Auditors give Smithville an unmodified 2024 opinion, note two repeat material weaknesses

Adam Pulley, principal in charge of the audit, told the board the firm issued a clean opinion on Smithville’s 2024 financial statements and that "we did issue, an unmodified, opinion" — the firm's highest assurance for the city's reporting.

Pulley said the auditors issued an "internal control communication" that identified two items classified as material weaknesses carried over from prior years. He described the first as assistance provided by the auditors in preparing the financial statements, which creates a condition where the external auditors cannot be considered part of the city's internal control structure. He described the second as audit adjusting entries the auditors needed to make to bring amounts into conformity with accounting standards. "The city did review the financial statements in their entirety, and ultimately, prove what was issued," Pulley added, noting the findings are common among municipalities of Smithville’s size.

Board members asked how Smithville compares to other municipal clients in the firm's portfolio. Pulley said his team primarily serves governmental entities and listed three common concerns — the two items above and, frequently, limited segregation of duties — but emphasized that "nothing surfaced that was alarming" in Smithville’s audit. City staff said they have been collaborating with the auditors and expressed interest in mitigating the reported risks in future years.

The presentation closed with Pulley thanking city staff for their cooperation during the audit process and taking questions from aldermen. No formal action was taken at the meeting on the audit findings.