Auditor: Milton books "not audit ready" after CFO departure, extra work required

Kristen McAllister, the Warren Averett representative, told the Milton City Council that auditors found several reconciliations incomplete or incorrect — notably pooled cash, fixed assets, capital assets and grant accounting — and that the firm repeatedly reviewed client information and provided indications of where corrections were needed.

McAllister said a key change this year was the CFO's termination during the audit period, which delayed receipt of information and required the firm to involve the city manager and other staff. "The work that was incurred from May did not contemplate that occurring," she said. The firm emphasized it was not performing reconciliations for the city; rather, McAllister said auditors have been reviewing and evaluating records to identify needed corrections.

Council members asked whether the city's transition to a new financial system affected access to records; McAllister said she could not speak to system change specifics but said the finance director has been providing reconciliation information and is "working through the bank reconciliations." McAllister warned the city will likely have multiple findings in its audit report related to internal control weaknesses and grant accounting.