FY23 Finding of Material Weakness in Bank Reconciliation
City Leaders Discussed the Problem during last year's Budget Committee meetings.
Shady Cove's City Leaders were aware of this issue, and discussed the problem in April 2025, during budget meetings.
To chuckles from long-time participants, the Mayor (who has since resigned) explains how he stopped signing checks until he was made aware of a $3.5M balance in the City's accounts. In response to a question from one of the new budget commission members, multiple City leaders admit that the City stopped reconciling its books starting in 2021 and did not resume reconciliation until sometime in 2024. Finally, budget committee members talked about possible missing funds and appeared to accept that the problem was due to negligence.
SCA would like to note that during the time period in question (2021 thru early 2024), the City Administrator was Mr. Thomas Corrigan. Administrator Parry (whom Mayor Ball accused of being "incompetent") was hired by the City in mid-May 2024. City Leadership has publicly accused Administrator Parry of wasting auditor time and not being able to produce financial reports for auditors in a timely manner. What has not been previously reported (until now) was that Ms. Parry and staff were forced to manually re-reconcile the City's historical 2023 bank accounts to its ledger, in order to build sufficient documentation to support the audit. Thanks to her efforts, the FY23 audit was not found to be disclaimed (unlike its two predecessors).
Excerpt of Auditor's Letter to the City on Internal Controls, Dated Dec 8th, 2025.