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Finance reports FY25 collection performance and progress remediating audit findings
Summary
Finance staff reported a FY25 collection rate of about 94.8%, positive variances in multiple tax streams, and that seven of 11 prior audit findings were resolved while four remained with remediation plans underway to strengthen reconciliations and internal controls.
The budget manager (identified in the packet as Gary / Kovich) gave the FY25 collection analysis and update on audit findings. He said the budget year assessed value used in planning was about $33.7 million and that the city collected roughly $31,971,395—about a 94.8% collection rate for fiscal 25. Collection results exceeded budget in several categories (personal property, machinery and tools, business licenses, lodging and meals taxes) while some categories (consumer utility taxes) lagged.
The finance presentation detailed progress on FY25 audit findings: in recent years the city had 11 unresolved findings; the FY25 work resolved seven, leaving four material weaknesses. These remaining issues include lack of monthly reconciliations between the utility-billing subsidiary system and the general ledger; unreconciled property-tax delinquent lists; material audit adjustments proposed by external auditors requiring GAAP adjustments; and lack of reconciliation of cash reported in funds to the treasurer's accountability fund (Fund 999). The finance team said draft policies and procedures are in development and that the city has hired staff and will implement monthly reconciliation templates and additional controls.
Council members asked for supplemental reports on accounts receivable and past-due real-estate taxes and asked that staff aim to bring those details to the March 17 meeting. Staff committed to preparing requested information.
