Auditors give Louisburg a clean FY2023 opinion but flag multiple control weaknesses; council approves PB Meyers contract
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Summary
PB Meyers presented a clean (unmodified) opinion on Louisburg's FY2023 financial statements but reported restatements, two instances of noncompliance, nine material weaknesses and one single-audit material weakness tied to ARPA reporting; the council approved a PB Meyers contract for the FY2023'24 audit by voice vote.
Robbie Bittner, a partner with audit firm PB Meyers, told the Louisburg Town Council that the firm issued an unmodified (clean) opinion for the town's fiscal year 2023 financial statements, while adding an "emphasis of matter" noting restated beginning balances as of June 30, 2022.
Bittner said auditors identified two instances of noncompliance that were also associated with material weaknesses and nine material weaknesses in internal control related to preparation of the financial statements. He said the town expended more than $750,000 in federal funds during the fiscal year, which triggered a federal single audit focused on ARPA (American Rescue Plan Act) funds; that single-audit work disclosed one material weakness related to reporting compliance.
"We were able to get through it and come to what I think everybody wants to have, which is a clean, good set of financials," Bittner said, while cautioning the council that the audit included an emphasis of matter and a number of corrective actions listed in management's response.
Bittner detailed that some beginning balances were restated (as of 06/30/2022) and that the town face[d] seven performance indicators of concern when the auditors populated the Local Government Commission data input form. He said those indicators generally trace back to findings in the audit report and that the town has 60 days from the presentation of the performance indicators to respond to the Local Government Commission with corrective actions.
Town staff recommended continuing with PB Meyers to perform the FY2023'24 audit. The council moved to approve an audit contract with PB Meyers and approved the contract by voice vote; the mayor called for "ayes," and the motion carried with no opposition recorded.
What happens next: the audit report and the schedule of findings include management's corrective-action plans; council and staff will prepare the LGC response within the 60-day window and monitor implementation of the corrective actions identified in the audit.
Votes at a glance: the council voted to approve the PB Meyers contract for the FY2023'24 audit (motion moved and seconded; voice vote: ayes recorded, no recorded nays).
