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Drescher & Malecki partner Carl Widmer conducts 2022 audit of Jamestown City Council (February 26, 2024)
Fund balance remains positive city of jamestown2022 audit.
drescher & malecki Partner Carl Widmer submitted the results of the audit to jamestown city council Monday night. The report, which is typically submitted several months after the end of the previous fiscal year, was delayed in part because the city government did not have a full-time city auditor from December 2022 to January 1, 2024.
Widmer said the city’s 2022 revenue will be $45 million and expenditures will be $43.8 million.
In terms of the city’s total fund, he said the unallocated balance is $7.6 million and the allocated balance is $1.1 million. Widmer said the unallocated balance currently represents 17.5% of annual spending and is within that range. Government Finance Officers Association (GFOA) recommends that a municipality’s general fund should have at least two months worth of expenditures in its unallocated balance.
Widmer said the city spends more than $750,000 in federal funds in the fiscal year, so one audit is required in addition to the regular audit. He said this was due to spending. american rescue plan “Then we look at what programs have passed through the city, select specific programs, and perform a compliance audit strictly based on federal standards. Grants totaled more than $6 million, with the primary use of ARPA funds (more than $4 million) and the Community Development Block Grant Program (just under $1.5 million).”
Widmer said he found compliance issues with the way ARPA funds were handled, saying, “ARPA has a system that requires any federal program to upload large amounts of information to the portal about what it’s doing with this money. There are specific reporting requirements.” We will look into that information to see if that is happening. What we discovered was that some projects were misclassified or misclassified and we needed to report compliance findings on them. ”
Mr. Widmer said he spoke with the mayor. Kim Eklund and accounting audit erica thomas He argued that a corrective action plan should be considered and the problem should be mitigated before next year’s audit.
Due to audit delays and personnel changes in the finance department, the 2021 recommendations regarding internal controls and separation of duties in the finance department remain in effect, he said. Her one person in charge of a particular financial transaction from start to finish. In other words, we need to include others as checks and balances and deterrents to wrongdoing. As a result, there were inconsistencies in all aspects of the auditor’s office dealing with rotation and general ledger accounting. That’s a planned improvement. They are not made. ”
Eklund said those concerns are being discussed, including how to proceed with the currently vacant deputy auditor position, which Drescher & Malecki believes will help resolve segregation of duties issues. had previously stated.
In Monday night’s voting session, the City Council approved a new agreement with Drescher & Malecki to handle the city’s independent audits from 2023 to 2025 at a total cost of $105,495.
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