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City manager outlines multi-year audit backlog, says reconciliation under way
Summary
City staff told commissioners that reconciliation work by CRS has cleared parts of records dating back to 2018 and that a separate audit firm will perform the formal audits; staff said recent state law changes may allow recovery of some withheld revenue once audits are current.
City staff gave a detailed briefing on a long-running audit backlog that dates to 2018 and described a two-firm approach to resolving it: CRS is reconciling historical transactions and a separate audit firm (Reading, from Mayfield) will conduct the formal audits because Kentucky law prevents one firm from doing both reconciliation and the official audit.
Speaker 2 said CRS has completed work on 2022 records and will hand reconciled files to Reading to finish the formal audit. He explained that CRS has systems access to transaction records and that United Systems is resolving programming and access issues so auditors can complete final entries. "They're programming issues signed with... United Systems is working on getting their full access," Speaker 4 said.
The manager described using statutory relief recently enacted by the governor (name rendered in the transcript as 'Rashear') as a possible pathway to recover state-held revenues that the city cannot access while audits are incomplete. Staff urged patience, said the work will take time and recommended arranging an engagement letter for audit services through 2025, the maximum three-year term the firm will accept.
The commission did not set final dates in the excerpt but discussed that CRS will complete reconciliation and Reading will perform audits for the years brought current; staff said they have filed for available extensions where needed.
