Title
Follow-up to FY 2022-2023 Audit Finding
PURPOSE: The purpose of this agenda item is to provide a response letter for planned corrective actions relating to the audit findings presented to Council on January 9, 2024
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Department
DEPARTMENT: Finance
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Contact
CONTACT INFORMATION: Bret Greene, (919) 918-7439, bgreene@carrboronc.gov
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Council Direction
COUNCIL DIRECTION:
___ Race/Equity ____ Climate ____ Comprehensive Plan __X__Other
Council Direction Statement
This agenda item ensures continued compliance for financial operations and continued improvement in this space. Findings and suggestions have been reviewed by both staff and the independent auditor prior to presentation to Council.
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Information
INFORMATION: In the audit ending June 30, 2023, the independent auditors identified a material weakness in the balances provided for certain asset and liability accounts which required material adjusting journal entries during the audit process to correct these improperly reported balances. Recommended actions for the FY 2024 and beyond are outlined below and formalized in the attachment.
1. The Finance Director position has been backfilled and Finance Department is fully staffed.
2. New role of Comptroller has been established to strategically govern and lead the accounting process, including approving all journal entries input by Staff Accountant and Accounting Technician.
3. The Deputy Finance Director and Finance Director will lead internal reporting metrics including:
a. Monthly Balance Sheet account reconciliation.
b. Monthly variance reporting on Actual vs. Budget and Reforecast vs. Budget
c. Continually monitor unassigned fund balance goal of 22.5-35.0%.
d. Simplify fund reporting process by aggregating smaller funds into grouped reporting as pursuant to North Caolina Law.
e. Review all balance sheet accounts, across funds.
f. Review and assess system processes for capital assets, accounts receivable and account...
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