Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Audit topic
No spam. Unsubscribe anytime.
Fairview council approves corrective action plan after auditors flag $919,531 in misallocated interest and other deficiencies
Summary
Council approved a corrective action plan to address audit deficiencies for FY22–23 that include misallocated LGIP interest ($919,531 over three years), retainage accounting issues (food court ~$182,000), bank reconciliation errors and a move to record capital assets in Tyler to improve depreciation accounting.
Fairview city staff presented and council approved a corrective action plan on June 3 addressing deficiencies identified in the FY22–23 audit.
Staff said auditors identified multiple issues including bank reconciliation errors that required audit adjustments, retainage that had not been recorded properly (the food court retainage was about $182,000 and sidewalk retainage just over $6,000) and incorrect allocations of interest from the local government investment pool (LGIP) where interest that should have been recorded to the city had been allocated elsewhere. Staff reported reallocating interest that should have gone to the city totaling $919,531 across fiscal years 2022–23, 2023–24 and 2024–25.
Staff described corrective steps including monthly allocation corrections, migration of capital asset records into the city’s Tyler system for depreciation calculations, and other internal control enhancements. Council voted to approve the corrective action plan as required by the Secretary of State; staff said the plan will be filed and remediation work will continue.
"We came to council and combined the two LGIP accounts so interest allocation cannot be done wrong going forward," a staff member said, describing the operational fixes already implemented. The council approved the corrective action plan by motion and voice vote.
