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Council receives 2023 audit; auditors flagged training and reconciliations
Summary
The council received the 2023 audit, which contained one noncompliance finding and several routine recommendations; the council voted to place the audit on file.
Shelby City Council voted on Jan. 20 to receive and place the 2023 audit report on file after a presentation by the city’s finance staff. The auditor’s management letter included one noncompliance finding for required public‑records training for some elected officials and several recommendations related to IT access, accrual reporting and bank reconciliations.
The presenter said the public‑records training shortfall affected a small number of officials and that those trainings have since been completed. The auditor also recommended multifactor authentication and other IT access controls; finance staff said they have engaged a new IT firm and are working to address the recommendation.
Other audit recommendations covered the city’s financial reporting accruals and the posting of budget receipt adjustments to the accounting system; the finance director said one posting issue occurred when additional receipts were received and the county auditor was not notified in time to adjust revenue budget figures. The municipal court’s lingering monthly bank reconciliation differences — cited historically — were reduced to two small, material‑immaterial balances (about $613 and just under $2,500), and staff said a journal entry was planned to clear those items.
Councilman McLaughlin moved to receive the 2023 audit and place it on file; Councilman Cutler seconded. The roll call recorded votes in favor and the motion passed.
The items identified in the management letter will be followed up by staff; no sanctions or ordinance changes were announced at the meeting.
