TITLE: Title
Finance Performance Indicator of Concern Letter for FY 2021 Audit
PURPOSE: The purpose of this agenda item is to brief Town Council on a Finance Performance Indicator of Concern Letter from the Local Government Commission related to the FY 2021 Audit
body
DEPARTMENT: Finance
CONTACT INFORMATION: Arche McAdoo, 919.918.7439
INFORMATION: On April 7, 2022 the Finance Officer received an e-mail from Joe Futima, Financial Analyst, State and Local Government Finance Division, Local Government Commission, inquiring about the Town's response to a Financial Performance Indicator of Concern Letter (FPICL) regarding the late submission of our audit for the Year Ending June 30, 2021. Before we can issue any debt, the Town must submit an adequate response and identify steps to prevent any recurrence.
The audit was due to the Local Government Commission on December 1, 2021, five months and one day from the fiscal year end; however, the audit was not filed until January 24, 2022. The reason for the late filing was because of the need for a single audit identified in late November 2021 by independent auditor's management review of the audit file due to errors in the preliminary Schedule of Expenditures of Federal and State Awards. Normally this Schedule would be reviewed by earlier in the audit process and before firm's management reviews audit files. The manager on the team assigned to our account left the firm immediately after the field visit work began in early September. We were under the impression that the audit was proceeding on schedule and the firm had made the necessary realignment of staff resources to get it completed on time.
Under 20 NCAC 03.0508, the independent auditor is required to notify the governing board and present, during their presentation, any "significant deficiencies, material weaknesses, other findings or if the auditor determined that Financial Performance Indicators of Concern were id...
Click here for full text