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Local Development Corporation audit flags missed closing entries; board seeks quarterly accounting support
Summary
Glens Falls LDC accepted a draft 2024 audit that identified prior-year closing entries that were not posted. The board instructed staff to pursue periodic accounting assistance to ensure post-audit adjustments are recorded timely.
The Glens Falls Local Development Corporation accepted a draft independent audit for fiscal year 2024 that contained an internal-control finding: several audit adjustments from the prior year had not been recorded in the LDC's books, the auditor reported during the March 27 meeting.
Jean Lapper, the accounting representative presenting the audit, said the auditors issued an unqualified opinion but disclosed that a small set of prior-year closing entries and reclassifications had not been booked. Lapper said the items did not constitute a material misstatement of the financial statements but required disclosure and corrective action: "there were a few closing entries that were never booked," she told the board, and staff had a plan to correct them going forward.
Board finance staff and members described the underlying causes as a gap between bookkeeping and accounting review processes. Mark Toomey and other staff said the LDC has a bookkeeper handling day-to-day entries but that occasional accounting-level review is needed to ensure classifications and post-audit adjustments are applied.
As a remedy, the board recommended retaining accounting support to perform a post-audit review and to provide periodic (quarterly or near-audit) assistance to staff. The proposal was to confirm whether procurement rules require an RFP and, if not, obtain a written proposal and cost estimate from the accounting firm that presented the audit and/or other qualified firms and return to the board for approval.
The LDC audit summary also noted business activity in 2024, including ARPA funds received ($150,000 reported in the audit packet), sale of South Street and Elm Street properties (sales recorded with a loss that contributed to a net decrease in net position for the year) and an outstanding USDA loan and a $143,000 receivable/amount due to the City shown in the notes. The auditor asked staff to confirm those note disclosures and to post the agreed entries. The draft audit was accepted pending final release with no changes expected, the board said.
The board agreed to request a proposal for limited accounting-engagement services to support year-end closing and a short post-audit review 30–60 days after final audit entries are known. The objective is to ensure timely posting of audit adjustment entries and consistent classification of restricted/unrestricted funds going forward.
