 external audit on Nov. 5.

Melanie Keaton, director of finance, said the city engages an external audit firm under a multi-year contract (year four of five, with a possible two-year extension). The audit firm Vismazars presented the planned timeline: planning and risk assessment in July, fieldwork and tests in August, a planning presentation in November, report issuance planned for February and final resolution by March.

Auditors emphasized materiality and the need to focus testing on areas likely to contain material misstatements or compliance issues, particularly revenue recognition and fraud risk, and program compliance for federal and state grant programs. The auditors noted they do not perform forensic audits but must evaluate risk of fraud within an annual financial audit and will coordinate with component units whose financials are consolidated into the city's statements.

The auditors invited committee members to raise matters they want examined and emphasized that management remains responsible for controls and reporting. Committee members asked about follow-up for suspected irregularities and how component units' audited reports are incorporated; auditors described their procedures for assessing impact and for requesting reports from other auditors as needed.

Provenance: topicintro — excerpt beginning 01:28:35: "Punto numero 10 es una sesiF3n informativa sobre la comunicaciF3n requerida para la auditorEDa externa independiente del aF1o Fiscal 2025. ... Mi nombre Melanie Keaton, soy la directora de financiamiento." (block b_5315.09). topfinish — excerpt 01:39:59: "Si no hay mE1s preguntas, la siguiente junta es para el 3 de diciembre, 2025." (block b_6225.52).