City finance director: 2024 audit delayed pending Manhattan Housing Authority filing; draft due to Moody’s soon

Manhattan Finance Director Rena Nail told the City Commission on Tuesday that the city’s 2024 financial audit remains in review because the Manhattan Housing Authority’s component audit has not yet been completed, and she described steps the finance department is taking to finish and present the audit.

Nail said the city’s financial statements and notes are in the review phase with auditors and that the Housing Authority’s outstanding audit prevents the auditor from finalizing the city’s report. “We cannot incorporate or finish the audit without the Manhattan Housing Authority’s audit,” she said, and added staff expect to complete the city portion within the first week or so of October if the Housing Authority’s auditors deliver their work on schedule.

Nail told the commission the city will present the completed audit to the municipal audit commission and then to the commission if the municipal audit commission raises no issues. She said the city intends to provide a draft of its financials to Moody’s by Oct. 10 to support ongoing credit‑rating work.

Nail also discussed operational items tied to audit timeliness: the city recently transitioned to a new financial software platform and she recommended extending the current auditor contract (BT and Co.) because switching auditors during a software transition would complicate the next audit. She said the city will secure a license to give auditors access to the new system and will schedule debriefings with auditors to identify process improvements.

Commissioners asked about the municipal audit commission (a city board) and the possible consequences of delayed filings; Nail said timeliness is important for federal reporting and for Moody’s access to timely drafts but did not identify a specific sanction beyond potential bond‑rating review if delays persist. She said the city typically issues an auditor request‑for‑proposals about every four years and that the current audit firm’s contract ends after the 2024 audit.

No formal commission action was taken at the work session; staff said they will return with final audit materials when the Housing Authority’s component audit is complete.