Alexander audit report doesn’t mean what it appears to say

Two sentences in the 2014-2015 City of Alexander Audit Report could definitely fall into the “We knew what we meant when we wrote it” category. The two statements in question concern funds transferred from Parks and Recreation to the General Fund and not enough sales tax revenue being transferred from the General Fund to the Police Fund. In an E-mail this week city bookkeeper JoAn Churchill explained that the two instances of financial mishandling stated in the report only occurred in 2014, even though it appears activity in 2015 is also involved.

In the audit it says, “[R]estricted monies were paid from the Parks and Recreation Fund to the General Fund. As a result of these transactions $46,254 and $46,654 are due to the Parks and Recreation Fund from the General Fund in 2015 and 2014, respectively.”

“Restricted” refers to a one-cent sales tax, approved by voters, with the added stipulation that two-eighths (one-quarter) of the collected tax goes to parks and recreation, one-eighth to the fire department and five-eighths to the police department. That revenue can only be spent in those departments.

The second statement says, “In 2014 Sales and Use Tax monies were not prorated correctly. As a result of these transactions $42,617 and $42,736 are due to the Police Fund from the General Fund in 2015 and 2014, respectively.”

Churchill said because additional revenue was placed in the two funds during 2015 the auditors were trying to convey the new amounts owed both funds. As of December 31, 2015 The General Fund owes the Parks and Recreation Fund $46,254 and the Police Fund is owed $42,617.

The mayor in 2014 was Michelle Hobbs and the bookkeeper was Ruby Whittaker. Hobbs was appointed mayor in November 2012 when current mayor Paul Mitchell lost a recall election after serving only two years of his first term. Hobbs lost her attempt to be elected mayor to Mitchell in 2014. Mitchell has been mayor since January 1, 2015. Whittaker was bookkeeper from May 6, 2013 until she resigned effective January 2, 2015. Whittaker was replaced by the current bookkeeper JoAn Churchill on January 2, 2015.