An independent auditor told the Menlo City Council that the city’s bookkeeping was in “worse shape this year than it was last year.”
CPA Chrissan Thomas said bank accounts had not been reconciled, months of revenue had not been recorded, payroll and property tax entries contained errors, and some bank statements had not been opened. Auditors also struggled to locate invoices and other supporting records.
Thomas warned that some state grant funds had not been properly closed out and could have to be returned. She said much of the audit involved reconstructing the city’s financial records rather than conducting a normal review.
Thomas said Menlo can recover by improving internal controls, reconciling accounts monthly and closely monitoring financial reports. She praised new City Clerk Julie Willingham but said it could take several months to bring the books current.
