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Corte Madera accepts delayed FY2024'025 audit; auditors flag bank-reconciliation deficiency
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Summary
The town accepted its delayed annual financial report and audit for the fiscal year ending June 30, 2025; auditors reported a significant internal-control deficiency related to delayed bank reconciliations, an uncorrected but immaterial misstatement, and work to finalize management letters.
The Corte Madera Town Council accepted the town's annual financial report and independent audit for the fiscal year ending June 30, 2025, after a presentation by Finance Director Chris Petlock and the engagement auditor.
Auditor Andrew (identified in the meeting as the presenting auditor) summarized the scope of work, required communications and the principal audit results. He said the audit encountered significant year-end close adjustments and a significant deficiency in internal control related to delayed bank reconciliations during a transition in finance staff. The auditor reported an uncorrected misstatement that management had judged immaterial to the financial statements taken as a whole and described GASB implementations and notes of interest, including pension and OPEB disclosures.
Finance Director Chris Petlock told the council the audit was significantly late compared with the town's usual schedule and that reconciliations had lagged prior to his arrival; he said staff and auditors had worked to complete the audit and that a management letter with recommendations would be delivered in the coming days.
Council members noted the plan to send the internal-control letter to council when complete and asked for follow-up once management's response is ready. One council member moved to accept the report, noting the auditor had issued an opinion (discussion in the meeting included both a reference by the auditor to a "modified opinion" and a council member's later reference to an "unmodified opinion"); the council accepted the audit report by roll-call vote.
Key technical figures raised in the presentation included an increase in total assets tied to CIP additions and certificates of participation, a decrease in deferred outflows and inflows related to pension/OPEB smoothing, and an improved available fund balance that the auditor characterized as healthy relative to GFOA rainy-day recommendations.
What's next: Auditors will issue the final management letter with recommendations; staff will circulate the letter to council and continue work on timely reconciliations and year-end close processes.
