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Madison commission acknowledges late 2022 audit, outlines corrective actions
Summary
City staff told commissioners the 2022 financial audit was delayed by an accounting software conversion, staffing transitions and auditor scheduling; the audit found record‑keeping, policy documentation and procurement gaps and staff described corrective action steps and training timelines.
Madison city staff presented the findings of the 2022 financial audit and the commission voted to acknowledge the report.
Jameson Hillman, who led the presentation, said the audit was delayed largely by the city’s conversion to Tyler Technologies and a subsequent scheduling bottleneck with the auditing firm. "We had to make sure that the new system is reflecting the audit numbers...and we had to get on the auditor's schedules," Hillman said, summarizing why the 2022 audit is being considered in late 2024.
Hillman described three formal audit findings (filed as 2022‑001002): poor record retention practices, the absence of documented policies and procedures, and the lack of a formal procurement policy tied to federal single‑audit requirements for entities that receive more than $750,000 in federal funds. He said staff found some documents could not be located for auditors and attributed missing materials in part to staff transitions and the systems conversion. "We can...chalk that up to transitions," Hillman said, adding city staff have implemented job files and a record retention policy to reduce future lapses.
On procurement, Hillman said a formal policy has been drafted and will be adopted following final review; staff also plan annual process reviews and training for new systems, including a planned training on the Tyler depreciation module in 2025. He detailed accounting corrections already made (adjusting entries, reconciliations and corrections related to bond invoices and inventory accounting) and listed items still in progress, such as reconciling taxes receivable and special assessments with the county.
Hillman emphasized that auditors did not find financial improprieties. "No financial improprieties were discovered," he said, and added the findings are largely paperwork and process issues. Commissioners asked about statutory deadlines: Hillman said codified law gives municipalities 18 months to complete audits and acknowledged the city missed that deadline for 2022; staff have since worked with bond rating agencies and the Department of Legislative Audit as needed.
The commission moved to formally acknowledge the 2022 audit findings; the motion carried.
The item concluded with staff committing to complete corrective action plans, continue work on the 2023 audit and provide regular updates to the commission on outstanding reconciliations and policy adoptions.
