Bluff City audit finds clean opinion but flags internal control and cybersecurity gaps

Clear Point CPAs presented Bluff City’s annual financial statements for the fiscal year ending June 30, 2025, and issued an unmodified opinion, the highest level of assurance an auditor can give, the firm’s manager, Tanya Easley, told the Board of Mayor and Aldermen.

Easley said the city’s governmental net position rose by $193,586 and business‑type activities (water, sewer, solid waste) grew by $244,770, driven in part by property‑tax and court‑fine collections and by grant funds used on sewer work. “We have issued an unmodified opinion,” Easley said, adding that total assets increased modestly year‑over‑year and that business‑type revenues outpaced prior year levels after rate changes that took effect July 1, 2024.

The audit also included three compliance findings. Easley said bank reconciliations, journal entries and payroll processes lacked adequate review, creating a segregation‑of‑duties issue. The audit noted the town had not implemented a cybersecurity plan required by state law for business‑type activities. Finally, the audit was filed after the state controller’s deadline; officials were reminded that annual closing and submission timelines are prescribed by state rules.

Board members asked questions about a reported revenue increase the auditor tied to rate changes. Easley clarified that the comparison spanned fiscal years that included a rate increase effective July 1, 2024, which produced higher revenue in FY2025 compared with FY2024.

The board did not take formal action on the audit presentation during the meeting; staff and commissioners discussed next steps for addressing internal controls and completing a cybersecurity plan ahead of future audits.