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Audit finds general fund healthy but capital projects show deficit; council hears two budget overages
Summary
Child Richards & Associates reported a clean audit for Clinton's FY2023–24 financials but identified a capital-project fund deficit (800 North project, ~ $400,000) and two budget overruns: solid waste (~$24,000) and public safety/general fund (~$58,000). Auditors recommended transfers and budget amendments.
Child Richards & Associates presented the Clinton City FY2023–24 audit at the Dec. 10 council meeting and reported an unmodified (clean) independent auditor's opinion overall while identifying two formal findings and recommended corrective steps.
Key findings the auditor highlighted included a net governmental fund increase of about $432,000 that leaves the general fund balance near $4.8 million. Separately, the capital project fund associated with the 800 North project had an ending deficit of nearly $400,000; the auditor noted the deficit stems largely from highway and public improvement costs within that fund. The auditor recommended a corrective transfer or fund consolidation to eliminate the deficit.
State-compliance testing produced two reportable items: expenditures in the solid-waste enterprise fund exceeded the adopted final budget by about $24,000, and public-safety charges in the general fund exceeded their final budget by about $58,000. The auditor advised preparing formal budget amendments to reflect those overages.
Council thanked audit staff and asked finance staff to continue monitoring September 30 quarterly statements; staff said they will use the audit as a basis for recommended journal entries and potential fund transfers and will work to avoid repeat findings going forward.
Next steps: staff to prepare required budget amendments and any necessary interfund transfers; council requested follow-up reporting and the finance team plans to present a consolidated plan to address the capital fund deficit.
