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City audit receives clean opinion but auditors flag internal control weaknesses and cybersecurity gap
Summary
CliftonLarsonAllen told the Spring Hill board it issued an unmodified opinion on the FY2025 financial statements but identified material weaknesses in internal control over financial close and compliance weaknesses related to a required cybersecurity plan and a federal‑program internal control issue tied to overtime charges; the board accepted the audit report by resolution.
Auditors from CliftonLarsonAllen presented the City of Spring Hill’s FY2025 financial statements and related reports at the May 4 meeting, saying they issued an unmodified (clean) opinion on the financial statements but identified material internal control weaknesses that required adjustments during the audit.
The audit team told the board the material weaknesses relate to financial close and reporting processes; auditors made adjustments during fieldwork so that the statements could be presented fairly. The firm also reported a compliance finding tied to a required cybersecurity plan: although components of a plan exist, auditors said the city could not demonstrate adoption and required biennial updates as specified by the Comptroller’s Audit Manual. Finally, auditors identified an internal‑control weakness tied to a major federal program: staff discovered issues in calculating overtime charges allocable to FEMA; the city communicated with FEMA and implemented an agreement to move forward, but the internal‑control finding remains.
“The audit opinion that we have provided is an unmodified audit opinion over the financial statements,” the auditor said, noting other required communications to governance on corrected and uncorrected misstatements and internal control issues. BFAC and staff discussed timeline improvements for audit delivery; Vice Mayor Linville said BFAC will track milestones and expects on‑time delivery next year.
The board approved Resolution 26‑139 accepting CliftonLarsonAllen’s audit report and directed staff to address the internal control findings and compliance items raised in the auditor’s communication with governance.
Staff said the audit adjustments were made during the process and that the firm provided an unmodified opinion on federal program compliance while noting internal control weaknesses for the major federal program.
