The city has never had major problems with its bookkeeping, but
perfection is rare for any agency or business, especially one with
a thick ledger.
Gilroy – The city has never had major problems with its bookkeeping, but perfection is rare for any agency or business, especially one with a thick ledger. This year, however, independent auditors signed off on the city’s financial statements without making a single adjustment.
The city audit contained “no red flags,” City Administrator Jay Baksa said. He distributed copies of the report to City Council members Monday night. The audit, which covers the fiscal year between July 2003 and June 2004, was conducted by certified public accountants Conrad and Associates, of Irvine.
An audit generally involves sifting through financial statements to ensure they are free of any misstatements, and reviewing if the city has applied generally accepted accounting principles.
“We always have an audit that says the books were accurately prepared,” said City Treasurer Michael Dorn “But usually, they say this item here should have gone there. That’s what’s amazing – out of tens of thousands of transactions … not a single one should have been accounted for in a different manner.”
While most people find the process less than thrilling, a sound audit plays a vital role in gaining a healthy bond rating – a crucial measure of the city’s credit-worthiness and ability to borrow.
Asked how it was that the city failed to make any mistakes, Dorn replied: “We’re just that good.”