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Posted on: July 29, 2022

City of Killeen releases results of Donation Funds Audit

Analysis of City’s Donation-Funded Programs

KILLEEN, Texas (July 29, 2022) - City Auditor, Matthew Grady, has conducted an independent review of the City of Killeen’s Donation-Funded Programs and published his findings for public review.  The audit focused on several areas, including: (1) verifying all donation accounts currently in existence; (2) reviewing revenues and expenditures for Fiscal Years 2017 through 2021; (3) determining the appropriateness of expenditures; and (4) identifying opportunities for best practice improvements. 

The City Auditor’s review found that donation funds were properly recorded and used for their intended purposes. Cash collection procedures reviewed appeared adequate to safeguard cash donations received.  There was room for improvement in the tracking of expenditures where multiple donation funds exist under one department; however, Finance staff were aware of the issue and had begun taking corrective action.  

The audit also found that the Senior Citizen Utility Assistance Program had sufficient reserves to justify an increase in assistance payments to the City’s qualifying senior citizens.  Annual donations to the Fund average about $11,000, nearly twice the average annual payout of $5,700.  The annual excess of donations over payouts has allowed the fund to accumulate a reserve of about $72,000.  City Council previously authorized an increase in assistance payments in June 2014.  The audit recommended that management consider seeking approval from City Council for another increase in assistance payments to adjust for recent rate increases, as well as the implementation of the Street Maintenance Fee.  

Finally, the City continues to maintain approximately $18,000 in its Special Event Center Fountain Fund. The funds were received over a decade ago as part of a fundraising campaign related to the City’s 125th Anniversary celebration. The estimated cost of the fountain far outstripped the funds raised, and the project was never completed. Nevertheless, the City accepted the donations and continues to maintain them, creating at least the expectation that the funds will at some point be used for their intended purpose.  The City Auditor recommended considering options for the long-held funds.

The full report is on the City of Killeen’s website:

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