Council temporarily approves prior-year budget as auditors review 2024 records

The Enola City Council voted to temporarily adopt the prior year's budget as auditors search for missing documentation in the 2024 audit, a step council members said was intended to keep city operations funded while the accounting discrepancy is resolved.

A council speaker outlined that the city's 2024 audit remains open because auditors could not substantiate one invoice or receipt; staff and the auditor have reviewed records and suspect a purchase was miscoded or a receipt misplaced. The speaker urged approval of the same budget figures used in 2025 so departments can continue operating while staff pursues a correction with the auditor. The transcript records a motion and voice vote approving temporary adoption of the prior-year budget.

Council members also cited a letter from state audit authorities warning that if required audit reports and management letters are not filed within statutory timeframes the legislative audit committee may withhold municipal turn-back or shared funds. The meeting transcript references Arkansas Code Annotated 14-75-104 and 14-58-101 when the state audit letter was discussed; the letter and a separate meeting comment referenced deadlines that include June 30 (discussed in the meeting) and an 18-month completion schedule described in the state letter.

Council asked staff to continue working with auditors to locate the missing receipt and to provide a more detailed budget report at a future meeting; members emphasized the need for reserve planning so the city can respond to unexpected expenses, such as sewer pump replacements cited in the presentation.

The council's temporary approval maintains continuity of operations but does not substitute for a completed audit or final annual financial statement.