Nevada City accepts 2023–24 financial audit; auditors note clean opinion but two correctable findings

Nevada City council on July 8 accepted the city’s 2023–24 annual comprehensive financial report and federal single audit after a presentation by the finance manager and external auditors.

Finance manager Britney introduced the audit presentation and auditors Christian Towns and Heather Flores of LSL reviewed the scope and results. Towns told the council that auditors issued an unmodified (clean) opinion on the financial statements and on the major federal program tested (highway planning and construction). He said auditors found no evidence of fraud, waste or abuse.

However, auditors identified process issues described as correctable but reportable: a material weakness in accuracy and financial reporting arising from material corrections made during the audit, and an instance of material weakness/noncompliance related to the late submission of the single audit to the Federal Audit Clearinghouse. Towns said the single audit was required to be submitted by March 31, 2025, and that the late filing produced a finding in the single‑audit report. Auditors reported total federal expenditures for fiscal year 2024 of $2,044,227 and said they would work with staff on corrective plans.

Council members thanked staff for catching up year‑end closings and discussed the need to prevent future late filings. Several members emphasized the importance of completing year‑end documentation to preserve grant eligibility and avoid federal compliance problems. After public comment (none on the audit itself), the council moved and approved a motion to receive the auditors’ report and accept and file the audit and related documents by roll call vote.

The auditors characterized the findings as correctable process issues and noted that work was underway with management to implement corrections; the accepted report will be the basis for ongoing financial management and for preparations for the 2024–25 audits.