Spring Hill Development News

FY25 Audit Findings and FY26 Financial Updates Presented

Ms. Holden presented the fiscal year 25 audit findings, detailing three main points: 25-001 concerning financial close and reporting, 25-002 related to SAFER grant reimbursements, and 25-003 addressing the cybersecurity plan. For 25-001, adjustments were made regarding retainage and property tax receivables, with corrected internal controls. The SAFER grant issue was identified internally before the audit and resolved by redoing reimbursements and establishing a new process with a dedicated grant specialist. The cybersecurity plan finding was due to a newer law requiring updates every two years, which will be addressed by a cybersecurity plan presented at the next meeting. Ms. Holden also provided an update on fiscal year 26 financials, noting the approaching end of the fiscal year and the process of closing books. Additionally, she presented the fiscal year 26 audit calendar, outlining key dates for the interim process, request deadlines, auditor site visits, and draft issuance before the end of the calendar year. Finally, an updated cash management policy was presented, separating it from the investment policy. Key changes include relaxing the requirement for banks to have a local branch to any branch within Tennessee and emphasizing liquidity and efficiency. The policy also reiterates existing procedures for wire transfers and check processing. The committee recommended favorable approval of the cash management policy to the Board of Mayor and Alderman. Ms. Holden also initiated a discussion on the fiscal year 313 fund residual balance, noting that she is beginning the process of identifying where residual funds from capital projects go, with initial research suggesting most will return to adequate facilities funds.