Finance staff explains pension accounting correction in FY24/25 audit

At the Sept. 3 budget meeting, finance staff explained an accounting issue in the FY24/25 audit that briefly overstated gains in Munis and required correction.

Ms. Carlos told the commission that a period-13 auditor adjustment posted to the pension funds in Munis duplicated another adjustment, making the FY24 numbers appear overstated. The FY25 statements were corrected and the finance team could not reopen FY24 to change closed entries; she gave corrected figures for gains—$2,300,000 for the general fund and $3,300,000 for police and fire in FY25 presentation.

Commissioners asked clarifying questions and staff confirmed this was not an investment loss but an accounting-entry error that has been corrected in current statements.

Why it matters: Accurate accounting informs budget decisions and reserve calculations; staff's correction clarifies the city's fiscal position ahead of final budget adoption.