Board receives FY22–24 audits; auditors flag modified opinion for water and sewer funds

Richardson & Company managing partner Ingrid Shifeline told the Rancho Murieta Community Services District board on Aug. 26 that the firm issued a modified opinion on the district’s water and sewer funds because auditors could not fully quantify developer-donated infrastructure recorded in fiscal years 2023–24. "We issued what's called a modified opinion on the water and the sewer funds," she said.

Shifeline said the district recorded developer-donated infrastructure for FY23 and FY24 but auditors need the district to "go back and evaluate whether there's some additional infrastructure that needs to be recorded." She reported no new internal-control findings in the audits but said three material weaknesses remain under correction, including year-end close procedures and the donated-infrastructure item. Shifeline also described improvements: adjustments made during the audit fell from about 40 in FY22 to four in FY24.

After auditor remarks and brief public questions about reserve balances, board members moved, seconded and voted to receive and file the FY22–24 audit reports. The board’s action was limited to receipt and filing; staff said they will continue to follow up on the carried-forward findings and provide updates as the remaining issues are resolved.