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Smiths Grove audit shows $30,832 net income; auditor flags pension liability and internal-control deficiency
Summary
Auditor Drew Hensley told the Smiths Grove City Commission the city ended fiscal 2023–24 with $30,832 in net income but continues to share a sizable unfunded Kentucky pension/OPEB obligation; limited clerk staffing created a common separation-of-duties deficiency.
Drew Hensley, auditor with H&T CPAs, told the Smiths Grove City Commission on Jan. 27 that the city "is in good standing" and reported a net income of $30,832 for fiscal year 2023–24.
Hensley said the Kentucky pension obligation (OPEB) remains a large, shared unfunded liability for municipalities and advised commissioners to be aware of that long-term cost. He also noted a recurring small-city internal-control finding: limited separation of duties among the clerk staff, which auditors flagged as a deficiency but described as common in cities of Smiths Grove's size.
Mayor David Stiffey introduced Hensley and thanked him for the presentation. The Commission took no immediate policy vote tied to the audit presentation during the meeting but accepted routine financial business elsewhere on the agenda, including the December 2024 Treasurer's report.
The auditor’s comments provide context for future budget discussions, particularly if the Commission considers actions that could affect long-term pension liabilities or staffing that might address internal-control weaknesses. No specific corrective plan was adopted at the Jan. 27 meeting.
