Alba council accepts FY2025 audit after auditors flag internal‑control gaps
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Summary
Auditors from HSPG presented an unmodified opinion on Alba’s FY2025 financial statements but identified internal‑control weaknesses—segregation of duties, payroll and utility billing controls, and timing/reporting items on federal grants; the council accepted the audit and was urged to adopt process improvements.
The City Council of the City of Alba accepted the city’s FY2025 audited financial statements on March 23 after an audit presentation by Andy Grover of HSPG, who said the firm issued an unmodified (clean) opinion on the city’s governmental and enterprise funds.
Grover told the council the audit shows the city’s stabilization reserve stood at roughly $330,000 and the hotel‑tax fund held about $570,000. He said the Alba Utility Authority performed strongly on operating income and that across funds the auditors found the financial statements to be “materially correct.”
Grover also identified several internal‑control findings and recommendations. He said small staffing levels create inherent segregation‑of‑duties risks and cited specific concerns in payroll and utility‑billing processes in which a single employee had the ability to approve, record and access transactions. He described a roughly $50,000 debt taken in 2024 that was not recorded on the 2024 audit and said the city had some federal grant charges that were not reported in the year they were incurred; those items were not deemed material to the opinion but were raised as process issues.
The auditor recommended that the council and finance committee strengthen oversight, formalize written procedures that address both state and federal requirements, and adopt purchasing and reporting practices that reduce the risk of misstatement. Grover noted that the city’s written policies were generally aligned with state law but urged supplementing them to cover federal grant compliance where requirements differ.
Council members discussed the findings but recorded no objections to the audit. Councilman Bowman moved to accept the FY2025 audited financial statements; the motion was seconded and carried.
The council did not adopt specific corrective actions during the meeting beyond recommending that staff pursue process improvements and return with policies or plans for the finance committee’s review. The audit and the accompanying required‑communication letters will be filed with state and federal auditors as required.
