Cleveland Heights councilors and advisor flag audit backlog while discussing 2025 appropriations ordinance

Cleveland Heights councilors used the Committee of the Whole meeting March 17 to scrutinize the proposed 2025 appropriation ordinance and hear an external advisor’s review of reconciliations and outstanding audit work.

Frank Dyke, an outside advisor and CPA, told council he had reconciled department‑level operating budget data to the appropriation ordinance and found two items that required clarification: capital work and engineering costs appearing in the Planning, Neighborhoods and Development department rather than Public Works, and a department‑number mismatch (the ordinance showed department 8401 while the administration’s worksheet used 8411). Dyke said the mayor indicated the ordinance is correct and that the administration had updated its system to match the ordinance.

On audit timing, Dyke warned the city must file unaudited 2023 financial statements with the State of Ohio. He told council the city missed an earlier February 28 filing target and that “it’s imperative that that’s gotta be something the city needs to focus on,” noting that an unauditable designation triggers formal notices and additional administrative consequences. Dyke said it may be possible to obtain a short extension but urged filing as soon as possible so the city is not deemed unauditable.

Council members raised process and staffing questions. One speaker urged monthly finance‑department updates and suggested an assistant finance director and replacement of an antiquated financial system. Council members also discussed coordinating proposed budget amendments through committee to minimize confusion and avoid multiple, conflicting on‑the‑floor amendments.

During the meeting members discussed a proposed set of amended whereas clauses to the appropriation ordinance that references Ohio law; the transcript records council members agreeing to replace the last whereas clause with two clauses, one that cites Ohio Revised Code section 5705.38, which requires passage of an annual appropriations measure by April 1.

Dyke also reminded council that American Rescue Plan Act (ARPA) funds are not part of the 2025 appropriation ordinance because those funds were budgeted last year. He recommended the administration finalize capital‑asset records so auditors can finish their work; a stated priority was getting the unaudited 2023 statements to the state so an audit can proceed.

The appropriation ordinance remained under discussion in committee; the transcript does not record a final council vote on the ordinance at the Committee of the Whole meeting.