Finance presents ERP progress, pledges single‑audit fixes and outlines move to full cost allocation

Finance Director Randy McKeegan and Assistant Finance Director Tara Loveless told the council on May 5 that the finance department will take on five positions to support the city’s ERP/HCM implementation and that a health‑check on the ERP financial configuration is planned for the coming year.

Loveless said the department’s personnel costs increase primarily because five staff supporting ERP and payroll/human capital management were moved into Finance; operational lines showed modest reductions in places. She said the finance team will continue work to finalize the HCM/payroll portions of the ERP and to bring community development and utility billing online.

Councilors raised questions about cost allocation and whether the city will move to a fuller methodology to charge support services to outward‑facing departments. McKeegan said staff plan to develop a citywide cost allocation plan after ERP/HCM implementation is complete and that work may begin in mid‑ to late‑2026.

On audit issues, finance staff acknowledged prior delays on the single audit tied to ERP‑related year‑end close and fixed‑asset reporting. Loveless said staff expect to issue draft financial statements for the prior year by the end of the current fiscal year and have a plan to complete the single audit in a timely fashion.

Loveless and McKeegan described how finance allocates personnel to enterprise funds where positions are dedicated to those services and said they will pursue a more systematic full‑cost plan later in the post‑ERP timeline. The department proposed no new capital projects beyond ERP health‑check work and emphasized a continuing focus on completing HCM and financial modules.

Council Member Smith reiterated a concern about prior single‑audit findings and asked staff to make timely filing a priority; staff agreed.