Title
Follow Up to the Annual Comprehensive Financial Report (ACFR) and Independent Audit for Fiscal Year Ended June 30, 2024
PURPOSE: The purpose of this agenda item is to fulfill the requirement under 20 NCAC 03 .0508 by adopting a resolution responding to and addressing internal control weaknesses identified in the financial reporting by the independent auditors.
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Department
DEPARTMENT: Finance
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Council Direction
COUNCIL DIRECTION:
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Information
INFORMATION:
During the FY2024 audit, the Town’s independent audit firm identified a material weakness in internal controls. Errors in the Town’s opening balances for the fiscal year ended June 30, 2024, required adjustments to correct those errors.
Management concurs with the audit finding and has prepared a response for the Town Council’s review and signatures.
Pursuant to 20 NCAC 03 .0508, the governing body is required to develop a "Response to the Auditor's Findings, Recommendations, and Fiscal Matters," signed by a majority of its members, and submit it to the Secretary of the Local Government Commission within 60 days of the audit presentation.
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Fiscal and Staff Impact
FISCAL IMPACT: There is no budgetary impact associated with this item.
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Recommendation
RECOMMENDATION: The Town Manager recommends that the Town Council adopt the resolution identified in the audit for the Fiscal Year Ended June 30, 2024. This adoption ensures timely submission of the Town’s official response to the Local Government Commission and demonstrates the Council’s commitment to addressing audit findings and strengthening financial oversight.
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