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Belton receives FY2024 audit; auditors qualify Water Fund opinion over year‑end inventory
Summary
BT and Company presented Belton’s FY2024 financial statement audit, noting three uncorrected misstatements (deemed immaterial) and a qualified opinion limited to the Water Fund because auditors could not observe year‑end physical inventory; management provided responses and a management letter outlining internal control deficiencies.
BT and Company principal Emily Sheldon told Belton City Council that the firm completed its fiscal‑year 2024 financial statement audit and issued a qualified opinion limited to the Water Fund after auditors were unable to observe the city’s year‑end physical inventory for that fund. "The city's estimates did appear reasonable," Sheldon said, while noting auditors recorded three uncorrected misstatements that were considered immaterial to the financial statements.
Sheldon outlined procedures performed under applicable accounting standards, including tests of evidence supporting amounts and disclosures and evaluation of significant accounting estimates. She said the city implemented GASB 96 (subscription‑based IT arrangements) and GASB 101 (compensated absences) during the year and also changed its methodology for recording capital asset depreciation.
The audit team identified a material weakness in prior years that city management resolved and reported one new significant deficiency in utility billings and allowance account balances for fiscal 2024, along with a controlled efficiency regarding Belton Parks and Rec purchasing authority documentation. Those findings are described in the Management Letter that accompanies the audit; management’s written responses and planned timelines for remediation are included in the packet presented to council.
Sheldon told council that, apart from the inventory limitation for the Water Fund, the fiscal‑year 2024 financial statements were presented fairly, in all material respects, in conformity with generally accepted accounting principles for all opinion units outside the Water Fund. She added the audit team observed the FY2025 inventory count and did not expect the qualification to continue into the next audit.
Council members asked whether many findings were historical. Sheldon and staff confirmed several items were carried forward from the FY2023 audit; she said the management letter includes the firm’s recommendations and that the city may adopt different corrective actions than those suggested.
The presentation concluded with thanks to city staff for cooperation. The council did not take separate action on the report at the time of the presentation beyond accepting the auditor’s briefing.
