City staff to commission targeted procedures review, propose standard donor documentation

Speaker 1 said the city will engage third‑party agreed‑upon procedures to test specific account balances and revenue streams without seeking an audit opinion, describing the work as ‘‘our opportunity to really dig into those accounts’’ and to surface immaterial items auditors might not test. The procedures, staff said, are intended to complement—not replace—the regular audit by focusing on high‑risk lines and reconciling legacy system gaps.

The presentation flagged a decade‑old restricted contribution labeled on the check as "for beautification" for which staff found no supporting documentation when a donor requested the funds be repurposed. Speaker 1 said staff researched bank records and recommended a new standard donor form that would require donors to specify intended uses and provide a process for transferring or repurposing restricted funds. ‘‘We don't currently have a process,’’ Speaker 1 said, adding the form would record what a donation is for and procedures for transfers.

Speaker 1 said staff have solicited proposals from two firms (referred to in the presentation as BPA firms) to perform the agreed‑upon procedures and asked for cost estimates tied to discrete scopes of work (for example, ‘‘show me what $5,000 will look like’’). Council questioners asked about timing; staff responded the work will run alongside the annual audit so that auditors can focus on material items while staff resolve other discrepancies in advance.

City staff also described planned accounting housekeeping: rebates and certain miscellaneous receipts will be reclassified to offset expenses where appropriate, and staff will correct misposted entries once the procedures are complete. The presentation closed with a request for council feedback and an assurance staff will return with vendor cost proposals and a draft donor form for council consideration.