Cape council receives annual audit report with no deficiencies found

The Cape Girardeau City Council received the city’s annual audit report for the fiscal year (FY) ending June 30 on Monday, Feb. 3, at City Hall.

Jeff Stroder of Beussink, Hey, Roe, and Stroder LLC presented the audit’s findings to the council. He said they gave three reports to the council of the audit.

Stroder said in the first report that it is their opinion that “the net position of all the funds of the city are fairly stated”. He said it is an “unmodified” or “clean” opinion.

“That’s the one you want on your financial statements,” Stroder said.

He said the second part of the audit report did not find any “weaknesses or deficiencies” in the city’s internal controls.

Stroder also identified whether the city was in compliance with government auditing standards such as laws, regulations and grant agreements that are considered financial.

“We found no instances of noncompliance with any of the testing that we perform,” he said.

Stroder also added that when working with some of their clients, sometimes they will recommend changes that need to be made before the issuing of a clean opinion. He said to his “recollection” they didn’t have to make any significant recommendations or even any recommended changes to the city’s finances.

Mayor Stacy Kinder responded to the clean opinion by saying that “is really great news”.

Stroder moved on to the city’s last and third report, which is required if the city spent more than $750,000 of the federal government’s money. He said the city expended “a little over $11.8 million” federal dollars and had to test a certain percentage of the dollars, which included $8.9 million for the Airport Improvement Program, and coronavirus expenditures that were around $1.5 million.

Stroder said they had to test whether the way the money was accounted for and spent was in compliance with the federal government’s requirements. He said their “unmodified opinion” shows they found no instances of “noncompliance”.

Stroder also said they found no deficiencies in the city’s internal controls related to compliance requirements.