Members of the Alexander City Council will once again take up the issue
concerning the check writing company Paychex. Aldermen are being asked to
either change the services provided by Paychex to come into compliance with
state law, or cancel the contract. It was discussed at a meeting held April 6,
but council members wanted more information before making the decision.
In 2013, when Michelle Hobbs was mayor, the City of Alexander hired
PayChex to handle its payroll. The Arkansas Division of Legislative Audit issued
a report in February stating some of the duties being performed by the company
violate state law. The annual audit was for the 2013 calendar year.
The audit states, "The City’s agreement with a private company to
perform payroll services, including electronic drafting of a City bank account
for the payroll tax deposits, is in noncompliance with Ark. Code Ann. §
14-59-115."
Section (2) (B) of the law states, "The governing body of a
municipality may not assign duties relating to the receipting or disbursing of
funds to anyone other than an employee of the municipality."
Essentially, it is illegal for Paychex to write checks and transfer
funds from one account to another.
The Paychex issue is on the agenda for the regular May meeting of the
Alexander City Council to be held tomorrow evening, Monday, May 18, 6 pm in
city hall. Regular meetings are held the third Monday of the month. The public
is invited to attend.
Also listed on the agenda is a report from the recently formed planning
commission.
I have a question. Why is it now necessary to use an outside company to simply write payroll checks, and take taxes when there are now very capable, competent, qualified people who can do this and are already doing the bulk of the work, why pay this company 6000 (or more) tax dollars per year, for this seems like a waste of my tax dollars, and I believe very not smart.
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