Consultants say audit-readiness work underway; city financials traced back to 12/31/2021

Keely Hines, a partner with the Bonadio Group, told the Ithaca Common Council on Feb. 11 that the firm is working with city staff to make the city "audit ready," tracing records back to the most recent independent audit on 12/31/2021.

Hines said Bonadio's team has focused on bringing transactions that live outside the city’s Munis general ledger into a single place for reconciliations and trial balances so an external audit firm can test and complete future audits. "As you know, the most recent audit that you received from an independent auditor was 12/31/2021," she said, framing the scope of the cleanup.

The consultants described a phased approach. Phase 1 centers on reconciling balances and bank accounts so activity can be rolled forward from the 12/31/2021 statements. Later steps will address capital‑project detail, interfund activity, and bringing year‑end trial balances close enough for an audit firm to begin work on subsequent years. Bonadio said some differences remain and they are prioritizing items that materially affect fund balances.

Council members asked how auditors might react to the cleanup and whether adjustments found later could create cascading delays. Jacob Skevill, Bonadio principal managing the engagement, said the goal is to reduce the risk of material misstatement so that auditors can propose adjustments without derailing future audits. He told council the firm would help draft a request for proposals and perform a soft solicitation to increase interest among audit firms.

Bonadio also outlined training and system recommendations: moving manual subsidiary ledgers into Munis and creating a routine monthly report package for the council once the historical cleanup is far enough along. The consultants said they plan to meet weekly with staff and provide periodic updates; they estimated a clearer timeline within roughly 45 days as they gather more records.

Next steps: Bonadio will continue reconciliations, work with the controller’s office on certificate preparations, and assist management in drafting an RFP to attract audit firms. Council will await updates on the timeline and any material adjustments discovered in the reconciliation process.