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Auditors tell Elgin council internal-control gaps, pooled-cash use left capital projects in deficit; manager outlines clean-up plan
Summary
External auditors reported multiple internal-control weaknesses including pooled-cash monitoring problems and a roughly $6 million capital projects deficit. Council members pressed why the city received an "unmodified" audit opinion despite the findings; the interim city manager said staff will focus on remediation and monthly reporting and that a
Auditors for the city of Elgin told the City Council that growth, more capital projects and increased grant activity have strained the city’s accounting staffing and internal controls, leaving the capital projects fund in a deficit and pooled-cash arrangements insufficiently monitored.
The auditors said the city’s capital projects fund ended the year in a deficit position of about $6,000,000 and that the pooled-cash practice — where multiple funds share common bank accounts — risked one fund unknowingly covering another. The audit team also reported recurring findings on Public Funds Investment Act compliance, bank reconciliations, capital-asset tracking and upcoming changes to accounting for compensated absences that will increase recorded liabilities for…
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