South Pasadena finance staff report progress on year-end close, but audit readiness and fund balances remain incomplete

City finance staff gave the Finance Commission an update Thursday on the 2023 year-end close, ongoing reconciliations and the timetable for the upcoming audit and midyear budget review.

Kelly (staff member) said the team has “been digging in and working through the 2023 year end close” and emphasized checking opening balances and correcting accounts that previously “looked a little bit wonky.” Noah (staff member) said the office has completed bank reconciliations through May and is working on June and July, leaving only a “small variance.”

The update underscored two categories of remaining work: historical asset and property accounting and several special-fund balances that require research before the audit. Kelly said staff and the auditors will review minutes and contracts for transactions that crossed fiscal years, noting that city council approvals after a fiscal year can create subsequent events the auditors will examine. “One of the last kind of big things we need to do…is making sure that those fund balances are accurate,” Kelly said.

Why it matters: auditors will test activity both during and after the audited fiscal year; unresolved beginning balances or missing asset records can delay the audit and…