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Brentwood aldermen accept FY2025 audit after $1.79 million timing correction
Summary
The Board of Aldermen voted to accept the fiscal year 2025 audit after auditors disclosed a $1,794,000 revenue timing correction; auditors said the adjustment was a cutoff issue, not missing funds, and recommended internal-control changes to prevent recurrence.
The Brentwood Board of Aldermen voted to accept the fiscal year 2025 audit for the period ending Dec. 31, 2024, after auditors disclosed a $1,794,000 timing correction to revenue reporting.
The discussion opened with Michelle presenting the final audit and noting a minor change from the draft: a restatement of the beginning balance for Fund 40 tied to grant accounting. She said the final audit was distributed to members after recent oversight questions about whether the city would meet the federal single-audit threshold.
Adam, who answered auditors’ technical questions during the meeting, explained the threshold and the timing issue: "So a single audit is required for any entity that's spends, over 1000000 dollars in federal funding in a given year," he said, adding that the city did not meet that threshold for FY2025. He also described the specific adjustment: "There was this $1,794,000 that was, it was recognized as revenue in 2024, but technically should have been recognized in 2025 because of a wrinkle in governmental accounting." He said the change reflected the proper cutoff and that "there's no missing money, no missing revenue as a whole."
The chair of the Ways and Means committee (self-identified during the meeting) asked what internal-control changes staff recommended. Michelle and Adam discussed options for the city's revenue-recognition policy for grant dollars, saying common lookback periods are 60 or 90 days but that some entities use 180 days or a full year depending on the timing of receipts from state or federal sources.
After discussion, a motion to accept the FY2025 audit report was made, seconded and approved by acclamation. The board did not record a roll-call vote; the moderator stated the motion "carries." The meeting adjourned with brief closing remarks and a reminder about an upcoming community event at Brentwood Park.
The audit presentation and the board's action focused on correcting the timing of revenue recognition for Fund 40 and on recommended internal-control adjustments; officials said the correction did not indicate any missing funds or noncompliance in federal grant testing.
