The City's annual report overstated 2018 revenue in four major funds, water sales, sewer service, stormwater fees and solid waste service. Both finance staff and auditors missed errors totaling $4.2 million until after the comprehensive annual report had been presented to and approved by City Council.
Finance staff did not state why the errors occurred in their memo to council and City Manager Daniel Valenzuela has the item on the consent agenda for 8-20-19. Hopefully Mayor Gunter or members of City Council will pull the item for the public to hear. Coming clean on errors, that would be excellence in financial reporting.
Update 8-20-19: City Council Representative Billie Dewitt asked city staff and audit accountant about this agenda item. The auditor said city staff presented information differently this year that resulted in auditors overstating revenue for September 2018. That makes sense for water, sewer and stormwater. It is hard to believe 42.1% of solid waste revenue fell in the last few weeks of the fiscal year.
Update 2-15-23: The City was honored yet again for its annual financial audit.
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