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City controller reports 2023 audit results, cites reporting items and two findings
Summary
City Controller Peter Gray told the council the city remains within budget for the year and summarized the State Board of Accounts 2023 audit: an unmodified regulatory opinion, an adverse GAAP opinion (solely for reporting), missing reporting on five wastewater bond trustee payments, slow bank reconciliations, a partially recorded CD transaction, and two findings related to reporting and lack of documentation for vendor debarment checks on federal grant payments.
Peter Gray, West Lafayette City Controller, presented the finance report on Nov. 4 and reviewed the city's 2023 audit by the Indiana State Board of Accounts.
Gray said the city is a little more than 80% through the year and that cash-basis spending was 63% (74% including encumbrances), which he described as "well within budget." He explained the city uses a regulatory (cash) basis for reporting rather than GAAP (accrual) and noted the SBOA issued an unmodified opinion on the regulatory basis; the SBOA also issued the required GAAP opinion, which was adverse because the city does not prepare GAAP statements.
Gray summarized audit notes and findings: the city did not record five trustee payments from the wastewater bond trustee to bondholders in the reporting package (the operational cash balances were correct), bank reconciliations were performed slowly, and one of two CD transactions was only half recorded on the balance sheet. More seriously, the SBOA issued two findings: one on reporting of transactions (including the trustee transfer issue) and a second on documentation. The documentation finding related to federal-grant payments: the city checked vendor debarment status online but did not preserve screenshots or other documentary evidence to show that the check was made. Gray said the city is addressing these items and discussed options such as affidavits from vendors to document debarment checks.
Councilors asked whether these findings are routine; Gray said the checks had been performed but the documentation step was missed and that the SBOA has required that documentation in prior audits. Councilors accepted the report and Gray invited questions.
