by SC Emilie Alfino
Deputy City Manager/CFO Steve Chaipel and auditors Chris Kessler and Rob Willems of CliftonLarsonAllen LLP presented the Fiscal Year 2023 Annual Comprehensive Financial Report to Sanibel City Council. They covered the audit scope and process, audit opinions and communications, and insights and emerging issues for 2024.
In summary, there were two material weaknesses noted in the Financial Statement; in the Federal Awards and State Projects, there was one significant deficiency noted.
Kessler explained that the two material weaknesses found had to do with adjustments made, even though they were later corrected. The one significant deficiency was not material but was related to the timing of reporting. “The management team has put in place what’s needed to get back on schedule in the coming year,” Kessler said. “We had no discrepancies with management along the way. Everyone we work with is professional and a pleasure to work with.”
Chaipel said, “We knew 2023 was going to be a heavy lift. We still had 10 percent more income but 20 percent more expenses. I would expect this to increase in 2024 and beyond.”
“I’m confident the staff has taken the proper steps so these [discrepancies] don’t happen in the future,” said Vice Mayor Mike Miller. Miller requested that in the future, staff report at each City Council meeting beginning in January on the status of the closing statements, “just so we know what’s going on.”
The budget is $182 million because of grants and other opportunities coming in, Chaipel noted. Said Councilmember Holly Smith, “It takes years of chipping away at understanding because this is very complex. The City Manager and CFO are putting in guard rails to make sure we can do better.”
“This is much more than a financial project these days,” Chaipel continued. “Standards are increasing. The compliance findings were related directly to grants. This is one of the main reasons we asked for additional positions. I know we can handle it going forward.”