Auditors give Farmington an "A" grade
FARMINGTON — The city of Farmington received a clean audit report for fiscal year 2017, which ended June 30.
The City Council accepted the audit report during a work session this morning at City Hall. The meeting can be viewed at fmtn.org.
During the work session, Mayor Tommy Roberts asked the auditors to give the city a letter grade to help members of the public understand how the city fared on the audit.
The auditors gave Farmington an "A" grade.
"That grade's consistent with what we're used to," Roberts said.
Matt Bone, principal at the audit firm CliftonLarsonAllen LLP in Albuquerque, said the city hires the auditors to give an opinion about whether the financial statements are fairly stated.
The firm issues four reports. The first report looks at the financial statements. The city received an unmodified, or clean, report.
"That is the highest level of opinion that you can receive on the financial statements," he said. "What we're saying is that, in our opinion, your financial statements are fairly stated."
Other reports looked at the internal control of finance reporting, compliance with the Passenger Facility Charge Fund and compliance with federal award reporting requirements. The city received clean reports for all three, however there were two findings related to the federal awards.
During fiscal year 2017, the city didn't include three loans or grants in its federal expenditures schedule. Two of those three loans were awarded by the U.S. Environmental Protection Agency to the state, which then awarded them to the city. The auditors say a lack of internal controls led to the finding.
"It did not represent a pervasive issue that I would have concerns with going forward that major changes need to be done," Bone said.
The other finding was that money from the sale of a bus was placed into the wrong fund. The funds were deposited in the general fund while the grant requires the funds to be deposited in the Red Apple Transit Grant Fund.
The auditors said the city immediately addressed and corrected both findings.
Hannah Grover covers government for The Daily Times. She can be reached at 505-564-4652 or via email at email@example.com.