The Idaho Falls City Council received a clean bill of financial health from the audit of last year’s city finances.
Two representatives from the Portland-based accounting company Moss Adams told the council at its Monday work session that they found “no material instances” of fraud, errors in the city’s financial transactions or noncompliance with federal grants.
“It allowed us to take initiative and move forward to be in the position we’re in now,” city Treasurer Pam Alexander said.
Some errors were found in the city financial records, including $2.1 million that was incorrectly listed under the wastewater fund and $1.75 million in adjustments to the projects and accounts in the electric fund. Those errors were considered acceptable mistakes when discovered by the auditors.
The city also took steps over the past year to improve the handful of issues found by the previous year’s audit. The main recurring issue in the city has been the lack of timely financial reporting, with many departments not reconciling their monthly statements within the necessary amount of time. Alexander explained that the city had since made the records available to the departments in a more centralized hub in more manageable formats.
While Moss Adams still called the regular financial reporting a “significant deficiency” for the city, partner and auditor Julie Desimore was impressed by the changes the city had made to address previous problems.
“I would have been very concerned if we walked out here and nothing had changed since last year,” she said.
Later in its work session, the city council discussed the progress made on ending the moratorium on construction and development around the Idaho Falls Regional Airport. Planning and zoning employees created an “overlay zone” overriding some current zoning listing to bring the city in line with federal airport requirements, and the department plans to bring the final version of the changes before the council May 9 for a final vote.