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Village accepts FY2024 audit; auditors report clean opinion and three findings
Summary
The village council accepted the fiscal year 2024 audit after the auditor issued an unmodified (clean) opinion but reported three findings: multiple material audit adjustments, a temporary lapse in deposit collateral coverage, and one fringe-benefit reporting error related to vehicle personal use.
The Corrales Village Council unanimously approved acceptance of the fiscal year 2024 audit after a presentation by Joshua Trujillo of the HPT Group. Trujillo told the council the audit report provides an unmodified opinion on the village's financial statements but includes three findings that warrant follow-up.
Trujillo said auditors made a number of adjustments during the audit — roughly 15–16 adjustments — and reported a finding related to the quantity and materiality of those adjustments. He said most adjustments related to accounts receivable and unearned revenue timing, and that the repeated finding has appeared in previous years.
A second finding involved compliance with the State Public Money Act requiring at least 50% of bank deposits be insured or collateralized; the village had a lapse for roughly three months (including June 30) when only about $3.7 million of roughly $10.5 million in deposits were insured, Trujillo said. He described it as a likely bank-side issue and said the village had collateral restored after the audit year-end; staff said they will begin monthly checks of collateral/insurance statements to avoid recurrence.
The third finding concerned fringe-benefit reporting: an employee allowed limited personal use of a village vehicle was not properly included for fringe-benefit reporting on the employee’s W-2. Trujillo said the omission related to one employee and would be followed up in next year's audit.
Councilors asked follow-up questions about tri-party collateral arrangements, how "on-call" vehicle use is defined, and whether material adjustments are systemic. The auditor explained adjustments arise from timing or estimates (for example, GRT receivables and grant revenue recognition) and said detailed lists of adjustments were provided to village finance staff. After discussion, the council moved, seconded and approved the resolution accepting the audit (listed on the agenda as 26-07 and corrected in discussion to 25-07); the motion passed unanimously.
