City finance staff told the Finance Committee on a March meeting that auditors are still working through issues related to a midyear migration to a new accounting system, but staff emphasized they are continuing budget preparations for fiscal 2026.

Finance staff said auditors from RHR arrived at City Hall this week and reported “slight issues” tied to the Cassell migration. “It kind of wasn't ideal that we switched, from Eunice to Cassell, especially mid fiscal year, which has caused some issues,” a finance staff member said. Staff said they would contact Cassell to help the auditors get the data they need so the audit can be completed “ASAP.”

Why it matters: audited financial statements and reconciliations are used to confirm cash balances, outstanding obligations and to reconcile accrual versus cash accounting. Committee members and at least one resident said the city should complete the FY2024 audit before finalizing the FY2026 budget; staff said they are attempting to finish the audit but did not commit to a precise completion date.

Details from the meeting: finance staff reported the city’s bank account balance was “just over $9,000,000,” compared with a four‑year average near $7.72 million. Staff cautioned that full financial position depends on reconciliations and the audit. The committee discussed cash timing: taxation revenue is recorded on an accrual basis when billed, which is why the “July to February” column in the packet matched the budget number. Finance staff noted debt service payments are due April 1 and estimated the near‑term debt service obligation at “probably a million, 2 million or something like that.”

Committee members asked whether the FY2026 budget could be adopted without completed audited financials. Finance staff said they are pushing the auditor and vendor but did not guarantee the audit would be finished before the council’s budget vote.

The meeting also included requests for clearer packet formatting — page numbers and department totals — and a reminder that earlier receipt of audit questions would have allowed staff to prepare more fully. A resident told the committee he expects the audit to be complete before the council finalizes the budget; staff replied they “caught up on three years” of audits previously and are trying to close the remaining items quickly.

Ending: Staff said the immediate priorities are finishing reconciliations for the audit with Cassell’s help and continuing the FY2026 budget workshops; staff will return to the Finance Committee and the school and council schedules in the coming weeks.