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City auditor delivers clean opinion; recommends timelier financial reporting
Summary
Sikich auditor Steve Trippi told the Bridgeton City Council the city received a clean audit opinion, flagged delayed internal financial reporting and recommended monitoring new GASB 96 subscription-accounting requirements.
Steve Trippi of accounting firm Sikich presented the City of Bridgeton’s annual audit to the City Council on Aug. 21, telling the council the financial statements received a clean opinion.
"Our opinion is that the governmental activities, each major fund, and the remaining fund information ... were presented fairly in all material respects," Trippi said during his presentation. He said management provided a representation letter in late June and no other accountants were consulted on the audit.
Trippi highlighted the implementation of GASB Statement No. 96 for subscription-based information-technology arrangements and said auditors reviewed long-term software contracts to determine whether long-term obligations were properly recorded. He told the council the audit found no material misstatements that required correction and no other audit findings of significance.
He also called out internal-control and reporting practices that should be improved. "We noted that internal financial reports are being presented approximately four months behind for the previous month," Trippi said, recommending the city get reports up to date within one to two months so elected officials have timely information for decisions.
Trippi summarized financial changes from last year: cash and investments increased by about $2.6 million; the city recognized roughly $455,000 more in grant receivables tied to the Bear Berryhill Irrigation Project; depreciation and asset activity accounted for significant movement in capital assets; and ARPA-funded activity totaled about $1.6 million in expenditures, with $1.531 million tied directly to COVID-related ARPA usage.
When asked whether the city was in good financial shape, Trippi replied, "You're in very good shape." Mayor Hine and several councilmembers congratulated staff on the result and said they would act on the audit recommendations.
Next steps: council members asked for follow-up on recommended remediation steps, including bringing internal reports more current and reviewing long-standing escrow and deposit balances that may need to be returned per state law.
