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Council authorizes payment to auditors; finance director flags budget gaps and requests follow‑up fiscal tests
Summary
Council approved a transfer to pay a past‑due audit invoice (BMSS) for the 2023 audit and asked staff to present fiscal policy test results once year‑end closing is complete; finance director and city manager described additional audit‑related and accounting costs that exceeded original budget estimates.
The council approved a transfer May 5 to cover a past‑due invoice from auditors (BMSS) for the city’s 2023 audit and directed staff to reconcile related budget lines.
City Manager and finance staff reported that the firm’s expedited year‑end work after an internal embezzlement investigation expanded audit scope and staffing, producing invoices that exceeded the line‑item budget established for auditing services. The finance director asked council to transfer $169,236.75 from the general fund to the auditing line to clear the outstanding invoice; council approved the transfer after discussion.
Staff told council the 2023 audit work, additional forensic and single‑audit requirements and extra accounting contract expenditures had created several unanticipated charges across contractual services and auditing accounts. The manager and director said the finance department will reclassify several line items, address duplicated funding entries and return with a consolidated set of budget adjustments for council review.
Councilors asked for clearer, earlier notification when departments anticipate over‑budget invoices; the finance director acknowledged a communication gap and committed to more regular reporting. Staff agreed to present the fiscal‑policy “tests” (reserves, capital funding and other benchmarks) after year‑end closing numbers are fully recorded and suggested a quarterly reporting cadence going forward.
Members approved the invoice payment so the city could close the audit cycle and directed staff to return to finance committee with the fiscal tests and a proposed cleanup of affected accounts.
