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Finance staff reports ledger transfer error; auditor to adjust FY25 records
Summary
City finance staff reported a duplicate transfer to pooled cash in 2024 that created a temporary negative cash balance in internal accounts; auditors will reflect the correction in fiscal year 2025.
Finance staff told the Alva Economic Development Authority that reconciling pooled cash and a separate ICS account revealed a duplicate transfer in 2024 that produced a negative cash balance on internal tracking. The staff member said the money was moved back to the ICS account before the meeting and that the city's auditor, Paul at Crawford's, indicated the correction will appear on FY25 books because the reversal occurred in the later fiscal year.
Why it matters: the duplicate transfer affected designated funds earmarked for the swimming-pool project and produced a temporary negative cash balance on ADA internal reports. Staff said restricted pool funds remained in the ADA account and were used for pool expenses and that auditors will make adjusting entries when they perform FY25 audit work. The staff member said they found the discrepancy while reviewing detailed journal entries and thanked a previous preparer for detailed notes that helped identify the issue.
Staff offered to bring the auditor to a future meeting for clarification and said line-item transfers and budget cleanup would be used to reconcile negative balances before auditors close out fiscal-year accounts. No formal action was taken at the meeting; this was an informational accounting report.
