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Audit: Lindsay receives clean opinion but auditors flag material weaknesses in controls
Summary
Price Page & Company issued an unmodified (clean) FY2023–24 audit opinion for the City of Lindsay but reported two material weaknesses in internal control documentation and significant audit adjustments; council accepted the audit and asked staff to address the findings.
Price Page & Company presented the FY2023–24 financial statement audit to the Lindsay City Council and delivered an unmodified (clean) opinion on the city’s financial statements and on compliance for federal awards, audit manager Anthony Gonzales told the council.
"The city did receive an unmodified or a clean opinion," Gonzales said, adding that the firm also identified two material weaknesses in internal control that the council should review. The findings centered on lack of documentation of internal controls, segregation‑of‑duties issues that increase fraud risk, and multiple audit adjustments the auditors had to post to present financials in accordance with generally accepted accounting principles (GAAP).
What the auditors reported: The firm said it had to audit opening balances because the prior auditor had issued a disclaimer of opinion, which meant staff and auditors had to post numerous journal entries and restatements to correct beginning balances. The audit also included a single‑audit component after the city expended more than $750,000 of federal funds; the single‑audit compliance report received a clean opinion as well.
Council reaction and follow‑up: Council members thanked the audit team and emphasized the importance of addressing the internal‑control recommendations before pursuing major financing. The city manager and staff said they will review the auditors’ recommended corrective actions, which include documenting controls, adding independent review of vendor‑file changes, and ensuring compensating oversight where full segregation of duties is impractical.
Outcome: The council accepted the audit presentation and directed staff to implement the auditors’ recommendations and report back on progress; the acceptance was recorded during the action‑item portion of the meeting.
