External auditor: Stafford’s 2023–24 audit nearly complete; finding expected for missed federal filing

Chris Pruitt, an audit partner with Patillo, Brown and Hill, told the Stafford City Council on Sept. 3 that the firm has finished fieldwork on the city's fiscal 2023'24 audit and is in production and review. "I have been told by my manager that I will be getting a complete product on Monday," Pruitt said. He told council members he expected the final audited report to be available to the city in time for an early-October presentation to council.

The auditor said the review will include at least one required finding related to federal grant compliance. "You will have one for sure in regards to compliance with grants," Pruitt said, referencing a federal requirement to file a data-collection form with the federal clearinghouse (OMB) nine months after the fiscal year end. The city's fiscal year ended Sept. 30, making the June 30 filing deadline already missed. Pruitt said the grant-related finding results from that missed filing; he added that, other than that, he had not identified issues likely to rise to the level of a material weakness or significant deficiency.

The finding matters because federal deadlines and audit reports can affect grant compliance, reimbursements and how credit agencies view a municipality. Council members asked whether credit agencies had been notified; city staff said the city had informed its credit contacts and that the notification email would be forwarded to council. "The people that are gonna care about the dates of your audit are gonna be granting agencies, credit agencies, banks, you know, comptroller's office," Pruitt said.

Pruitt described the audit timetable and next steps. He said Patillo, Brown and Hill finished fieldwork and is preparing the draft report for internal review, and he expected to deliver a draft within days to the city for review. He told council he expected the finalized audit product to be completed and available to present to council around Oct. 1, and he said the firm already has the city's next-year engagement on the December schedule. Council members and staff discussed timing for the finance committee to receive the draft and for staff to review before final council presentation.

Council members and staff pressed for clarity on which fiscal year the current audit covers and on the timing and consequences of the grant-related finding. Pruitt confirmed the audit under discussion covered the fiscal year ended Sept. 30, 2024 (the "23-24" audit by local shorthand), and he said some back-and-forth is common in a first-year engagement when auditors request additional or different reports than initially provided.

What happens next: Patillo, Brown and Hill will finish production and internal reviews, deliver a draft to city finance staff, and staff and the auditor will exchange revisions before a final audit product is circulated. City staff said they will forward the notification email sent to credit agencies to the full council. The auditor said the firm is already scheduled to perform the next year's audit work in December and will aim to return the presentation to council in February (the typical schedule), once the current-year product is finalized.

Why it matters: A timely audit and clear disclosure of grant compliance findings affect the city's ability to document eligible spending and receive federal reimbursements, and chronic audit delays can make credit reviewers or grantors raise questions about controls or financial management. The council heard Pruitt's update during the Sept. 3 meeting and directed staff to continue coordinating with the auditor and to share the communication with credit agencies with the council.

Ending: The auditor emphasized accuracy and review steps: "Accuracy is very important to all of us," Pruitt said. City staff and council members set a schedule for a finance committee review and for the finalized audit to come before council in early October.