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Columbiana receives FY2023 audit with clean opinion; auditors flag statement-preparation weakness
Summary
Auditor Dent Moses reported an unmodified opinion on Columbiana's FY2023 financial statements but noted a material weakness tied to in-house statement preparation; council will file the report with the state examiner within 60 days.
The Columbiana City Council received the City of Columbiana’s fiscal year 2023 audited financial statements on March 4. Walker Gan of the Dent Moses accounting firm told the council the audit produced an unmodified (clean) opinion, indicating the financial statements “present fairly in all material respects.”
The audit showed total governmental liabilities around $15.3 million, business‑type (sewer) operations reported a small net income (about $82,000), and total government net position for the year ended September 30, 2023, was reported near $17.4 million. The auditor also described a prior‑period adjustment to record deferred inflows related to property taxes.
Why it matters: an unmodified opinion is the standard municipal finance objective, but the audit included a required disclosure of a material weakness in statement preparation. Gan said statement preparation by staff is a common municipal weakness when small finance teams manage GASB conversions and additional reporting requirements. The auditor said the finding will appear in the publicly available financial reporting package and the city’s response will be included.
Council members asked procedural questions about terms used in the audit. The mayor and auditor confirmed the city has 60 days to provide a copy of the finalized report to the state examiner’s office.
What’s next: the audit and the auditor’s communication to governance will be made available to the public, and the city’s written response to the internal control finding will appear alongside the report. Council discussion did not include any vote tied to the audit itself at the meeting.
