The City of Richmond’s Commission recently heard from the City’s independent auditor that the year’s financials earned an unmodified or clean opinion, the highest level of assurance that can be given to a city.
John Manning, audit partner with Patillo, Brown & Hill (PB&H) shared the results of the audit for fiscal year 2019 with the City Commission at the February 27, 2020 Commission meeting. Mr. Manning noted the excellent work of the City, the Commission, and staff as it related to coordination of resources and information that was necessary for their firm to conduct the City’s audit and provide an opinion.
As part of the Firm’s test of controls, they performed 15 fraud interviews and examined the practices of cash handling departments. Mr. Manning was pleased to report there were no findings of fraud or other discrepancies. Mr. Manning added “The City staff does an excellent job of putting [the financial statements] all together.”
Mr. Manning also shared that the General Fund ended the year better than anticipated, and exceeded the fund balance policy requirement of 90 days, which is a reserve that is available to meet emergency needs or unforeseen items necessary to provide for citizens. Unlike a standard business, a municipality is encouraged to have a reserve of either 25% or 90 days of Fund Balance to meet the needs of its’ citizens during catastrophic events, like a hurricane.
The City of Richmond ended fiscal year 2019 with a clean audit opinion indicating that it has excellent accounting practices and budget processes and that it continues to be a good steward of public funds by maintaining a strong financial position