Sewage authority adopts clean audit for fiscal year ending May 31, 2024

The Franklin Township Sewage Authority voted to adopt the fiscal-year audit for the period ending May 31, 2024, after receiving an audit report the board described as an unmodified ("clean") opinion.

The auditor told the board the independent audit would result in an unmodified opinion and noted a state single-audit review tied to the Marcy Street sanitary sewer rehabilitation project. The auditor identified a single, minor finding: in some cases purchase orders were not executed before disbursements, in part because field staff sometimes must order equipment immediately for urgent repairs. "We found some instances where the purchase orders were not being executed prior to disbursement," the auditor said, and added that corrective action has been implemented and a new finance system should reduce these occurrences.

Executive Director Joseph Danielson and staff said the authority responded by requiring an approval workflow in the new finance platform and that urgent field purchases will continue to be handled with follow-up documentation. Danielson said the authority generated roughly $2,000,000 in operating income and that net position grew by about $2.4 million year to year; he also noted operating revenues and capital assets increased in the period presented.

The board adopted Resolution No. 10, formally approving the audit for fiscal year ending 05/31/2024. During the same meeting, auditors and staff described no material weaknesses in internal controls and said noted technical noncompliance items had reasonable responses.

The authority's chair closed the item after the vote; the audit report will be posted on the authority's website per staff comments.