Auditor: no material weaknesses found; board hears revenue dip tied to industrial loss

Jeff, the auditor, reported to the board that the most recent audit showed no material weaknesses, no significant deficiencies and no instances of noncompliance. He pointed members to the packet (page references cited during his remarks) and said two accounting entries included in the report originated from the State of Kentucky.

"Pleased to report that there was no deficiencies, weaknesses, or significant deficiencies in this audit," Jeff said, summarizing the internal-control findings. He also noted contribution percentages and pension-match lines in the packet, including a previously higher contribution in 2021 and a recent level around 19.7 percent, and an insurance match noted at 3.39 percent on a specific payout line.

Board members discussed operational implications. The chair and others said long-term payables are declining year over year but flagged that the planned wastewater treatment plant will add future debt service. Members attributed a portion of the reported decline in operating revenues to the loss of a large industrial customer in Lincoln.

Jeff closed by noting the representation letter had been signed, there were no disagreements with management, and he expected to return in about a week and a half.

Why it matters: a clean audit preserves confidence in the municipality’s financial statements and affects budget and rate-setting decisions; the forthcoming wastewater plant and the loss of an industrial customer could constrain future operating revenues and debt capacity.

The board did not take formal action on the audit during the meeting; members were asked to review the full seven-month financial report at the next meeting.