P.A.G.E.: City of Pocatello Not Compliant with Mandatory Audits

POCATELLO – DID YOU KNOW?

The City of Pocatello FY2021 Audit (10/01/20 – 09/30/21) has NOT been completed after >18 months!

The State Controller’s office sent a 03/24/23 email warning that if the audit was not received, the City would be marked non-compliant for the upcoming 1st quarter tax distribution (meaning the tax distribution would be withheld). The City responded with a letter from their auditor it would be completed by 05/31/23. A 2nd extension was then granted (the first extension was through 01/31/23) allowing the City to receive its tax distribution in April. The State Controller’s office has been extremely lenient, in our opinion.

Based on the first response letter from the auditor, the delay was caused by the lack of information available (NOT PROVIDED TO THEM) that was necessary to complete the audit dating back to at least 11/16/22.

There are 3 statutory requirements P.A.G.E. has found in relation to these audits.

1. Legislative Services Office (67-450B): Audits to be completed within 9 months (June 30th) https://legislature.idaho.gov/…/T67CH4/SECT67-450B/…
2. State Controllers Office (67-10.76): Along with other required budgetary documents, a copy of the most recent (previous year’s) audit is due by December 1st of each year. (Example, FY22 audit is due to this office on 12/01/23) https://legislature.idaho.gov/…/T67CH10/SECT67-1076/
3. Bond Bank Authority (per bond agreement contract): A copy is due to this office within 6 MONTHS or March 31st. The City has been DELINQUENT with this office for its last FOUR (4) audits resulting in large fines (a summary is in the works). They are currently still delinquent with the FY2021 audit and we are checking up on the status of the FY2022 audit which was due 03/31/23.

NOTE: Last year, a contractor (CPA) had been located to complete the FY2021 audit, but the consultant agreement agenda item was pulled off the agenda by the Mayor with no explanation to the full Council.

The FY2020 audit was completed by approximately 12/2021 – 15 months after the end of the fiscal year.