Baker Tilly presented the results of the 2024 financial audit for Seattle City Light at the Aug. 1 committee meeting, issuing an unmodified audit opinion and reporting no material weaknesses or significant control deficiencies.

Aaron Worthman, lead audit principal for Baker Tilly, told the committee the audit was “very straightforward” and that the firm did not identify errors or adjusting journal entries during its work. “At the end of this year's audit, your financial statements have received an unmodified opinion,” Worthman said. Baker Tilly reported that the engagement included about 1,200 audit hours and that fieldwork concluded April 4, 2025.

Auditors described the largest audit emphasis areas as information technology controls, capital assets, revenues and receivables, accounts payable and payroll, environmental liabilities, and other material estimates. Worthman listed the financial statement items the auditors considered the most sensitive: the net pension liability, self‑insurance claims, allowance for doubtful accounts, net other post‑employment benefits, unbilled revenues and environmental remediation liabilities.

The auditors said they did not encounter significant difficulties during the audit and reported that management provided a representation letter covering key audit topics. The firm confirmed independence and said it performs no non‑attest services for City Light. The auditors offered routine, low‑severity recommendations related primarily to information technology controls and encouraged continued diligence on cyber security.

Why it matters: an unmodified opinion is the standard assurance that audited financial statements present fairly in accordance with generally accepted accounting principles and gives the council a formal, independent verification of City Light's financial reporting and controls.

Committee members thanked the auditors and City Light staff. In the discussion that followed, auditors and council members highlighted cyber security and external contracting fraud as persistent industry risks. Worthman said auditors focus significant testing on journal entries and use data analytics to address the risk of management override of controls.

Ending: The committee accepted the audit briefing and had no formal committee action on the audit itself; the auditors and City Light staff will continue to address IT control recommendations and cybersecurity risk as part of ongoing operations.