Stonecrest finance director reports strong 2021 audit, outlines policy changes and ongoing audits

Stonecrest Finance Committee Chair Tammy Grimes convened the committee on May 21, 2025, where Finance Director Lakisha Ames reported that the city’s fiscal year 2021 audit has been completed and characterized as “very good,” and outlined a package of policy and staffing changes intended to bring the city into compliance for future audits.

Ames told the committee: “The FY ’21 finance audit was completed. We had an overall very good audit. Our revenues that were taken in for the 2021 year were $17,800,000. Our expenses were $9,000,000, so we had a lot of savings there.” She said the total fund balance as of Dec. 31, 2021, was $18,200,000 and that revenue for that period had increased by 24.7% while expenses rose 2.64% (all figures are for the 2021 fiscal year and were reported as such).

The audit report included recommendations to adopt or revise several city policies. Ames said purchasing, purchasing-card, and financial-management-and-reporting policies were revised in March 2025 and that the audit recommended further work on an information-technology policy, a record-retention policy, a whistleblower policy and a conflict-of-interest policy. “We’re putting in place policies and procedures that will streamline how finance operates going forward,” Ames said, adding those controls are intended to “ensure that we’re compliant.”

Ames described operational changes the finance department is pursuing to address internal-control recommendations: hiring staff with accounting, grants and procurement experience, meeting monthly with external auditors and keeping an accounting firm on professional-services standby to assist with journal entries or other adjustments. She said the city is also working with a forensic accountant identified in the transcript as Marshall Mitchell to help resolve audit issues and maintain progress on later-year statements.

Committee members repeatedly framed the FY2021 audit as a retrospective snapshot: the numbers Ames reported are as of Dec. 31, 2021, and committee discussion emphasized that the city’s finances and staffing have changed since then. Ames said the city is “on track” to complete audited financial statements for 2022 and 2023, and that staff are actively assembling supporting documentation for external auditors.

Discussion at the meeting touched on a prior disagreement with an external audit opinion (transcribed references to the audit firm’s name varied in the record). Committee members said they worked with the state department and the city’s forensic accountant to reconcile differing opinions and that litigation and indemnity issues tied to a third-party vendor remain matters for executive session.

Next steps identified at the meeting: finance staff will continue monthly work with external auditors to finalize 2022–2023 statements, continue implementing revised policies and return to the committee with a midyear budget adjustment for consideration in July (after June 3 work already noted in committee discussion).