Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit Finance topic
No spam. Unsubscribe anytime.
Auditors issue unmodified opinion for FY23 but flag recurring internal-control weaknesses; advisors show debt profile and AA2-range diagnostic
Summary
Auditors reported an unmodified opinion on Hopewell’s FY23 financial statements while noting recurring material weaknesses in internal controls; the city's financial adviser presented a diagnostic that places the city's score near a double-A-2 band and said the proposed $15 million borrowing would not materially change the score.
Independent auditors told council they issued an unmodified opinion on the city's FY23 financial statements but reiterated material weaknesses in internal controls related to reconciliations and monthly procedures, largely tied to older years of records. The audit team said those findings are similar to prior years and will persist until reconciliations and procedures are implemented consistently.
Auditor David Foley said the city and school compliance for major federal grants showed no significant deficiencies in grant compliance for FY23. Foley and council discussed the timeline for completing FY24 work, with auditors targeting completion in December.
Separately, financial advisor Jimmy Sanderson presented a credit diagnostic based on the FY23 ACTF results. He walked through Moody's-like scorecard components (economy, financial performance, institutional framework and leverage), and noted a weighted score of about 3.23 that equated on the firm's diagnostic to a 'AA2' category. Sanderson told council that including the contemplated $15 million borrowing in the FY23 diagnostic did not materially change the score.
Council members pressed auditors and staff on the timeline and on achieving monthly reconciliations to remove material weaknesses; auditors said improvements in FY24 procedures could be reflected in future diagnostics and ratings.
