TITLE: Title
Follow-up to FY 2022 Audit Finding
PURPOSE: The purpose of this agenda item is to provide a status report to the Town Council on the audit finding to the FY 2022 Audit.
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DEPARTMENT: Finance
CONTACT INFORMATION: Arche McAdoo, 918-7439; Langston Ramseur, 918-7302
A. INFORMATION: In the audit ending June 30, 2022 the independent auditors identified a material weakness in the balances provided for certain accounts including, lease related assets and liabilities upon implementation of GASB 87, capital assets, accounts receivable, and accounts payable. These errors resulted in the auditors having to identify numerous adjusting journal entries to correct the improperly reported balances. At the recommendation of the auditors and directed by Council, the Finance Director retained the services of a CPA from April through June 2023 from Robert Half and Company to conduct a thorough review of all balance sheet accounts, across funds, to ensure that the trial balances provided for audit do not contain material errors. Th CPA also:
a. reviewed the Town's processes for capital assets, accounts receivable and accounts payable;
b. assisted finance staff with development of standard procedures and template for reconciliations of all balance sheet accounts, across funds to ensure that trial balances do not contain errors; and,
c. recommended finance team members attend at least 2 training events per year.
Reconciliation for all balance sheet accounts for the current fiscal year 2023 have been reviewed. Based on best practices, the finance staff working with the CPA have drafted the following new or revised policies, procedures and templates.
1. Year-End Closing
Communicates the expectations of all Town employees to facilitate the year-end closing of all accounts in an orderly, timely and comprehensive manner, ensuring the accurate representation of the Town's financial statements and providing the necessary documentation for the ...
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