Audit committee hears clean FY 2024 audit, flags cybersecurity and clearing-house items

Rebecca Baker, partner with KPM CPAs & Advisors, told the Rolla City Council Audit Committee on May 5 that the City’s FY 2024 financial statements received an unmodified (clean) Independent Auditor’s Report and that federal-expenditure testing also resulted in an unmodified opinion. Baker said the FY 2024 audit was delayed because Rolla Municipal Utilities (RMU) moved to new accounting software, which required additional work to include RMU as a component unit of the City audit.

The auditor highlighted specific items for the committee’s attention: completing a required Clearing House entry and adopting a formal cybersecurity and internal-controls policy. Baker also noted that any agency with total federal expenditures above $750,000 must undergo federal single-audit testing; that testing for the City’s 2024 federal expenditures received an unmodified rating. She said the completed FY 2024 audit document will be presented to the full Council on May 18.

Committee members asked questions about definitions and items in the audit, which Baker said she addressed during the meeting. Baker added that work on the FY 2025 audit has begun and that auditors will be onsite in May for field work; she said the FY 2025 audit should be completed in a timelier manner than the FY 2024 engagement.

The committee did not take formal action on the audit items at the May 5 meeting; the next step is presentation of the completed FY 2024 audit to the full Council on May 18. The Audit Committee’s next meeting is also scheduled for May 18 at 5:30 p.m.