Jenkins audit: auditor issues unmodified opinion but flags future impacts from summer events

The City of Jenkins received an unmodified (clean) audit opinion for the period ending June 30, the auditor told the city council at a special Sept. 3 meeting.

Mr. Gooch, the auditor presenting the report, said the firm "stated that the financial statements that's presented, are presented fairly non material respects." He described the components of the audit package — the auditor's opinion letter, basic financial statements (governmental and enterprise funds for water, sewer and solid waste), notes, required supplemental information and a report on internal control and compliance.

Mr. Gooch said the firm formed an unmodified opinion under generally accepted government auditing standards and the relevant standards for audits of governments. He also said the audit includes an "emphasis of matter" noting that recent regional flooding and other events could change how financial statements appear in coming years; the emphasis does not change the current opinion but signals an issue for future reporting.

The auditor flagged recently implemented accounting standards, including changes to lease accounting and disclosure requirements for subscription-based technology arrangements, and recommended that city management periodically review the lease portfolio and financial policies so accounting presentations remain current with new standards.

Councilmembers asked for clarifications on several footnotes and the packet page numbering; Mr. Gooch offered to walk through specific pages and the council agreed to follow up with management to ensure the lease and policy reviews happen as recommended.

The council responded positively to the audit presentation, with multiple members describing the report as a "clean" audit and the chair thanking the auditor for the work. The council did not take a formal vote on the audit presentation itself during the meeting.