City audit returns clean opinion but flags four recurring documentation issues

Sandy Perry of Clifton Larson Allen told the City Council on Feb. 10 that auditors issued an unmodified (clean) opinion on the city's annual financial statements and single audit report, signaling no material misstatements in the year-end results. Perry said auditors identified four findings that city staff should address: continued reliance on the auditing firm to prepare financial statements, journal-entry corrections needed before final statements, errors in federal grant expenditure reporting, and insufficient documentation for financial reviews and inventory counts.

Commissioner Abbey Sherwood pressed Perry on whether the recurring finding about auditor-prepared statements will persist; Perry said the comment will likely continue if the auditing firm prepares the statements, and recommended compensating controls during personnel transitions. Perry suggested a verification process for inventory counts—one person performs the count, a foreman signs off, and office personnel confirm mathematical accuracy. Sherwood praised Treasurer Waggoner and HR Director Swisher for their preparatory work and urged the council to resolve the recurring issues before the next audit.