Williams and Company: Madison's 2024 audit largely clean; OPEB liability qualified without actuarial study; commission approves 2025 engagement

Williams and Company, the city's external auditors, presented the 2024 audit to the Madison City Commission and recommended a 2025 engagement schedule that would return the city to a more timely audit turnaround.

Joleen Hint, engagement manager for Williams and Company, told commissioners that the general fund, sales tax, city‑hall construction and Creek Bridge mitigation funds received unmodified (clean) opinions. "In the general fund ... you had an unmodified opinion. So what that means is it was clean," she said. The firm explained that a limited qualified opinion exists only for the city's OPEB (other post‑employment benefits) liability because an actuarial study was not performed for the plan; Joleen said the city could obtain an actuarial study (estimated roughly $4,000–$6,000) to remove the qualification or accept the qualification given the small number of participants.

The auditors also reported about $7.8 million in federal expenditures for 2024, which triggered single‑audit procedures; the firm found no material noncompliance in the major program tests. Williams' team raised a financial reporting material weakness related to a journal entry/financial reporting process that staff are addressing with revised worksheets and internal controls. The auditors commended finance‑office improvements and the city's move to Tyler Technologies, which they said aided access to records and reduced time spent on information requests.

Commissioners asked whether the OPEB qualification affects bond ratings; Joleen said she would not expect it to be derogatory but recommended consulting the bond rating agency. The firm estimated that a first‑year audit had required an elevated number of hours (about 936 recorded hours) because of transition work and the first‑time nature of some testing, and Joleen described plans to reduce future audit hours as city staff assume more preparatory tasks.

After discussion about timing, single‑audit submission deadlines and a modest fee increase for the 2025 engagement, the commission approved the Williams and Company engagement letter for the 2025 audit and authorized the firm to proceed under the proposed timeline.

Next steps Williams and Company will begin fieldwork under the 2025 engagement, help the city meet clearinghouse/state deadlines for audit submissions, and work with finance staff to address the identified financial reporting weakness and efficiencies noted in fixed‑asset reporting.