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Water Utilities Trust accepts FY 2024 audit after accounting adjustments from ERP changeover
Summary
Trustees accepted the FY 2024 annual financial report after auditors issued an unqualified opinion following accounting adjustments tied to a recent Oracle ERP implementation; trustees praised staff for managing the transition.
The Oklahoma City Water Utilities Trust on Sept. 23 accepted the FY 2024 annual financial report after auditors issued an unqualified opinion following accounting adjustments tied to the utility’s recent ERP implementation.
Alex, controller finance for the City of Oklahoma City, told trustees that the auditors "issued the opinion" and that "the financial statements referred to above present fairly in all material respects the respective financial position." He said the auditors also issued "an overarching finding for the city and some of the various trusts" related to timing differences that required adjustments moving certain transactions from FY 2025 back into FY 2024.
The finding reflected transactions for services rendered in FY 2024 that were recorded in FY 2025 because of the city's transition to a new Oracle system. Alex said those items "needed to be journalized with an accounting entry back to '24," and that after the adjustments the FY 2024 financial statements were materially correct. Vanessa Aguilar of the utilities department provided a numeric summary, saying the trust’s overall net position increased by approximately $125,000,000 for FY 2024, operating revenues were approximately $451,900,000, operating and nonoperating expenses were about $330,800,000, and capital contributions totaled about $4.5 million.
Trustees discussed the finding on the record and were told the issue resulted from timing and reporting gaps created by the ERP changeover rather than missing revenues or suspected manipulation. Alex said extracting legacy reporting from the old system and rebuilding reports contributed to the timing errors and that staff had made the needed adjustments.
Trustees voted to accept the annual financial report. Several trustees and staff thanked the finance and utilities teams for their work during the system transition.
Votes at the meeting recorded the acceptance of the FY 2024 annual financial report as approved by the trustees.
