Tusayan council accepts 2024 audit; staff to correct HURF bookkeeping and consider capitalization policy

The Tusayan Town Council on March 11 voted unanimously (4–0, one member absent) to accept the town's audited financial statements for the year ended June 30, 2024.

Auditor Scott Graff, with Colby Powell, presented highlights of the audit and a Management Letter that included suggested accounting adjustments and operational recommendations. Mayor Clarinda Vail asked about a Restricted Fund deficit in the Streets Fund (commonly called HURF). Graff said that the transfers that would resolve the deficit needed Council approval and noted those transfers had not been reflected on the books. Town Manager Hendrix told the Council the transfers had been authorized previously but were not processed in the way a government auditor would expect, and staff will correct the entries with mid-year adjustments.

Hendrix also said the auditor's notes were contained in a Management Letter, not in the audit itself, and that staff will work with the Town Attorney to draft a Capitalization Policy to address the auditor's recommendations. Mayor Vail moved to accept the audit as presented; Vice Mayor Greg Brush seconded the motion, and the vote carried with Council Members Josh Collet and Andrew Aldaz joining the aye votes; Council Member Kathryn Kanallakan was absent.

The acceptance of the audit closes the formal review of fiscal year 2024 financial statements for Tusayan, while staff follow up on bookkeeping and internal policy updates recommended by the auditors. The Council did not adopt a capitalization policy at the meeting; Hendrix indicated a policy would be developed and returned to Council for consideration.