Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit topic
No spam. Unsubscribe anytime.
Auditors give Needles utility agency a clean opinion but flag inventory controls
Summary
Auditors told the joint meeting they issued an unmodified (clean) opinion on the Needles Public Utility Authority's 2023 financial statements but identified a significant deficiency in inventory controls; council accepted the audit after staff said staffing shortages delayed completion.
Vasquez & Company presented an unmodified audit opinion for the Needles Public Utility Authority (NPUA/MPUA) covering the fiscal year ended June 30, 2023, and the council voted to accept and file the report.
The lead engagement partner for Vasquez & Company told the council, “based upon the results of the procedures we perform, we are rendering an unmodified opinion. This is a clean opinion.” The auditors reported no material weaknesses or signs of fraud but did identify a significant deficiency related to inventory accounting that staff must address.
The auditor and staff explained the audit arrived late because of staffing shortages and because a new audit team requested more extensive information than past teams. City staff said they have recently hired a finance director and additional positions intended to prevent future delays. The city manager and staff committed to working with auditors on implementing new accounting pronouncements and improving internal controls.
Council members asked follow‑up questions about the delay and the inventory weakness. Staff said the inventory shortfall relates to dispersed materials and that plans include consolidating inventory into a new building on California Avenue to improve controls. The auditor said proposed adjustments were booked by management and there were no disagreements with staff over accounting issues.
The council moved, seconded, and approved the auditor's report by roll call; votes were recorded as "yes" for the members present.
The vote concludes formal acceptance of the 2023 audit. Staff said work on the 2024 utility audit will continue in the coming months and that the city and MPUA will collaborate with auditors to address control findings.
