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Board accepts FY2025 audit after auditors correct $1.79 million timing error
Summary
The Brentwood Board of Aldermen voted to accept the fiscal year 2025 audit after auditors corrected a timing-related $1,794,000 revenue recognition error and confirmed there was no missing grant compliance. Aldermen discussed changing revenue-recognition lookback periods to reduce future mistakes.
The Brentwood Board of Aldermen voted June 29 to accept the fiscal year 2025 audit (ending Dec. 31, 2024) after staff and the city auditor explained a timing-related correction to the report.
Michelle, who presented the audit, told the board there was “one minor change between the draft which you had seen and then with the final … on page 24 where we restated the beginning balance for Fund 40.” The revision reflected how grant dollars were allocated and did not change the end result for FY25, she said.
Auditor Adam told the board the issue was a timing or cutoff error, not missing money. “There was this $1,794,000 that was recognized as revenue in 2024, but technically should have been recognized in 2025 because of a wrinkle in governmental accounting,” he said. Adam added the city’s single-audit testing of federal grant compliance for the prior year did not find omitted items.
Alderman Tice pressed why the overstatement was not identified in last year’s audit; Adam replied plainly, “we missed it.” The board discussed internal-control steps to prevent the same timing error going forward.
Alderman Tice moved to accept the audit and the motion was seconded. After calling for voices in favor, the Chair declared the motion carried and the audit accepted. The board took no separate formal action on changing recognition policy at the meeting.
The board adjourned after brief announcements and a reminder about a July 4 event at Brentwood Park.
