Alexander city
council members heard a report Monday evening from Mayor Paul
Mitchell concerning the audit of the 2016 calendar year conducted by
the Arkansas Division of Legislative Audit. The most egregious of the
violations listed was dealt with during the January meeting. The
violation concerns paying city employees for additional work outside
their usual duties without an ordinance permitting the practice.
The audit states,
“The City paid the District Court Clerk $842 for cleaning services
without an authorizing ordinance, in noncompliance with Ark. Code
Ann. § 14-42-107.” The $842 was for one year of cleaning services.
At
the regular January meeting council
members approved an ordinance, “Permitting council members,
officials, or municipal employees to conduct business with the City
of Alexander.” The ordinance sets a maximum annual dollar amount of
$2,000.
As he did in
January, Mitchell explained the court clerk has been paid extra to
come in when city hall is closed to clean. Mitchell said hiring city
employees for other jobs has been a common practice in the past by
other mayors. Since no existing ordinance could be found one was
written and approved by the council.
That was the only
violation attributed to the mayor and one of several violations
attributed to the treasurer. Others listed in the treasurer section
included;
"1. Bank
reconciliations were not always accurate and approved by someone
other than the preparer, as required by Ark. Code Ann. § 14-59-108.
‘2. Invoices and
supporting documentation again were not always maintained, as
required by Ark. Code Ann. § 14-59-105.
‘3. Fixed asset
records were established, but did not include additions, deletions,
control totals, serial numbers, and descriptions of property and
amounts, as required by Ark. Code Ann. § 14-59-107. A similar
finding was issued in the previous report.
‘4. In 2014 Sales
and Use Tax monies were not prorated correctly. As a result of these
transactions, $42,617 is due to the Police Fund from the General Fund
at December 31, 2016. A similar finding was noted in the previous
report.
‘5. As noted in
the previous report, restricted monies were paid from the Parks and
Recreation Fund to the General Fund. As a result of these
transactions $46,254 is due to the Parks and Recreation Fund from the
General Fund at December 31, 2016.
‘6. Two Rural Fire
Protection Fund warrants totaling $16,610, issued to the City on
November 21, 2016, were not deposited until January 20, 2017.
‘7. The City did
not establish by ordinance a method that provides for internal
accounting controls and documentation for audit and accounting
purposes for a private contractor, as required by Ark. Code Ann. §
14-59-115.”
Bookkeeper Jo An
Churchill told council members half of the $42,617 and $46,254 have
been returned to their respective accounts. The two transactions
occurred during the 2014 calendar year when Michelle Hobbs was mayor.
Because the years 2014 and 2015 were both audited in 2016 the report
wasn’t completed until last year, which is when the mayor and
council were made aware of the financial errors.
Other
“non-compliance” issues listed in the audit are;
District Court Clerk
“Balances
remaining in the bank again were not identified with receipts issued
for cases not yet adjudicated and payments made on all unpaid time
accounts, as required by Ark. Code Ann. § 16-10-209.”
Police Chief
-
“A list of
all uniform written citation books was established for 2016, but did
not include each book.
-
‘Uniform
citation books were not issued sequentially.
-
‘Completed
ticket books were not turned over to the District Court Clerk in a
timely manner.”
“A similar finding
was noted in the previous report,” according to the audit.
In 2016 the city had
two police chiefs. John Fenton resigned February 12, 2016 and was
replaced by Robert Burnett who was hired March 21, 2016.
Mitchell said he has
already sent a response to Legislative Audit explaining how the
errors will be fixed. That included passage of the ordinance in
January. The auditing of 2017 has already begun.
In other action at
the March 19 meeting;
Council
members approved the Electronic Transfer of Funds between accounts
when writing a check is not an option. Bookkeeper Jo An Churchill
told council members in December, 2017 money needed to be transferred
from the general fund to the fire department fund for a check to
clear. Normally she would write a check but no one with the authority
to sign it was available so she transferred the funds electronically.
Checks must have two signatures. She said she was asking for council
approval in case that situation ever occurs again.
The next regular meeting of the Alexander City Council is
Monday, April 16. Meetings start at 6 PM and are held in the
courtroom at the City of Alexander City Hall. The public is invited
to attend.
