ARLINGTON – The city has received a clean audit containing no findings from the state Auditor’s Office for 2015.

City officials also resolved internal control issues that surfaced in audits for the previous two years, essentially closing the book on money issues centered mainly around Arlington Municipal Airport.

“We checked off all the boxes, and the system is working,” Mayor Barb Tolbert said, adding city leaders were not expecting any surprises, due in part to the thorough financial legwork done by the city administrator, finance director and staff.

City Administrator said he was happy that the auditors appreciated the work done to close out the findings, take corrective measures, and work toward better internal controls.

“We hope it makes people comfortable that we’re protecting the public’s interests and funds,” he said.

The audit focused on Open Public Meetings Act compliance; airport revenues as a follow-up to a prior audit; cash receipting and lodging tax revenues as a follow-up to a previous management letter; police department review; and general disbursements.

In a management letter, auditors reviewed the police department’s internal controls over safeguarding public resources including conversion to a new software system, procedures for tracking evidence and receipting cash.

Auditors suggested the department monitor and restrict user access to software for the New World regional police records system being used by Arlington and law enforcement agencies countywide, review property room inventory and assets, align cash receipting policies consistent with the city’s updated policy, and deposit funds within 24 hours per state law or create a waiver to extend the timeframe up to one week.

Separately, auditors reviewed the use of procurement cards by the city as a whole. They recommended that city officials evaluate the number of cards needed for city operations, and ensure review and approval of transactions in accordance with city policies.

Management letters are not part of an audit report, but are useful in pointing out minor internal controls that can be easily remedied.

In an exit conference Dec. 5 in Arlington, auditors met with city officials, the city administrator, finance staff and others to review the latest report, and to discuss how the city resolved findings reported in audits for 2013 and 2014.

Auditors while scrutinizing financial transactions found that Arlington lacked adequate internal controls over financial activities at the city-owned Arlington Airport. For example, the city did not have contracts in place for all space leased at the airport, a service agreement with a nonprofit that also leases space, or bill for airport leases and rentals in a timely manner.

In addition, the city’s use of airport office space to house the city’s community and economic development department, without billing the department, was an inappropriate use of airport resources to the order of about $11,520.

In response, the finance department reviewed all lease files and created a database; a new lease was developed with the nonprofit organization; airport billing functions, including late fee assessments, were taken over by the department; a revised cost allocation plan was developed to ensure the city’s use of the airport is appropriately funded through the general fund; and the community and economic development department repaid all rents to the airport for 2014, and continues to pay.

City officials also corrected findings in the prior audit period to ensure that internal controls over accounting and financial reporting of different types of cash and investments, and bond refunding, are adequate to ensure budget compliance and accurate financial statements.

Auditors in the 2015 report found no instances of deficiencies or non-compliance in the city’s financial statements.

Auditors credited the city for carrying out audit recommendations and improving overall internal controls.