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League review says Lewistown reconciliations balanced; League to seek release of withheld state funds
Summary
A Montana League of Cities and Towns reviewer told the Lewistown City Commission that city reconciliations balanced "to the penny," recommended monthly reconciliations and said the League will ask the Department of Administration to lift a withholding tied to a prior audit finding.
Darla Erikson of the Montana League of Cities and Towns told the Lewistown City Commission on Sept. 17 that an on-site review of the cityclerkoffice found cash, tax receivable and payroll clearing reconciliations balanced and no unknown variances.
Erikson, a member of the Leagues financial services team, said she and city staff reformatted the reports to match what the Montana Department of Administration (DOA) asked for and discovered the apparent discrepancies were a matter of presentation. "Everything balanced to the penny," she said, adding that some DOA staff had misinterpreted a repurchase agreement sweep account when reviewing totals.
The League representative reviewed the citys cash reconciliation, payroll clearing fund and the tax levy requirement schedules and found no unresolved variances. She noted that the citys audit firm is rigorous and that timing can lead to repeated findings when audits close near the fiscal year end. Citing the statutory authority that allows withholding of state assistance for unresolved significant findings (2019 Senate Bill 302), Erikson said the League will prepare and submit documentation asking the DOA to reconsider the withholding now that the city has produced the requested reconciliations.
Why this matters: the DOAs withholding of state funding can materially affect municipal operations; the Leagues intervening review concluded Lewistown provided the information DOA requested once given a clearer template.
Details and next steps: Erikson recommended the city complete monthly reconciliations by the 15th of the following month, maintain timely submittals to the DOA and engage state legislators about the technical-assistance gap she described. She said the League will draft a formal letter and supporting report to present to the DOA and to the city, aiming to show Lewistown is now in compliance and that the withholding should be lifted.
The commission thanked Erikson and instructed staff to continue communications with the DOA and the League. No formal vote was required on the report itself; the Leagues planned letter and any further correspondence with DOA will be follow-up matters for the city manager.
