The Alexander City Council received the annual Legislative Audit
report for the calendar year 2022. The audit is conducted annually by
the State. The audit for 2022 was performed in 2023.
"We evaluated the City’s compliance with certain state laws
concerning general and district court accounting, budgeting,
purchasing, and investing and depositing of public funds," the
cover letter states. "During our evaluation, noncompliance with
state law and accepted accounting practices was noted in the offices
of the Mayor, Treasurer, and District Court Clerk."
"We have the legislative audit review from the (year) 2022 that
has now been completed," Mayor Crystal Herrmann said during the
council's January 22 meeting. "Legislative audit said actually
one of the dings on this audit is not bringing this to the very next
council meeting once it's presented."
The audit listed the following issues as in "Noncompliance."
Mayor
"1. The Mayor was overpaid $1,620, and his wages were not taxed
from January through September 2022; therefore, $30,780 of his salary
was not reported on his IRS Form W-2. The Mayor’s term ended in
December 2022.
"2. The governing body (Alexander City Council" did not
review the prior year report and accompanying comments at the first
regularly scheduled meeting following receipt of the report, in
noncompliance with Ark. Code Ann. § 10-4-418."
Treasurer
"Accounting procedures for municipalities are set forth in Ark.
Code Ann. §§ 14-59-101 - 14-59-119. The City was not in compliance
with these codes and other accounting procedures as follows:"
- "Receipts were not deposited in a timely manner."
- "Prenumbered receipts were not issued for all funds
received."
- "Cash receipts and disbursements journals were not properly
posted and reconciled with bank deposits
-
and withdrawals."
- "Cash receipts and disbursements journals and monthly bank
reconciliations were not prepared for the Debt Service Fund."
- "Monthly bank reconciliations were prepared but were not
accurate."
- "The annual financial statements were not published by April
1 of the following year." (2023)
- "A detailed fixed asset listing was not maintained to
include additions, deletions, and a control total."
- "Monthly financial reports were not always submitted to the
council."
District Court Clerk
"Balances remaining in the bank were not identified with
receipts issued for cases not yet adjudicated and payments made on
all unpaid individual time accounts, as required by Ark. Code Ann. §
16-10-209. A similar finding was noted in the previous report."
"So
I think just for the record, everybody's clear that this was for the
year 2022," Council Member Joy Gray said. "So this was not
last year."
"And
then so it looks like under the treasurer portion, there were quite a
few points about receipts," Gray continued. "How we won't
continue to make these mistakes? That's my question for that."
Each
individual, responsible for the noncompliance issues, must write a
letter to Legislative Audit explaining what will be done to address
those problems. Two of those individuals are now gone. The previous
mayor, Paul Mitchell, lost his re-election bid in the November 2023
election. City Treasurer JoAn Churchill resigned in December.
"So
the mayor (Crystal Herrmann) had to write a letter already, let them
know the action plan on the over-payment and the IRS thing,"
Office Manager Jennifer Hill said. "So the (new) treasurer
herself will have to come up with her own."
Alexander
is now searching for an interim city treasurer to fill the void until
the current term expires December 31. The only legal qualifications
are that the applicant must live in the city limits of Alexander, be
18 or older and be a registered voter. Having an accounting
background would be a plus. Resumes should be turned in at City Hall
to either Mayor Herrmann or Office Manager Jennifer Hill.
Department
Reports presented during January 22 meeting:
Salt
and sand stock piles to be refilled
Street
and Parks Department Superintendent David Durham was unavailable to
attend the January 22 council meeting. His report was provided by
Mayor Herrmann. The recent weather was at the center of the report.
"They
(street crews) had a long run," Herrmann began. "They
started on Sunday, Monday, Tuesday with the roads."
"We're
completely out of salt and sand," she continued. "We have
an order in, but it might actually take about five or seven days
before we can bring any more. We're going to go ahead and do the
stockpile over again because it's still early in our winter."
Police
Report for 2023
Police
Chief Robert Burnett provided council members with a quick rundown of
the statistics for the calendar year 2023.
"(W)e
had 10,164 calls for service this past year," Burnett said. "We
had for citations, regular citations and warnings and warrants that
we served; there was 4,297."
Wrapping
up with the total dollar amount deposited into the court fund Burnett
said, "The final of all the basic deposits from (the) year were
added up to over 408,000 (dollars)."
Fire
Department; More training and certification
"One
of the goals of this year ... is to start doing additional type of
training and certification for our guys," Fire Chief Ryan
McCormick told council members. "We're sending two right now to
the EMT (Emergency Medical Technician) school, to medical, EMS
(Emergency Medical Services), and we're also starting some hazards
material classes. We're trying to keep up our hazardous material
response."
Mayor
gives Treasurer's report
With
the resignation of City Treasurer JoAn Churchill in December, Mayor
Crystal Herrmann provided brief comments concerning the monthly
financial report. The search for an interim treasurer has begun.
"It
(financial report) was created by the office (staff)," Herrman
said. "We have the financial update by reconciliation."
Hess
mess, Bass Pro grant
In
the Mayor's monthly report Mayor Herrmann addressed several
complaints she has received concerning people dumping trash around
the dumpster at the closed Hess station. Hess is located along E. 1st
Street.
Hess
was purchased last year by SQRL
Fuel. Renovation of the building began but then stopped.
"So
I know I've got a lot of calls about the HESS, the dumpster and all
that," Herrmann said. "I've been working on that for a
couple of months. [W]e've actually even tracked down some people that
are illegally dumping."
"SQRL
did purchase the HESS," Herrmann continued. "I have even
red tagged the store when it got all grown up (weeds) because it was
really bad. ... They sent somebody out, mowed and cleaned up and got
all the trash up and everything. But they did not remove the
dumpster."
Herrmann
said SQRL was given two weeks
otherwise they'll be tagged again and be, "[I]n that end of the
courtroom."
Herrmann
then moved on to the topic of another grant she is attempting to
acquire.
"This
past month I put in (for) a grant with Bass Pro," Herrmann said.
"[T]hey have a $10,000 grant community opportunity."
Herrmann
has been working with Arkansas Game and Fish in order to make the
pond, at the south end of the former Alexander Human Development
Center, safe for stocking it with fish. Now she's trying to find a
way to finance the renovation of the pond dock and nearby restroom
building without using park funds.
Next meeting
The next meeting of the Alexander City Council is Tuesday, February
20 at 6:00 PM in the courtroom at the Alexander Municipal Complex.
The public is invited to attend.