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Alderman urges longer lookback for grant revenue after audit correction
Summary
Following the audit correction, Alderman Tice referenced an internal-control suggestion to look back a full year for grant revenue recognition instead of 60 days; the auditor said 60–90 days is common but 180 days or a year can be justified based on funding timing.
During discussion of the audit correction, Alderman Tice raised a recommended internal-control change: lengthen the lookback period for grant revenue recognition so revenue that pertains to the next fiscal year is less likely to be recorded prematurely.
"Michelle had a suggestion in the internal control letter, that laid out a procedure going forward that on grants, we would look back for an entire year as opposed to 60 days," Alderman Tice said. He asked whether staff and auditors were comfortable with that approach.
Auditor Adam said the choice is up to the city and depends on the nature of the funding. "I would suggest 60 or 90 tend to be the most common that I see," he said, adding, "you will see 180 days, you know, 0.5 a year ... and every so often ... you will see a year." He said a longer lookback can be justified if state or federal payments are not provided timely and the money covers expenses already incurred.
The board did not adopt a formal change at the meeting; members discussed options and confirmed the audit acceptance before adjourning.
