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Audit Objective

Determine whether City of Fulton (City) officials appropriately maintained capital projects fund records, monitored project financial results against budgets and closed out records for completed projects.

Key Findings

Officials were unable to readily determine the complete financial history and position of individual projects or determine the correct capital project fund balance because:

• The Chamberlain did not maintain complete, up-to-date capital projects records for each project.
• The Council did not approve capital projects budgets, monitor their financial results, or approve the close-out of projects.
• City officials did not properly close out 279 of 308 capital projects. The records included completed projects that date back to 1987.
  • 218 of these projects had residual cash balances totaling $967,711.
  • 21 projects ended with deficits totaling $95,177 that require additional funding.

Key Recommendations

• Maintain accurate and up-to-date capital projects records for individual projects.
• Approve and monitor capital projects budgets.
• Correct the accounting errors and close completed projects in a timely manner.

City officials agreed with our findings and indicated they plan to initiate corrective action.