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Century Approves Plan To Correct Audit Findings; Repay Nearly $2 Million To Fund
June 26, 2018
The Century Town Council has approved a “corrective action plan” with a roadmap to correcting negative audit findings….even if it’s paying back nearly $2 million at a rate of just $300 per month.
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
The 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 that would still be outstanding after the reclassification, the town council approved a good faith payment at a rate of $300 per month as recommended by Hudson.
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.
Pictured: Century Town Council members on a conference call with accountant Robert Hudson during a special council meeting Monday afternoon. NorthEscambia.com photo, click to enlarge.
Comments
7 Responses to “Century Approves Plan To Correct Audit Findings; Repay Nearly $2 Million To Fund”
If ANYONE in the private sector showed this level of incompetence they would immediately be fired, why is this tolerated from this made up, unnecessary layer of local bureaucracy? It’s like the entire Century Town government exists to waste money and make bad decisions. When is enough enough?
Help wanted:
Accountant familiar with municipal accounting..
seriously though..given enough rope..
This will be two uncorrected audits..
Tick Tock ..Tick Tock.. Tick Tock..
What will happen when the state comes in? Who will handle the water and sewer transfers..
Meanwhile shyster still keeps sticking coins in his pocket..
Yeah Dig Deeper we dug..
Well, finally some people are getting wise and asking the right questions! Did anyone hear the town council ask Mr. Hudson why he did not have this “corrective” plan in place BEFORE there were issues. The TOC pays him over $2,500 per month to oversee the Town’s accounting and to get the books ready to be audited each year.
Why has no one asked Mr. Hudson how the Town was allowed to get into this shape on his watch?!?! Furthermore, why are they “approving” his corrective action plan and not firing him?!?!
Oh yeah, that’s right, they don’t believe this is the “real world” because in the REAL world, people have to do their job!!
I agree with resident, and this is with zero interest. I do not believe the state will or should accept such a plan. century should just ask the state to forget the money rather than embarrass themselves with this type of plan. from now on live within your means.
This sounds like the Mississippi Lottery win a million get a dollar a year for a million years. With interest wont they be backing up.
And how will this play out with the Florida Joint Legislative Auditing Committee?
sigh..
$2,000,000 to be repaid, $300 per month = 6,666 months = 550 years to pay it off
Really?