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No impropriety found in Tyrone auditFri, 06/20/2008 - 3:25pm
By: Ben Nelms
It has long been predicted by many in Tyrone that an audit of the town’s books would reveal significant improprieties over the past several years by the previous town administration. But those results were not forthcoming June 19 when the council was presented with a management letter from auditor Post & Associates that showed few problems. In a June 2 letter, Dan Post said, “We have examined all material invoices for capital outlay expenditures from all funds from 2003 to 2008, our examination found no material expenditures have been paid from the incorrect fund or no expenditures have been misclassified as to type of expenditure. We also verified that no inter-fund transfers have been made during this period that have not been reflected in the town’s accounting system.” Post further noted that he tested major expenditure categories from all funds from 2003-2008 to verify proper account coding in the town’s accounting system and found no material misclassifications. Post also reviewed billings for sewer services from the city of Fairburn for 2007-2008 and verified that the billing calculations matched the sewer contract terms. Post did note deficiencies in a review of the town’s financial statements. “The monthly financial reports prepared and presented to the council are not timely and contain categorization errors that are corrected on subsequent reports with no explanation,” Post said. “ We found numerous instances of retroactive journal entry postings that made the financial statements appear incorrect due to these adjusting journal entries. The finance department needs to produce correct initial financial statements within a shorter time span for the council’s review and have explanations for any prior period changes to the financial statements. We also recommend that a simplified one page ‘snapshot’ type summary financial statement be prepared monthly for the council that contains important information such as cash balances, summary departmental revenues and expenditures along with budget comparisons.” Some in Tyrone had expected a forensic audit to be performed. The audit that was performed, at a cost of $5,000, was instead one that took randomly selected items for review, said town Finance/Human Resources Director Mary Sturm. login to post comments |