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City audit flags accounting errors, possible NRS violation; council approves financial statements
Summary
Auditors from Eide Bailly presented the City of Carlin’s FY2023–24 financial audit, citing adjustments for ambulance receivables, unearned grant revenue reclassifications, and a potential NRS statute overspending finding; the council approved the audit and accepted auditor recommendations for stronger controls.
Eide Bailly audit senior manager Mary Cain presented the City of Carlin’s fiscal year 2023–24 audit, identifying several adjustments and internal-control deficiencies. Cain said the allowance for doubtful ambulance receivables was increased by $193,000 after a calculation error and that the city had $162,000 of reclassifications between general and utility funds for unearned grant revenue. She told the council there was “a possible NRS statute violation” tied to general fund overspending in public safety and cultural and recreation functions and recommended improving bank-reconciliation review and journal-entry oversight.
Cain summarized other adjustments, including a $155,000 correction in the utility fund for unreimbursed grant funds and a $14,000 correction to room taxes receivable. She said the audit did not find evidence of fraud but noted “errors that highlighted the need for stronger internal controls.” Bernardo Sandoval confirmed the ambulance receivable adjustment related to amounts accumulated from 2017 through 2024. After questions from Councilmember Linda Bingaman and others, Denise Taylor moved to approve the audit as presented; Cameron Kinney seconded the motion, which the council passed.
The audit packet included a Management’s Discussion and Analysis to explain the city’s financial narrative and an audit letter detailing accounting policies and uncorrected misstatements. The auditors advised capitalizing engineering costs for capital projects and implementing a second-party review of adjusting journal entries to reduce future errors. Council action: approved the FY2023–24 audit; staff were directed to follow auditor recommendations.
