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Independent auditor: Gregory’s 2023 finances healthy but accounting systems need overhaul
Summary
Independent auditor Noble Snedeker told the City of Gregory council the city posted a healthy general‑fund surplus for the year ending Sept. 30, 2023, but flagged weaknesses in accounting software, interfund reconciliation and internal controls and recommended migration from QuickBooks to Incode and stronger written procedures.
Noble Snedeker, the independent auditor, reported that the City of Gregory’s general fund brought in $2,015,000 and spent $1,491,000 for the year ending Sept. 30, 2023, leaving an increase in fund balance of about $264,000. "You brought in $2,015,000. You spent 1,491,000," Snedeker said while noting the city’s general fund and capital accounts appear financially healthy.
Snedeker walked council members through the audit schedules and explained differences between the modified‑accrual statements the council monitors and the full‑accrual figures that include capital assets and long‑term liabilities. He said the audit was performed using QuickBooks data and recommended moving to Incode to allow true fund accounting and easier reconciliation: "Your accounting software lacks the capability to track fund accounting and inter fund transfers… so you need to get off QuickBooks, get on Incode, and start setting up procedures." The auditor also advised written transaction‑approval procedures and second‑person review to reduce posting errors and speed reconciliations.
The presentation included line items for the system (utility) fund and other component units; council members asked for more granular expense detail for the system fund and the auditor said some supporting schedules may not break out every sub‑line item in the summary report. Snedeker invited follow‑up questions and provided his contact information for staff to resolve details.
The council voted to accept the fiscal audit after the presentation.
