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Auditor: Murphysboro earned a clean FY2023 opinion but should tighten segregation of duties
Summary
Kerber Reckle presented an unmodified (clean) FY2023 audit for Murphysboro, noting a $48,000 capital-asset adjustment, a single-audit triggered by roughly $1.8 million in federal spending and recommendations to strengthen internal controls to reduce fraud risk.
Kerber Reckle delivered the Murphysboro FY2023 audit and issued an unmodified opinion, the firm’s auditor told the City Council. “For the FY 2023 audit, I did issue an unmodified opinion,” the auditor said, adding that an unmodified opinion is “accounting terminology for a clean opinion.”
The auditor explained the city’s federal grant activity triggered a single-audit under federal uniform guidance after the city’s federal expenditures exceeded the $750,000 threshold. The firm reported roughly $1.8 million in federal spending in FY2023 and said it treated the water-tower project (about $950,000 of that total) as the major program for audit testing.
The audit identified one proposed adjustment to capital assets totaling about $48,000, which the auditor recommended adding to the government-wide capital-asset listing to improve tracking and insurance coverage. The presenter said the adjustment reflected items that had been expensed in fund statements but not moved to the government-wide capital listing.
Beyond the technical findings, the auditor emphasized governance practices. The auditor cautioned the council to continue careful oversight of disbursements and internal controls, citing two separate, unrelated audits in which disbursement weaknesses had enabled fraud at other governments. “I encourage you to stay that way, question the disbursements,” the auditor said, adding that stronger segregation of duties can reduce risk.
Council members asked for examples and confirmation that there were no reportable findings; the auditor responded that no findings were reported in the single-audit and no past adjustments were refused by management. The auditor also noted the city had a new compliance requirement related to its TIF district after receiving more than $100,000 into that fund this year and said there were no findings on that compliance test.
The audit presentation concluded with the firm offering to follow up on any unanswered questions and to provide further detail in the full financial statements, which include schedules of federal grants and the government-wide statements cited in the presentation.
