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Auditor: Greenville financial statements receive clean opinion; reconciliation weaknesses identified
Summary
Auditors issued an unmodified opinion on Greenville’s FY2024–25 financial statements but reported material weaknesses in internal control tied to year-round account reconciliations and multiple audit adjustments.
Auditors reported an unmodified (clean) opinion on the City of Greenville’s FY2024–25 Annual Comprehensive Financial Report while identifying material weaknesses in internal control related to account reconciliations.
"The opinion on the financial statements is unmodified," auditor Laura Lynch said during the presentation, adding the firm had identified material weaknesses because "account reconciliations not being performed throughout the year" required multiple corrections before issuance. Lynch said the audit was performed in accordance with generally accepted auditing standards and government auditing standards.
City staff and the finance team described operational factors that contributed to timing and reconciliation issues. A city staff member explained turnover in the finance director’s office last May and several large capital projects — including the Emergency Operations Center and a raw water line — that produced significant in-progress expenditures and investment transfers. The staff member said some transfers occurred after the audit snapshot date and therefore do not appear in the audited numbers.
Auditors confirmed they found no instances of fraud and no instances of noncompliance. The audit report also noted estimates in the statements (largest: net pension and OPEB liabilities) and described the procedures auditors used to test revenue confirmations, debt balances and other substantive evidence. The report included a formal internal control communication and a management representation letter to be signed by management.
The presentation closed with staff assurances that most proposed audit entries were posted and accepted, no disagreements with management on accounting principles were recorded, and that management would work with auditors to address the reconciliations and material weaknesses going forward. The council did not take formal action on the report other than to receive the presentation.
