Jackson City audit finds $13 million in cash-pool corrections, faults recordkeeping and reporting

Summary

An independent auditor told the Jackson City audit committee that migration to a new ledger left receipts outside the city's cash pool, forcing about $13 million in adjustments, identifying a timekeeping abuse near $30,000 and repeated reporting errors to US Treasury; the committee was urged to adopt an internal-audit plan and short-term consultant support.

An external auditor told the Jackson City audit committee that a recent financial-management system change left receipts and disbursements misrouted, producing a temporary negative cash-pool balance and roughly $13 million in correcting journal entries.

"It showed the city had negative $8,000,000 cash because all the receipts weren't flowing through the pool," Speaker 1, the presenting auditor, said. The auditor said the city had established a single "full cash" general ledger in its Tyler system but that some receipts were still going into accounts outside the pool, forcing staff and auditors to reverse and reclassify transactions so the pooled cash reflected actual holdings.

The finding was presented as a material weakness: auditors reported that manual entries and unreconciled internal balances meant the pool could not automatically allocate ownership among funds, a problem the team said required unwinding eight months of cash transactions. "That resulted in about $13,000,000 of adjustments to move that activity to the pool so the pool can be set up…

Jackson City audit finds $13 million in cash-pool corrections, faults recordkeeping and reporting

Summary

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