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Finance director says $1.9 million reporting error improved city equity
Summary
The finance director described a $1.9 million clerical reporting error discovered in reconciliations that, when corrected, raised the city's reported equity; staff said controls will be strengthened and will provide follow-up figures in 2025.
The city's finance director briefed the council on a $1,900,000 reporting error identified in reconciliations and not captured on the initial trial balance.
The finance director described the discrepancy as a clerical anomaly from prior years and walked councilors through its effect on balance-sheet presentation. He summarized the corrected position by saying, "That is the equity of the city. If you take our assets minus our liability, this is what we want." He later noted the corrected primary position increased the city's reported equity from about $26,000,000 to roughly $27,300,000 in the presentation.
Staff said the error was discovered during routine reconciliation and that control procedures are in place to prevent recurrence. The finance director offered to return with quantified progress on planned corrective actions in 2025 and said staff could be contacted for additional details outside the meeting.
