*Approve Plan of Action to correct finding by outside auditor of a material weakness in the FY 2023-24 Annual Comprehensive Financial Report

The City of Portland ordains. Section 1. The Council finds: Moss Adams has been contracted by the City to audit the City’s financial records for FY 2023-24. The Moss Adams audi t found a material weakness in the Bureau of Transportation’s construction in progress, as reflected in the Report of Independent Auditors that accompanies the City’s Annual Comprehensive Financial Report. The audit finding determined the Bureau of Transportation failed to close completed multiple capital projects and transfer those projects to fixed assets for multiple years. The material weakness required an accounting transaction reclassing $262 million of capital projects to fixed assets. The correcting transaction also required expensing $12 million of missed depreciation expense. When a material weakness is reported by the City’s financial auditor, the Oregon Secretary of State requires the City to file a corrective Plan of Action. The Plan of Action must be approved by the City Council, as the governing body, and be filed with the Oregon Secretary of State within 30 days of filing the Annual Comprehensive Financial Report. The Annual Comprehensive Financial Report is expected to be filed by the City no later than December 31, 2024. NOW, THEREFORE, the Council directs: The Plan of Action in Exhibit A is adopted. Section 2. The Council declares that an emergency exists because the Plan of Action must be filed within the Oregon Secretary of State’s Office within 30 days of the FY 2024 Annual Comprehensive Financial Report in accordance with the requirements of ORS 297.466(2); therefore, this Ordinance shall be in full force and effect after its passage by the Council.