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Auditor: Somerset’s 2022–23 financials receive a clean opinion, single-audit finds compliance issues
Summary
Casey Peterson & Associates presented the city—s 2022–23 audit, giving an unqualified opinion on modified cash-basis statements while flagging budget overexpenditures and single-audit findings tied to federal grant reporting; a corrective action plan was noted as submitted to federal authorities.
Casey Peterson & Associates told the Somerset City Commission on Nov. 7 that the city—s 2022–23 financial statements received a clean opinion on the modified cash-basis presentation, but auditors identified material weaknesses and compliance findings related to budget control and federal grant reporting.
Devin Papp, the audit partner leading the engagement, said auditors identified higher-risk areas they reviewed in depth: revenues, budgetary compliance for expenditures and grant compliance, and management controls over assets. "The areas we identified there were revenues... expenditure through the budgetary compliance and grant compliance," Papp said, noting the engagement included a single audit because of federal grant activity.
The auditors summarized 2022 as a year with higher revenues (noted as roughly $230,000 higher than the prior year) and operating results that covered expenses. For 2023, Papp said cash declined by about $105,000 in part because the city began drawing down loan proceeds and incurred engineering costs for a water-treatment plant expansion. He also pointed to capital-project timing and long‑term debt amortization schedules through 2029 as items the commission should monitor.
On federal funds, Papp said the city received roughly $3.5–$3.6 million in federal grant funding in 2023 that triggered single‑audit testing. The single-audit work produced findings: overexpenditure of certain budgets, deficiencies in preparing the schedule of expenditures of federal awards (SEFA), and a late federal data‑collection form filing. The auditor said a corrective action plan appears in the report and was submitted to the federal government; he reported it had been accepted.
The presentation included routine disclosure of leases and five‑year commitments (equipment leases and body-camera leases) and urged the commission to track budget variances and perform amendments as needed. Commissioners asked clarifying questions; Papp closed the presentation after the board had no further technical questions.
Next steps: The audit and the single-audit reports remain on file and the commission was advised to monitor the corrective-action plan and ensure timely federal reporting going forward.
