by SC Reporter Emilie Alfino
As required by state statute, the City of Sanibel engaged the services of CliftonLarsonAllen LLP (CLA) to audit its Annual Comprehensive Financial Report (ACFR) for the fiscal year ending September 30, 2025. Each year, the city’s external audit firm conducts testing of its financial activity, reviews prepared financial statements in coordination with those tests, and provides commentary on the strength of internal controls over financial activities.
CLA issued an unmodified (“clean”) opinion on the City’s financial statements, the highest level of assurance auditors provide. “It was a very successful audit,” said Steve Chaipel, CFO and Deputy City Manager.
During the audit procedures, CLA identified three reportable findings that relate to overall financial reporting. Based on the findings, the City has adopted a new administrative policy regarding grant accounting and reporting.
The reportable items the auditors found were:
• The auditors proposed adjustments to revise the City’s financial statements at year-end, involving recording accounts payable amounts and recording receivables and revenue or deferred inflows of resources related to grant transactions. The City’s internal controls did not prevent or detect the errors in a timely manner, according to the audit.
• Regarding the Hurricane Beach Recovery Program grant, the audit found that the City’s quarterly progress reports did not include interest earned on advance payments.
• For the Hurricane Wastewater Assistance grant, the audit noted a significant deficiency in internal control over compliance. The audit stated that the quarterly progress report for 2025 Quarter 1 was not filed within 20 days of the period-end.
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