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Wallsburg audit: auditors give town clean opinions, note capital-projects budget overrun
Summary
An independent auditor told the Wallsburg Town Council that its FY2024 financial statements received unmodified (clean) opinions, but the audit found the capital projects fund exceeded its budget; auditors encouraged stronger budget management and internal controls.
John Hattery, the partner who led Wallsburg’s FY2024 audit, told the town council the audit produced unmodified (clean) opinions on the financial statements and on the compliance areas tested, but included one finding that the capital projects fund exceeded its budget.
The auditor said Wallsburg exceeded the $1 million threshold in expenditures this year, which triggered a full audit rather than the less-invasive agreed-upon procedures it had previously received. ‘‘Audits are more invasive,’’ Hattery said, adding that audited statements typically make it easier for governments to obtain grant funding because grantors rely on audited financial information.
Why it matters: the finding is limited to the capital projects fund, not the town’s overall financial statements. Hattery recommended that the council give budgets reasonable ‘‘grace’’ for timing differences and late invoices and urged regular review of the town’s budget-to-actual reports to reduce the risk of repeat findings. He also encouraged continuing to use Polaris staff support for accounting and internal-control processes and said the town’s staff were responsive during the audit.
Details: Hattery described the audit process, noting auditors test each balance in the financial statements and review required supplementary information such as the management’s discussion and analysis. He said the town’s minutes and public-notice filings, which had been a prior finding, were now current and that the capital-projects finding appeared to be a timing/monitoring issue rather than a systemic accounting error. The auditor offered to answer follow-up questions and recommended the council continue to review financial reports and monitor internal controls.
What happens next: staff and council members said they will use the audit report to inform next year’s budget work. The auditor said the town will likely have another audit next year if large projects continue to increase annual expenditures above the statutory threshold.
