Manhattan commission receives 2023 audit; auditors issue unmodified opinion with one finding on subrecipient reporting

The Manhattan City Commission on March 4 received the city’s 2023 audit after a presentation by the director of finance and the municipal audit board. The independent auditors issued an unmodified (clean) opinion for the city’s financial statements and identified one finding related to timely reporting of subrecipient information to federal authorities.

Irina Grama Veil, identified in the meeting as the city’s director of finance, presented the audit materials prepared with external accountants and auditors. The report includes the independent auditor’s report and the schedule of federal expenditures; Grama Veil told the commission that auditors from BT and Co. of Topeka issued the unmodified opinion and that the city provided a corrective-action plan addressing the single finding. The finding — similar to an item in the 2022 audit — concerned the timely filing of reports related to grants where the city contracts with subrecipients. The finance director said the city is back on track with filings and provided a management response and corrective action plan.

The audit presentation noted major federal programs that accounted for most federal spending in the audit year, including an airport improvement program tied to a runway extension. Grama Veil said the city is preparing for the 2024 audit and expects auditors to begin fieldwork in July with a goal of completing the audit by September. The city also briefed the commission on an upcoming enterprise-resource-planning (ERP) system implementation; staff said user-acceptance testing is underway and targeted "go-live" is July 1.

Eric Higgins, chair of the Municipal Audit Board, reviewed the board’s work with finance staff and auditors and said changes to the city’s internal checklists and the new ERP system should reduce the chance of repeat findings. "We're confident, feel confident we're back on track," Higgins said, noting the board’s suggestions to tighten the subrecipient acknowledgement and tracking process.

The commission voted 4-0 to receive the 2023 audit results. The motion to receive the audit was moved and seconded; roll-call votes were recorded as Commissioner Minton — yes; Mayor McCullough — yes; Commissioner Opelt — yes; Commissioner Mota — yes. No additional action was taken at the meeting beyond receipt of the audit.

The audit packet included schedules of federal expenditures and the independent auditor’s management letter. City staff noted that a new accounting pronouncement related to leave accrual reporting will be implemented as part of ongoing audit preparations.