The City Council of Indianapolis convened the Marion County Audit Committee on March 7, 2025, to discuss key audit and accounting matters relevant to the city and county. The meeting emphasized the importance of clear communication among council members and highlighted the significant role of Chief Financial Officer (CFO) Harris in interpreting complex financial information.

The committee began by addressing the impact of COVID-19 and the funding received through the American Rescue Plan Act (ARPA), which is expected to be a major focus for both city and county audits this year. The implementation of Governmental Accounting Standards Board (GASB) Statement 101 was also noted as a critical area of discussion.

A significant portion of the meeting was dedicated to the responsibilities surrounding the detection of errors or fraud within financial statements. The audit team outlined their approach, which includes three main responsibilities: engaging in brainstorming sessions to maintain professional skepticism, conducting inquiries with management to identify areas susceptible to errors or fraud, and reviewing accounting estimates for potential bias.

The audit team clarified that while their audits are not specifically designed to detect fraud, they are required to assess the risk of material misstatements due to fraud. They emphasized the importance of understanding the distinction between a financial statement audit and a forensic audit, which is specifically aimed at identifying fraud.

The committee concluded the meeting by inviting questions from council members, reinforcing their commitment to transparency and accountability in financial reporting. The audit team assured that any identified fraud would be communicated directly to the committee, adhering to professional standards and state requirements.

Overall, the meeting underscored the ongoing efforts to ensure financial integrity within the city and county, with a focus on adapting to new standards and addressing the challenges posed by recent funding initiatives.