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Consultants say audit findings won’t disappear until key positions are filled
Elgin officials last week said years of tangled bookkeeping are finally giving way to timely bank reconciliations and audit-ready records, but a full cleanup will require more staff and steady work over the next few years.
Gradient Solutions consultant Lorie Lankford and Human Resources Director Pam Sanders — also serving as acting finance director — have been going through the books, prioritizing bank reconciliations, external audits and the city’s looming budget. Long-vacant positions and the need for proper training mean complete financial stability could take about three years, Lankford told City Council July 1.
“We believe significant progress has been made, but we still have a long ways to go,” Interim City Manager Isaac Turner said, framing the night’s finance update as “steering in the right direction.”
Gradient began serving the city in an “augmented staff” capacity earlier this year, leading budget preparation through a web of disorganized recordkeeping, according to Turner.
GETTING THE RECORD STRAIGHT
Lankford said her team has reconciled every city bank account except the primary operating account through May 2025. The last account is almost balanced to October 2024.
“If your bank rec is in good shape, then that leads to the rest of your financials being in good shape,” she said.
Auditors recently spent two days at City Hall and pulled more than 300 transactions covering payroll, utility billing and miscellaneous checks. Lankford expects their report in about five weeks.
“Although we were extremely responsive for the 2024 audit, you will probably still have the same findings you had from prior years … and you could have more,” she said.
According to Lankford, plans are in place to tackle each weakness, but some will persist until key hires are made.
FILLING THE GAPS
Lankford said finding and keeping talent is the city’s largest hurdle, and that hiring staff — particularly a finance director and senior accountant — is the most important factor in continuing the progress the team has made.
“I know you want to find the right person to sit in that chair to help Elgin get to the next steps,” she said. “To be systematic and do the processes as they should, timely and correctly.”
Elgin has not had a fulltime accountant since April 2024, and only one position now requires an accounting degree.
Councilman Al Rodriguez questioned the vacancies further.
According to Lankford, a finance director, senior accountant, accounts payable clerk and a project specialist should suffice once processes are untangled.
“At the very beginning it will be difficult … but I think if you can get the confident person in, that understands what needs to happen each month, that should be enough staff,” she said. “I really feel like you need two accountants on staff — I’m not saying they need to be certified, but they do need to have training and experience in governmental accounting.”
PROGRESS MADE
Sanders used the briefing to highlight how much ground staff have covered. The team produced a budget manual for the first time in six years, completed four full days of hands-on software training and consolidated budget workflow to avoid familiar confusion with multiple document versions.
“It’s not something that’s just a couple hours a day — it’s pretty in-depth. Now they’re calling me with questions when something doesn’t look right to them,” Sanders said, calling that a sign the training is working.
Council members voiced concerns about a longrange training plan so employees can handle changing laws, new software and the city’s rapid growth. Lankford recommended targeted professional development and “above basic Excel training,” stating that every staffer should understand how their work fits into the city’s overall finances.
Councilwoman Joy Casnovsky asked when the audits would stop repeating findings. Lankford said that the toughest issue — effective controls over financial disclosure — may linger until experienced accountants can draft statements before auditors arrive.
She said other items, such as pooled cash and Public Funds Investment Act reporting, could be cleared this year if transactions are posted accurately and quarterly investment reports are submitted.
BUDGET BASICS
A draft fiscal 2025-26 budget is set to reach the council July 15.
Instead of a glossy, photo- heavy booklet, Sanders said members will receive system-generated reports that show each department’s request and what was or was not funded.
Turner urged the council to keep asking hard questions to protect public trust.
“Your job is — when you have questions of whoever is sitting in this chair — to ask them,” he said.
Budget workshops are set for August.
Looking ahead, the council agreed on quarterly financial reports starting in January, as numbers begin to “get real” after the first quarter.
Turner also suggested the city pursue Government Finance Officers Association awards for its budget and audit to benchmark improvement.
“You’ll likely not get it the first year, probably not the second year, but we ought to be trying for it,” he said.
LINGERING CONCERNS
While some residents have called for a forensic audit, Turner reiterated that staff have found no signs of criminal wrongdoing.
“If we had, you would have been notified,” he said, adding that some historical issues may never be fully resolved because responsible employees are long gone.
For now, the focus is on day-to-day stability and building reserves, according to Turner.
“We’re going to pretend like we don’t have any savings, so we’re going to create a pot of savings this year, and a pot of savings for next year,” he said. “It won’t be the most beautiful picture, but it’s pretty compared to where we were at.”
The city’s month-tomonth contract with Gradient is expected to run through December.
