Oak Ridge audit: independent firm issues unmodified opinion, no reportable findings for 2023

Julie Hayes of Culture and Justice presented the results of the city's 2023 audit and told council there were no reportable findings: the firm issued unmodified opinions on the financial statements, internal control reporting and the single-audit for federal programs.

Hayes said the audit covered the fiscal year ended June 30, 2023, and that the audit report was issued on April 15, 2024. She told council that the engagement team is independent of the city and described two general audit risks that apply in every audit: risks over internal control and the risk of improper revenue recognition. She said the firm performed procedures to address those standard risks and had no disagreements with management or corrected or uncorrected misstatements to report.

Hayes also described additional communications provided to council and the budget and finance committee, including nonattest services the firm performed (preparation of the financial statements and notes) and internal-control matters that did not rise to reportable audit findings but warranted management attention. She noted the audit was delayed relative to prior years because the city converted its general ledger to the Kayenta financial system, which extended the fieldwork schedule.

Council members thanked the auditor for the work; the budget finance committee chair and other members expressed appreciation for the clear presentation. No formal council action was required on the audit presentation beyond receiving the report.

What was said: "There are 3 reports that we issue as part of the audit...there were no issues identified, no findings, they were pleading unmodified opinion," Hayes said. She further explained that the firm's required communications include a standard letter describing the audit scope and any internal-control deficiencies identified for management attention.

Next steps: staff and council will consider the auditor's internal-control communications and continue to implement recommended process improvements; no reportable weaknesses were disclosed in the formal audit opinions.