Prestonville 2013 audit completed

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By Sandie Banks

Prestonville City Committee received its 2013 audit report March 3 during a special meeting at city hall.

Prestonville City Clerk Allison Willhoite shared the results of the audit conducted by Ross & Company PLLC for the period July 1, 2012, till June 30, 2013. 

Willhoite said a special meeting was called on the recommendation of the City Attorney Corey Gamm.  Gamm told Willhoite the audit needs to be published within 30 days. But before that could happen, it needed to be presented to city commissioners and the mayor.

The auditors found a couple of small items and made recommendations to the board on how to correct those items.

One of the comments by the auditor stated that the city “lacks an adequate segregation of accounting duties.”  This occurs when the city does not have the resources to hire additional staff to handle some of the accounting duties, according to city officials.  The auditor recommended the city implement compensating controls as described in the “Kentucky Cities Financial Manual.”

Willhoite told the commission that she would look into getting a copy of this manual.

The other comment from the auditor stated that the city’s adopted budget was incomplete.  The auditors recommended “the city include expected revenues and prior year surplus when drafting future budgets.”  The auditors said the omission of these items make it difficult for a reader to determine how much of the current, or prior year surplus, the city plans to use.

Commissioner Louis Spencer asked Willhoite about the item marked simply as “taxes” on the audit.  Willhoite told him she believes the auditor had “lumped the taxes all together” under that one label.

Spencer commented on the fact that the city’s expenditures were $111,655 but their revenue was only $101, 118.  

Mayor Billy Walker told the board the auditors are paid up till next year.  He said the next audit would not need to be done till 2015, because the city is only required to conduct a full audit on odd years.

Willhoite told the commission she believes they need to create a budget and amend it monthly.

Spencer said he believes they need to see what they are taking in and what they are spending during the year.

“Next meeting it will be brought up,” Walker said, referring to next year’s budget.  “If we wait till after the first of July, we lose money from the county,” said Walker.

Spencer agreed that commissioners needed to start work on the next year’s budget.  “I think we are learning,” said Spencer.

The audit will be published in The News-Democrat on March 13.  A copy of the audit is available at the Prestonville City Hall. Citizens may obtain a copy of the audit for a fee of 25 cents per page. 

The next regular meeting of the City of Prestonville Commission will be Monday, March 17 at the Prestonville City Hall.