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Keystone Heights council accepts FY2023–24 audit and directs staff to submit documents to state
Summary
Council accepted the independent auditors' unmodified opinion on the city's FY2023–24 financial statements, reviewed two repeat findings, and approved the city manager's response and signatory steps to submit the audit package to the state before the Jan. 15 deadline.
Auditors from Powell & Jones CPA presented the FY2023–24 independent auditors' report to the City Council on Jan. 5, reporting an unmodified opinion and highlighting the city's financial position: total governmental assets of about $2.64 million, restricted cash around $1.1 million, and an unassigned general-fund balance of about $921,000 (roughly 10 months of operations).
Caleb Perla, who assisted with the audit, told the council that in their opinion "the financial statements present fairly, in all material respects, the financial position of the City of Keystone Heights as of and for the year ended Sept. 30, 2024." The auditors also reported two repeat findings: an end-of-year accounts-receivable adjustment (Finding 2024-001) and actual expenditures that exceeded the final general-fund budget by roughly $49,000 (Finding 2024-002). Auditors recommended improved ongoing accounts-receivable controls and timely budget amendments.
City staff described actions already under way: working with finance staff on the accounts-receivable process, reestablishing regular finance-and-budget meetings to monitor expenditures, and preparing a timely request-for-proposal to hire next year's auditor. Council moved to approve the audit package, authorized the mayor and city manager to sign the management-representation letter and submission documents, and directed staff to file the package with the state joint-audit committee by the Jan. 15 guidance date to avoid fiscal ramifications.
Council members thanked the audit team and city staff for resolving prior-year issues and noted the city's strong unrestricted and proprietary-fund positions (the cemetery fund reported an operating surplus). The council approved the audit documents and associated letters; staff said they will post the final report to the city's public records and pursue the RFP process for the next audit year.
What the audit found: auditors issued no new findings beyond two repeats from prior years, and staff reported one corrected prior finding in record-keeping. Council action: approved the audit documents and instructed the mayor and city manager to sign and submit the report to the state.
Next steps: staff will pursue an RFP for next year's audit, continue internal-control improvements and monitor budget-to-actual activity through the year.
