Smithfield receives clean audit; council told to respond to four LGC findings

Alan Thompson, the town’s independent auditor, told the Town of Smithfield council that the firm had issued an unmodified (clean) opinion on the town’s fiscal‑year 2024–25 financial statements.

“We issued an unmodified report, which is the highest level reporting we can do,” Thompson said, calling the results “very positive.” He highlighted a general fund total fund balance of $27.8 million and an unassigned fund balance of $20.1 million, and said fund‑balance ratios and revenue trends were strong across recent years.

Thompson identified two standard audit risk focuses — management override of controls and revenue recognition — and said the firm’s testing left it comfortable with management’s estimates and disclosures. He also noted GASB Statement 101 changes to leave‑time accounting that affected certain funds and business‑type activities but did not change the overall audit opinion.

At the end of the presentation Thompson reviewed four items that the Local Government Commission (LGC) expects a written response on within 60 days, including: the late submission of audit materials; reconciliations and record timeliness; corrections related to prior depreciation schedules; and a set of budget violations in capital project funds that need to be brought into compliance.

Council members thanked staff and auditors and confirmed they will prepare and submit responses within the required 60‑day period. The council also approved, as part of the consent agenda, an amendment to the audit contract reflecting an additional $5,000 in professional fees to complete the fiscal‑year 2025 audit process.

The council did not take further action on the audit itself; staff said they already have draft responses prepared for the LGC.