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Council questions audit delays and requests governance letter from auditors
Summary
Auditors told the Alma City Council that audit timing delays were due to staffing turnover and regional audit backlogs and that material misstatements were not apparent; council members pressed for the audit firm's communication-to-governance letter and for training on reading financials.
Alma City Councilors pressed the outside audit team on timing, scope and adjustments in the city's combined audits for multiple years. Blake Burton of the audit team said the firm's work focused on material accuracy and analytics, and explained delays were tied to auditor turnover and a regional backlog.
"The goal of the audit, I guess, is a couple of things. 1, to make sure that your notes are materially stated," said Blake Burton, the audit representative. He described the audit as relying on sampling and analytics to confirm that the city's financial statements are materially correct, not a line-by-line forensic review. Burton said any adjustments the firm recommended were typical for small cities and could be addressed with better accounting setup and controls.
Council members asked whether the city had received the firm's separate communication-to-governance letter describing findings and recommended adjustments. Burton said the letter normally accompanies the audit package and offered to re-send it if any councilors had not received it. The mayor and several members also asked whether the firm provides training so councilors can better interpret the P&L and balance-sheet items; Burton said the firm can offer guidance though such training had not historically been provided.
The council did not take formal action on the audit today but directed staff to compile specific questions and to ensure any communication-to-governance letter accompanies the audit packet for the record.
