Needles utility authority accepts FY2024 audit; auditor flags inventory control deficiency

The Needles Public Utility Authority accepted its fiscal year 2024 financial‑statement audit after a brief presentation from auditors and staff.

Auditor Roger Martinez of Vasquez and Company LLP told the council the firm was "rendering an unmodified opinion" on the FY2024 financial statements and that the statements were ‘‘fairly stated in all material respects.'' He also said auditors did not identify any material weaknesses, but did report "one significant deficiency" repeated from prior periods concerning internal controls over inventories, and that management is taking steps to address it.

Finance Director Mark Demayo introduced the audit and said the audit team completed procedures under government auditing standards. Martinez noted the audit is a financial‑statement audit, not a forensic examination, and that auditors performed limited fraud procedures but found no matters to report.

Council members asked about the timing and remediation steps. Staff confirmed new inventory systems and staff training are planned and that management accepted and reflected recommended audit adjustments in the financial statements.

Council action: The council moved to "accept and file" the FY2024 financial statements audit; the motion passed on a roll‑call vote with council members recorded as voting yes.

Why it matters: An unmodified opinion affirms the city's financial statements are presented fairly, but the repeated inventory‑control deficiency points to an internal‑control weakness staff must fix to reduce future risk to utility assets and reporting.

Next steps: Staff said it will implement inventory control improvements described to the audit team and will report progress to the board in follow‑up updates.