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Audit reports shed negative light on city finances
To the editor:
The following excerpts from state audit reports and notes indicate some very serious troubles in the city of Blytheville. The following data appears to indicate that all is not well in the city of Blytheville as will be shown by the excerpt from audit reports concerning the bookkeeping for the city of Blytheville:
1. 2010 audit report except: The city failed to properly file IRS form 941and remit federal tax payments in 2009 and 2010, except for the second quarter of 2010, and had minor discrepancies in the amounts reported and submitted for the 2004 through 2008.
2. 2004 audit report excerpt: "The treasurer did not maintain accurate and complete accounting records due to a computer failure. Records should be printed monthly and maintained and regularly computer backups performed and stored off site to ensure the safety and integrity of city records. The treasurer was holding checks to vendors and reimbursements to other accounts up to and in excess of one year before mailing or depositing them at the years end. The general fund account payable bank reconciliation shows a deficit balance of $272,964. Officials should institute measures to correct the city's cash flow problems and thus eliminate the holding of issued checks."
3. 2005 Audit report excerpt: "Again, computer failures and inadequate computer backup in the treasurer's office contributed to posting errors, inaccurate journal entries and un-recorded transactions. As a result, cash balances were overstated by $1.34 million and attributions of $1.1 million were not reflexed in the city's unaudited financial records."
4. 2006 audit report excerpt: "The general fund financial records contained misstatements primarily due to omitted entries and posting errors for cash, receipts, and disbursements of $1,816,554, $1,129.101 and $ 1,347.212, respectively. The street fund financial records contained misstatements primarily due to omitted entries and posting errors for cash, receipts, entries and posting errors for cash, receipts, and disbursements of $135,611, $1,129,101 and $321,640, respectively. After the above corrections were made the financial records for the general fund still contained an unreconciled/ unidentified amount of $314,457.
5. 2007 audit report excerpt: "The financial records again contained misstatements primarily due to omitted entries and posting errors for cash, receipts and disbursements of $16,847, $724,816 and $1,086,575, respectively, and an unreconciled/unidentified amount of $107,470. The effect of these omissions and misstatements constitutes a significant control deficiency in providing inaccurate information to the public and are materially incorrect.
6. 2008 and 2009 audit report excerpt:
2008: "General fund financial records also contained material misstatements primarily due to classification errors, and omitted entries for assets, liabilities, revenues, expenditures and other financing sources and uses of $1,115,107, $1,219,525, $1,010466, $416,0234 and $654,240, respectively."
2009: "The 2009 general fund financial records contained material misstatements primarily due to classification errors and omitted entries for assets, liabilities, financing sources and uses of $600,667, $2,526,582, $280,006, $788,818 and $25,269.
Note: Where were the mayor, city finance director, city treasurer and city council members during these years? Each department mentioned has a legal responsibility to read the audit reports and act to correct the deficiencies. Is there a signal being submitted each year for a seven-year period of time that this serious problem is being totally ignored by many of the city leaders?