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Audit director: FY25 work underway, interfund reconciliations likely to generate repeat finding
Summary
City finance staff told the audit committee they have submitted roughly 35% of requested FY25 audit documents and expect substantial improvement over FY24, but unresolved interfund balances could produce a repeat finding (2024-004); staff estimate any fund-balance adjustment will be under $250,000.
City finance staff reported to the Jackson City audit committee that active field work on the FY25 audit is underway and that roughly 35% of requested documents have been submitted. Finance Director (speaker 7) said prior-year findings are "substantially resolved" and framed a corrective-action plan aimed at shortening the audit cycle and improving repeatability of financial processes.
The director warned that mismatched interfund receivables and liabilities remain the primary outstanding item and "that particular finding, which was 2024DashOO4, will probably be a repeat finding." He clarified the issue is a reconciliation and reporting problem rather than a cash misstatement, and staff plan to reconcile pooled-cash simulated entries (due-tos/due-froms) with auditor assistance. On the potential fiscal effect, the director estimated any net adjustment to FY25 fund balance would be "less than a 250,000 overall" across all funds.
Committee members pressed staff on timing and staffing to complete the reconciliations. The Finance Director said the city has begun cataloging capital assets for in-house depreciation work and added that the FY25 audit improvements should reduce the scope and size of later adjustments. The committee was told to expect a more regular audit cycle by FY26 and a projected FY27 audit issuance window in January or February 2027.
Provenance: topicintro evidence: "Last month, we discussed the ethics suite... Regarding the 2024, audit findings it is, substantially complete." topicintro segments SEG 001; topicfinish evidence: "In this case, it's less than a 250,000 overall." topicfinish segments SEG 328.
