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Morgan's Point Resort officials cite FundView conversion errors that delayed audits and underreported water and marina revenue
Summary
Finance staff told the council that a November 2024 conversion to the FundView financial system produced billing and reporting errors that postponed completion of the 2023–24 audit (now tentatively due by March) and may have truncated large customers' water usage. Council discussed options to fund extra audit work to comply with Senate Bill 1851.
Mary, the city's finance director, told the council a major update: “This past Friday, we were notified that the audit is tentatively scheduled to be may be completed by March.” She said the 2024–25 audit cannot start until auditors finish the 2023–24 review.
Mary and other staff described multiple, system-wide reporting problems after the city's move to FundView in November 2024. The finance director said accounts-payable and certain revenue and general-ledger calculations were not producing accurate numbers and that staff had to reconcile programmatic and payroll issues before the auditor could complete work.
Staff identified a conversion error tied to meter-size mapping during the FundView upload that affected water billing. As one staff member explained, a large customer’s recorded consumption had been truncated during the conversion: staff cited an example where recorded usage dropped from “2,300,000” gallons to “23,000” gallons. Mary said staff have narrowed the cause to how meter data were mapped during the conversion and are working to reconcile affected accounts, but she emphasized the fiscal impact remains unknown until reconciliations are finished.
Council members pressed for clarity about legal deadlines and penalties. Council member Dorothy said she was “concerned with the letter of the law” for the 2025 audit deadline and sought options to make sure the city complies with Senate Bill 1851. A city official warned that state consequences can freeze a city’s ability to adopt a revenue-increasing tax rate or issue debt until audit issues are resolved.
Council discussed practical next steps: funding additional audit work or seeking continuity from prior auditors to speed the review, pursuing a state extension if applicable, and running a full revenue-and-expense analysis to identify exact shortfalls. Staff recommended reconciling the FundView data with department source files (water department meter data and marina slip records) and said they would convene a follow-up meeting with FundView personnel to correct program-level errors.
The council did not take a formal vote on remedial funding at the session; members asked staff to report back with an estimate of the fiscal exposure and the cost to accelerate the audits. The finance director said staff will calculate precise impacts and coordinate with the city manager and legal counsel on next steps.
Ending: Mary told the council she was disappointed by the delay but said department staff have been working to resolve conversion issues and that the city will provide a follow-up schedule once reconciliations and auditor communications are complete.
