Powers and Sullivan presented a review of Lawrence’s fiscal year 2022 audit, which included three reports. The U report on Federal Awards disclosed that the city had effectively utilized $86 million in federal funds without any compliance issues. The city’s pension liability was reported to be 60% funded, but the Other Post-Employment Benefits (OPEB) fund required additional attention. The management letter identified a series of issues, including outstanding old motor vehicle and personal property taxes, overpaid balances in real estate and property tax, and the need for improved reconciliations and policies. The city’s financial staff was recognized for their cooperation and efforts in addressing these issues, many of which were already resolved.

The audit process was scrutinized by the council members, who sought clarity on the procedures and the improvements implemented since the last audit. The council underscored the importance of written policies and procedures to facilitate an accurate and efficient year-end close of financial statements. Despite minor issues that were being addressed, such as reconciliations of water receivables and capital asset accounting, the city was acknowledged for its good financial standing.

A critical fiscal decision was made when the council approved a transfer of $170,000 from the salary budget to cover litigation expenses. The city attorney highlighted a reduction in outside legal fees and the assurance that existing bills would be covered by this transfer.

Another decision involved the extension of contracts with LHS Associates, the vendor responsible for printing and election-related services. With the contract having expired and new bids already in process, the council approved an extension to maintain uninterrupted services. This action ensures that essential electoral processes will continue without disruption during the transition to a new contract.

The council also focused on the city’s future development and infrastructure by reviewing and approving the annual application to HUD for Community Development Block Grant and home grants. The Financial Manager requested the council’s approval for the estimated funding with a variation margin of plus or minus 10%. Furthermore, the transfer of funds from retained earnings to Debt Service and Greater Lawrence Sanitary District accounts was given the green light.

During the meeting, an appropriation transfer for airport repair and maintenance was discussed and approved to be submitted to the full Council. However, concerns regarding conflict of interest and documentation were raised, prompting the decision to pull the matter out of committee for further scrutiny at the full Council level.