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Accountant Presents Plan To Correct Century Audit Findings
June 21, 2018
Century’s accountant presented a draft “corrective action plan” Wednesday afternoon with details on how the town can correct negative audit findings.
The town’s most recent audit, covering the fiscal year ending in September 2016, found deteriorating financial conditions that could result in a future “financial emergency”, $3.83 million in transferred special revenue funds that must be repaid, $1.4 million in expenditures in violation of state statutes, over $5,000 in a bank account that did not appear on the books and other deficiencies.
The plan outlined by accountant Robert Hudson proposes fixes and changes for each finding.
he audit found the town had borrowed nearly $4 million from a special revenue fund and those funds should be repaid.
Hudson said about $600,000 derived from the local option gas tax was borrowed from the special revenue fund, but those dollars can be reclassified as operating transfers, not a loan, because Florida law allows the funds to be used for “street maintenance”. And about $1.5 million can be reclassified as transfers for certain infrastructure items and vehicles.
As for the nearly $2 million in loans from special revenue, Hudson said the town should start a repayment plan from the general fund, even if just a few hundred dollars per month.
The bank account not included in the general ledger, as found by the audit, was a “clearing account” where daily deposits were deposited into an account and transferred each day, Hudson said. Once the town started receiving credit cards that settlement would not occur for a few days after submission to the bank, leaving a balance in the account.
Hudson’s corrective action plan will be considered during a special council meeting on Monday, June 25 at 4 p.m.
Luis Gomez and Sandra McMurray-Jackson were the only council members present at Wednesday’s workshop. Ann Brooks, Ben Boutwell and Gary Riley did not attend.
Pictured: Century council members Luis Gomez and Sandra McMurray-Jackson listen as accountant Robert Hudson ( far right) presents an audit finding corrective action plan during Century Town Council workshop Wednesday afternoon. NorthEscambia.com photo, click to enlarge.
Comments
5 Responses to “Accountant Presents Plan To Correct Century Audit Findings”
I have been wondering where a small town like Century has been getting all the money they have been spending . Amazing that no one is responsible for this SNAFU,
!!
So, the accountant that couldn’t keep his books straight comes up with a solution to fix his books? And people are buying this? Wow!
@ M in Bratt – yes this is the same accountant.
It’s frustrating that people can’t, don’t, or they are unwilling to see the real issues here. The accountant that SHOULD have classified these transactions correctly the first time AND the same accountant that left the bank accountant off the general ledger is now presenting a “corrective action plan” to “fix” his own incompetency and lack of accounting oversight.
The State of Florida is not going to look favorably on paying back a $2M loan to a restricted revenue fund at the rate of “a few hundred dollars per month”.
Also, the State of Florida is smart enough to know that a bank account (even if “just” a clearing account) must always be reported on a general ledger for reasons just as the one Mr. Hudson is pointing out.
I do understand that the accountant cannot be held accountable for the TOC not having sufficient funds to cover their annual operating expenditures. But, I do not understand why the accountant is not being held accountable for failing to provide competent and adequate oversight of the Town’s accounting. AND, he gets paid very well to perform this oversight to the Town.
A few hundred dollars a month to repay a 2 million dollar loan…
How many years is it going to take to repay this loan?
Just wondering if this is the same accountant that brought them to this financial situation?