Town of Rising Sun audit returns clean opinion; auditors flag ARPA funds for spending plan

Auditors hired by the Town of Rising Sun told the mayor and commissioners on March 14 that they issued a clean opinion on the town's 2022 financial statements and found no significant audit findings.

The auditors, Steven Rock and Kim Stank, said their governance letter identified standard audit risks — improper revenue recognition and management override of controls — but that the audit was designed to mitigate those risks. "We did not have any significant findings, matters, or issues to address with you today," one auditor said, adding the town implemented several GASB standards that did not materially affect the statements.

In a review of the financial statements the auditors reported government-wide assets of about $7,000,000 and liabilities of about $3,600,000, leaving a governmental net position of roughly $3,300,000. On the business-type side they reported about $26,000,000 in assets and $21,500,000 in liabilities, for a business-type net position near $4,400,000. The general fund snapshot showed roughly $3,000,000 in assets, $1.7 million in liabilities and a fund balance near $1.5 million.

The auditors also pointed to one change affecting the town's balances: an increase in unearned (restricted) revenue of about $1,300,000 tied to American Rescue Plan Act (ARPA) funds. "I don't know if you guys have thought about how you're going to actually spend those funds," one auditor said, urging the board to consider spending plans and reporting procedures.

Mayor Marion and town staff thanked auditors and staff members for their work. The auditors said management had posted adjustments identified during the audit and that the internal controls report contained no significant findings.

The board did not take any formal action on the audit at the meeting; the auditors concluded their presentation and left planning for ARPA spending and reporting to town staff and elected officials.