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Auditors give Whitefish Bay "unmodified" opinion; find significant segregation‑of‑duties deficiency
Summary
LarsonAllen auditors issued an unmodified opinion on Whitefish Bay's 2024 financial statements and an unqualified ARPA compliance examination, but reported a recurring significant deficiency related to segregation of duties in the finance function because the village's small staff limits separation of tasks.
Whitefish Bay96CliftonLarsonAllen auditors told the Village Board on June 16 that they issued an "unmodified" opinion on the Village99s 2024 financial statements and reported no ARPA compliance exceptions, while also flagging a recurring significant deficiency related to segregation of duties.
Jake Lenell and Mike Anderson of CliftonLarsonAllen (CLA) explained the audit approach and the four deliverables: the auditor99s opinion on the annual comprehensive financial report (ACFR), required governance communications, an internal control letter and the ARPA (Coronavirus State and Local Fiscal Recovery Funds) examination. Anderson said the firm issued an unmodified (clean) audit opinion for the 2024 reporting year and found the ARPA expenditures examined complied with Treasury guidance.
At the same time, CLA noted a significant deficiency in internal control over financial reporting stemming from segregations‑of‑duties limitations in the village99s finance operations. Anderson explained that the village99s small staff size makes full segregation difficult and that mitigating controls (including oversight by finance staff and trustee governance) reduced the issue's severity so it did not rise to a material weakness. He encouraged continued attention to compensating controls and said the deficiency is revisited annually.
Trustees asked how CLA distinguished between a "significant deficiency" and a "material weakness." Anderson replied that a material weakness is more severe and pervasive; CLA judged the village99s issue to be a significant deficiency because of mitigating circumstances including staff reviews and governance oversight.
The board accepted the audit as presented by motion. Trustees thanked finance staff for their preparation; staff noted the operational work required to prepare audited financials.
Key facts from the presentation: - Audit opinion: Unmodified (clean) for fiscal year ending Dec. 31, 2024. - ARPA examination: No compliance exceptions reported for funded activity reviewed. - Internal control: One significant deficiency reported (segregation of duties) tied to small finance staff; CLA described mitigating controls in place and annual reassessment.
Next steps: The board accepted the audit and asked staff to continue strengthening compensating controls and to follow up on CLA governance recommendations.
