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Auditors: Jamestown general fund fell $923,000 in 2023; ARPA spending drove revenue and expenditure spike
Summary
City auditors presented the fiscal 2023 audit noting a $923,000 decrease in the general fund balance to $8.3 million, heavy ARPA spending, delayed audit turnaround and internal-control recommendations including segregation of duties.
Independent auditors presented Jamestown’s fiscal year 2023 audit results at the March 10 meeting, reporting the general fund balance decreased by $923,000 to about $8.3 million and that nearly $10 million in American Rescue Plan Act (ARPA) funds were spent during 2023.
Karl Wittmer of the audit firm summarized required deliverables and compliance testing, and said the ARPA program was selected for federal compliance testing because the city spent nearly $10 million of ARPA money in 2023. “The audit of 2022 was significantly delayed. This one was anticipated to go quicker,” Wittmer said, noting the firm and city staff worked to complete the 2023 audit after the city was ready for fieldwork in December. Jared Takayre, senior manager on the engagement, assisted the presentation.
The auditors said 2023 spending rose to about $50 million and revenues were just under $50 million; the net effect was the $923,000 decrease in the general fund. The audit showed an unassigned fund balance (the portion available for general use) of roughly $7.1 million. Using a common benchmark from the Government Finance Officers Association, auditors described the unassigned balance as approximately 14% of annual spending, below a 16.7% (two months) benchmark that some governments use as a guideline.
Auditors flagged operational items for improvement, including increased risk from limited segregation of duties in accounting cycles and delayed financial reporting. Wittmer said auditors found no evidence indicative of fraud but emphasized those risks matter for internal control. The firm noted the city is behind the typical nine-month turnaround for submitting financials and that accounting-software changes, open projects and union negotiations have slowed records preparation.
Council members asked when the next audit cycle would be completed; auditors said they are monitoring records and will seek to improve timelines but could not guarantee a September 30 turnaround for the next year. The audit presentation was delivered to the finance committee in advance of the full meeting and was included in the finance committee’s report.
Provenance: Audit presentation by Karl Wittmer and Jared Takayre and subsequent council questions.
