Organization commended for proper financial procedures year after year
The Somerset-Pulaski Economic Development Authority (SPEDA) has extended its streak of clean audits for another year.
Madgel Miller, a partner with the London office of Cloyd & Associates PSC, presented the 2023-24 fiscal year audit report to board members Thursday at their monthly meeting. The report gives a clean, unqualified opinion — the sixth consecutive clean report for the organization — meaning auditors did not find any problems or issues with SPEDA’s financial statements or processes. Every audit report since 2019 has been clean, and each has been conducted through an open bid process.
SPEDA’s annual financial statement audit is not required by law; rather, it is an independent review the board has elected to perform each year since SPEDA was formed because members understand and prioritize the need for transparency and fiscal responsibility, SPEDA President and CEO Chris Girdler said.
The organization was, however, required to have an additional audit this year because of $1.2 million in American Rescue Plan Act (ARPA) funds it received to help develop SPEDA Commerce Park. Anytime an organization spends more than $750,000 in federal funds, Miller explained, regardless of whether those funds come directly from the federal government or pass through a state or county entity, a single compliance audit is required. This type of audit reviews whether the grant recipient expended the funds in accordance with grant guidelines.
SPEDA passed this audit with flying colors as well, Miller said.
“Anytime that you do have a single audit, we’re looking for whether the expenditures were approved according to the grant — did you follow the directions of the grant, whether you had to take bids or things like that,” Miller said. “And so all of those things were looked at … and I’m happy to say, there were no findings. So you basically got a good, clean opinion on the financial statement portion of the audit and then on the single audit as well.”
Miller praised the organization’s transparency, proper documentation, and efficient handling of grant compliance. She commended the SPEDA board for its diligent financial management and having a certified public accountant on the board, which aids in accurate financial reporting.
SPEDA Board Chair Seth Atwell asked Miller if there’s anything she would recommend the board and staff do differently, or any suggestions she might offer on improving processes.
“You know, I don’t have, and that’s kind of not normal,” Miller said. “I usually have a lot of suggestions for people just because I feel like sometimes it makes the process smoother. I think having a CPA familiar with an audit process on your board has given you all an advantage because you’re able to provide financial statements.
“Sometimes when you go do an audit, you don’t have people that know how to do that or have someone on their board that does,” Miller continued. “And it does create extra work, but I think it gives you all an advantage in that you’ve got some very clean and properly recorded books. And that’s what you’re wanting, you’re wanting to be above reproach, and that’s what it takes.”
Girdler reiterated why conducting independent audits is so important for the organization.
“I want to just remind the board as a whole that while, most definitely, we feel we have a great team in place here with checks and balances, trusting them to dot all the Is and cross all the Ts, we’re doing this though, again, not just for today, but to set that foundation for when all of us at this table are gone from here. One day, we will have this repetitive history of doing these annual audits and having them come back unqualified.”
SPEDA publishes all of its audit reports online for the public to review. The latest audit, along with others dating back to 2019, can be found at https://somersetkyleads.com/newsroom/audit-reports/.