Kewanee finance director reviews FY24 audit, outlines schedule for accounting changes

James Webb, Kewanee’s finance director, presented the city’s FY24 audit — conducted by Hopkins & Associates — to the city council on Feb. 10, 2025 and outlined expectations for month- and year-end close procedures.

Webb told the council month-end close should take about "5–7 days" and year-end close "a couple of weeks," and said the typical annual audit is expected to be completed by October. He also described that the city is working toward a transition from cash-basis reporting to accrual accounting, a process he said is underway but time-consuming and likely to complicate the audit process in the short term.

The presentation highlighted that issues cited in prior audits — notably difficulties tracking interfund transfers — were not part of this audit’s findings. Mayor Moore clarified for the audience that "the City does not have $20 million just sitting in an account for us to spend," noting that many funds have restrictions or minimum thresholds governing their use. City Manager Gary Bradley added that funds received during the COVID period (ARPA) had been spent on capital improvements and long-term strategic plans and that pension parameters are set by the State, limiting the City’s options for changing pension funding without raising property taxes.

Councilmembers asked procedural questions about close timing and the audit schedule; Webb reiterated the 5–7 day month-end target. The presentation concluded with the council accepting the report and moving on to other agenda items.

The council took no formal action to change pension rules or tax policy during the meeting; those matters remain governed by state rules and would require separate decisions by elected officials.