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Rawlins council accepts FY2025 audit; auditors flag control weaknesses and misclassifications
Summary
The Rawlins City Council on Jan. 6 accepted the fiscal year 2025 audit from Carver, Plorick & James. Auditors issued an unqualified opinion but reported four significant deficiencies, one noncompliance, a $123,000 misclassified revenue item and roughly $434,000 of under‑pledged bank collateral.
The Rawlins City Council voted Jan. 6 to accept the city's fiscal year 2025 financial audit from Carver, Plorick & James, a 56‑page report that delivered a clean opinion while calling out internal control weaknesses the auditors recommended the city address.
The audit opinion "is that these financial present fairly in all material respects," auditor Jason Lund said during his presentation, summarizing the work the firm performed and the tests of cash, receivables and capital assets. Lund also reported "four significant deficiencies" and one matter of noncompliance the firm documented.
Key findings the auditors highlighted include: a recurring segregation‑of‑duties issue tied to limited administrative staff; a $123,000 amount that auditors determined was revenue misclassified into an interfund transfer account (sourced from a splash‑pad fundraiser and tree sales); outdated bank signers appearing on a Bank of West confirmation for a donated certificate of deposit; and approximately $434,000 of under‑pledged collateral on city deposits that the auditors said should be remedied to meet state requirements.
Lund described the findings as actionable recommendations rather than catastrophic failures. "These are just good recommendations where improvement can be made," he told the council, and he thanked city staff for cooperation that allowed the firm to meet filing deadlines.
Council members asked clarifying questions about the timing of the observations (the audit covers the year ended June 30, 2025) and about how management plans to address the segregation and collateral issues. The city's staff and finance director were acknowledged during the presentation for pulling together documentation amid personnel transitions.
A motion to accept the fiscal‑year 2025 audit was made and seconded; the clerk reported the motion passed in the council's online vote. The council did not take additional formal action in the meeting to adopt specific corrective schedules, but the audit report and its recommendations are now in the official record and available for follow up by management and the council.
The council's acceptance restores the audit to the Department of Audit filing process and sets the stage for staff to return with any proposed policy or administrative changes to address the auditor's recommendations.
