Auditor seeks finance committee direction on reversing audit adjustment and transfers affecting Fund 28

During the auditor’s monthly report March 4, the LaSalle County auditor told the finance committee that audit work produced an adjustment that left a substantial accounts-receivable balance. The auditor said the auditors recommended moving the amounts back into the funds via transfers rather than a retroactive audit adjustment.

"As you all get your fund status report, I mean we can transfer that money per the auditors and their suggestion is to transfer that money back to all of those funds. I just need direction from you which is what I had asked for last month," the auditor said. The committee asked that the auditor provide a fund-by-fund list with dollar amounts and the proposed journal entries before taking action.

Committee discussion indicated the net effect of the auditors’ adjustment put Fund 28 in the red by about $630,000 (committee statements also referenced the total journal entry possibly exceeding $1 million, but the committee repeatedly asked for documentation). Committee members asked the auditor to supply an itemized spreadsheet and the proposed journal entry so the committee could review which funds would be affected and whether transfers would put any funds at risk.

The auditor said she would scan and provide the Excel/PDF listing showing amounts by fund. Committee members repeatedly requested to see the exact journal entries and asked the auditor to confirm which funds would receive transfers and the amounts. There was no formal vote to perform transfers at the meeting; the committee asked for the documentation and said they would then approve transfers after review.

Ending: The auditor will provide a detailed list of funds and proposed journal entries to the committee in advance of the next meeting; the committee did not authorize transfers without receiving those details.