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Staff says auditor will amend Note 12; adjustment would raise several fund starting balances
Summary
Finance staff explained that a line‑selection error on Note 12 inflated committed capital showing a negative available‑fund position; staff provided examples showing fleet, water/sewer and drainage move from negative to positive once CLA updates Note 12, and promised auditors are QA‑reviewing supporting files.
Staff explained an auditor‑driven correction to Note 12 of the ACFR that materially changes the committed‑project footnote and therefore the cash‑flow presentation used to compute available funds. Katrina Owens, who led the presentation, told the council staff "took a gross line versus a net line" in one report and that CLA is reviewing the updated data. "When we update Note 12, you're gonna have all positive data," Owens said, adding that the proposed FY2026–27 budget numbers themselves did not change — the restatement affects only how commitments and starting positions are presented.
Council members sought specifics on how much the Note 12 restatement changes the commitment totals; staff said the original $288 million in commitments would be reduced to approximately $207 million after the revision and audit QA. Staff emphasized no cash is missing and that the correction reflects a reporting line choice (gross vs net) rather than an actual diverted fund.
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