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Finance director reports audit delays after accounting conversion; single-audit risk flagged
Summary
City staff told the council the 2023–24 audit draft is delayed by reconciliation issues caused during an accounting conversion; staff found coding mismatches and warned that federal pass-through grants and FEMA reimbursements could trigger a single audit.
The city’s finance director told the council the draft of the 2023–24 audit has been delayed while auditors reconcile records affected by the city’s recent accounting-system conversion.
“We still are expecting the draft,” the finance director reported, adding that conversion-related entries required staff to track down documents and reconciliation details. The director described a sizable expenditure that had been recorded in a different module and required manual reconciling before auditors could finalize their report.
Council members pressed for clarity about whether bank reconciliations were complete for the Sept. 30, 2024 fiscal-year end; staff said bank reconciliations were made but that reporting runs across calendar months and the conversion timing led to coding and reporting mismatches that auditors asked staff to clarify. Staff said all requested documentation has been submitted and auditors were compiling a draft report.
The finance director also warned that the city may face a single-audit requirement because of federal pass-through funding (debris removal, CIFA, related grants) and FEMA-related reimbursements. "Because of the amount… those could very well and likely will be a single audit qualifier," staff said, urging the council to budget for the single-audit work and to expect additional audit items tied to the ground storage tank invoicing.
Next steps: auditors will complete drafting when fieldwork and compilation are finished; staff asked council members to provide availability for a potential special session to receive and accept the audit draft when it arrives.
