Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit Finance topic
No spam. Unsubscribe anytime.
Audit flags inventory-control weakness; Cuba City management says software rollout will fix it
Summary
The FY2024 audit presented to the Cuba City council showed a net position decrease and a single finding: utility departments lacked a year-round FIFO inventory tracking system. Management concurs and expects to standardize inventory software across departments, with projected implementation in 2026.
City staff presented key points from the FY2024 financial statements and the accompanying audit to the council, reporting a total net position decrease of $889,450 (about $218,000 in governmental activities and $670,810 in business-type activities).
Auditors flagged one finding on page 58: the water, sewer and natural gas departments do not maintain a year-round inventory-tracking system using FIFO; instead, inventory is counted at year-end and the current replacement value is used when costs are unknown. The audit recommended that all city utility departments use the same inventory program and costing method.
Management told the council it concurs with the finding and has begun work to standardize inventory processes and software. Staff reported the project is roughly three-quarters complete and expected to be functional by July; they warned the finding could reappear on next year's audit while implementation continues.
The council discussed practical steps (assigning computer-savvy personnel, cross-department assistance) and noted the need to ensure accounting entries flow to the city's accounting system on an ongoing basis. No vote was taken on the audit itself during the recorded segments; staff said the 2024 audit would be presented for approval tonight and that 2025 audits are on track to be completed on time.
