Audit Reveals City Management's Budget Transfer Process Lacks Documentation

In the heart of El Paso's city hall, a pivotal discussion unfolded as the Financial Oversight and Audit Committee convened to review the results of a recent budget transfer audit. The atmosphere was charged with anticipation as committee members prepared to delve into the intricacies of the city's financial management practices.

Megan, a key figure in the meeting, presented the findings of the audit, which aimed to assess the Office of Management and Budget's (OMB) policies and procedures regarding budget transfers. The audit scrutinized whether OMB effectively communicated with city departments, enforced budget transfer limits, and ensured proper documentation was maintained.

The audit revealed a structured approach to budget transfers, categorized into three tiers based on the amount: transfers up to $50,000 approved at the department level, those between $50,000 and $100,000 requiring city manager approval, and any transfers exceeding $100,000 needing city council consent. This tiered system is designed to maintain oversight and accountability in the city's financial dealings.

While the audit praised OMB for its solid internal processes and proper documentation, it highlighted a significant gap: the absence of formalized standard operating procedures (SOPs) for budget transfers. The committee recommended that OMB create comprehensive written procedures to clearly define the steps, roles, and responsibilities involved in the budget transfer process.

In response, OMB management acknowledged the audit's findings and outlined their corrective action plan. They committed to developing and formalizing written procedures, which they had already begun drafting prior to the meeting. The target completion date for these procedures was set for August 8, 2025, demonstrating OMB's proactive approach to addressing the audit's recommendations.

The committee concluded that while OMB met several audit objectives, the lack of documented policies remained a concern. However, the swift action taken by OMB to create these procedures reflects a commitment to transparency and accountability in the city's financial operations.

As the meeting wrapped up, the committee members expressed optimism about the future of El Paso's financial oversight, recognizing that these improvements would enhance the city's ability to manage its resources effectively. The discussions underscored the importance of rigorous financial practices in fostering trust and ensuring the responsible stewardship of taxpayer dollars.