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External auditor issues unmodified opinion for Junction City, flags control weaknesses in journal‑entry process
Summary
External auditors reported an unmodified opinion on Junction City's financial statements but recommended stronger internal controls around journal‑entry approvals and ERP security roles; the city will complete a single audit for federal spending later (single‑audit threshold exceeded $750,000).
An independent audit partner told the Junction City Council on Jan. 13 that Sensaba issued an unmodified opinion on the city’s financial statements for the year, indicating the statements are fairly stated. ‘‘We did issue an unmodified opinion for the city, which is what you're looking for,’’ the auditor said, adding that the city reports on a cash basis (an "emphasis of matter" noted in the report).
The auditor also identified internal‑control recommendations focused on journal‑entry reviews and ERP security roles. The firm recommended the city close a control loop so journal entries cannot be processed outside the documented review and approval workflow in the Tyler Technologies system and suggested a project to map job duties and remove unnecessary system access. Auditor Brenda Bartlett summarized the recommendation: ‘‘All we're really recommending is that they close that loop and set the security roles up so that that process can't go outside, that it's always the same process.’’
Council members asked for follow‑up, and staff said the city will provide updates on those items. The auditor also said a separate single audit of federal awards will follow because federal expenditures exceeded the $750,000 threshold and that the single‑audit testing was expected to be completed later, targeted for mid‑February.
