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Consultant warns audits are delinquent; presents timeline to catch up 2024–2025
Summary
An external consultant told the council that the city's 2023 and 2024 audits were delinquent and outlined steps and timelines—internal records for 2024 could be ready by March 31, the 2024 audit by June 30, and 2025 reconciliations possibly by June 30 with outside help; she recommended a mix of in‑house statement preparation and outside assistance for note disclosures and reconciliations.
The council heard a detailed review from consultant Tammy Galvez on the status of the city’s annual audits and internal accounting records. Galvez said audits are due annually and that the Georgia Department of Audits and Accounts can grant six‑month extensions, but noted the city already had delinquent audit years and that the department may be reluctant to grant further extensions if delinquency persists.
Galvez reported conversations with the external accounting firm JAT and the city’s finance director. She said JAT believes the internal records for 2024 could be ready for the auditor by March 31 and that, if no complications arise, the 2024 audit could be completed by June 30. She noted the city must also complete a federal (single) audit for certain federal funds tied to Jifa loans, which will add time after the financial audit is completed.
Galvez recommended keeping preparation of audited financial statements in‑house to avoid extra auditor time reconciling client‑prepared statements, but suggested using external consultants to prepare note disclosures and to assist with bank reconciliations and other schedules. She also recommended reviewing credit‑card reconciliation practices, clarifying credit‑card limits, and implementing a procurement/purchase‑order module in the city’s financial system to reduce manual data entry and improve encumbrance tracking.
Council members asked about the feasibility of meeting the suggested timelines and whether JAT has the capacity; Galvez said JAT has staffing and could be asked to commit to deadlines. Council and staff agreed to pursue a plan combining internal work, assistance from JAT, and targeted consultant help to try to complete 2024 and move onto 2025 reconciliations.
