During a recent government meeting, independent auditor Tommy presented the findings of the 2023 annual audit, highlighting significant issues regarding financial management and compliance. The audit, which included a comprehensive review of financial statements, internal controls, and compliance with federal and state laws, revealed several critical areas needing attention.

Tommy emphasized the importance of timely reconciliations of major accounts, noting that many reconciliations for 2023 were not completed until 2024, leading to inaccuracies in financial records. A notable adjustment of approximately $2.5 million was required to correct discrepancies related to grant receivables. He stressed that such delays in accounting practices could lead to larger issues in the future and recommended that reconciliations be performed monthly to avoid compounding problems.

The auditor also pointed out a compliance violation, as the report due to the state legislative auditor by June 30 was not submitted on time, primarily due to the disorganization of accounting records. Additionally, concerns were raised regarding internal controls over personnel costs, specifically the cash payment policy for paid time off (PTO). Tommy advised a review of this policy to ensure its compliance with regulations.

Lastly, the audit addressed adherence to the local budget act, indicating that further evaluation of budgeting practices is necessary. Tommy concluded by expressing confidence that with the implementation of recommended changes, the issues identified could be resolved by the next audit cycle.