FY2014 Recommended Budget - City of Surprise

Financial Review
• FY2010 audit found numerous accounting errors (more
than 30 PPAs) related to construction of Civic Center
ffacilities. iliti MMore th than $70 million illi hhad d bbeen misallocated i ll t d
between numerous funds
– City y hired consultant to review impact p fees transactions back
through 2007
• FY2011 audit found additional accounting errors
(another ( 10 PPAs), ), with the impact p coming g more directly y
on the general fund, transferring approximately $10M
out of the general fund and erasing its fund balance
reserve to an estimated $500,000. $ , City y received a
“qualified opinion” for its FY2011 audit
– Financial policies state reserves to be two-months worth of
operating costs
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