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Century Writes 41 Payroll Checks Without Funds To Cover Them, Skips Remitting Payments To IRS
July 27, 2018
During the first half of this year, the Town of Century wrote 41 payroll checks without funds to cover them and missed legally required payroll deposits with the IRS, according to town council President Ann Brooks.
The town’s most recent independent financial audit found that Century’s deteriorating financial conditions could result in a future ‘financial emergency”.
Brooks opened the town council’s first budget workshop the upcoming fiscal year Thursday afternoon with a warning about several financial problems she found only through public records requests. She said the council was never informed of the 41 payroll checks that were written without funds available.
Bank statements reflect 41 insufficient fund charges totaling $1,394 during from February through June. The bank paid each check rather than returning them, resulting in a frequent negative balance. The overdraft fees were ev eventually refunded. United Bank also denied a loan to restructure town debt.
“This happened because there was not sufficient money to cover the checks written on the account,” Brooks said. “This is poor management.”
“The month of May we did not remit any payroll taxes to the IRS. Why? Because there was not enough money in the payroll bank account to pay the taxes,” Brooks said. She said the assistant clerk responsible for remitting the payroll taxes warned the town clerk and accountant Robert Hudson that there were insufficient funds to pay the IRS.
“Yet the council was never informed anything about this. We need to do a better job controlling our spending,” the council president said.
Brooks called for Mayor Henry Hawkins to do a better job keeping the town informed about debt refinance options and the town’s finances. He did not respond.
Hundson said he realized when reviewing the books in June that the payroll taxes were not paid in May, and he said he notified the mayor and Town Clerk Kim Godwin. He said the payroll tax deposits listed in the town’s books were still outstanding at the time of his review.
Hudson said funds to cover payroll taxes were not available in the bank account due to decreased revenue from the town’s gas department.
Brooks and Ben Boutwell were the only council members to attend Thursday’s budget workshop. Council members Luis Gomez, Sandra McMurray Jackson and Gary Riley did not attend.
Pictured top: Accountant Robert Hudson (left) explains financial documents to Century council members Ann Brooks and Ben Boutwell Thursday afternoon. NorthEscambia.com photos, click to enlarge.
Comments
62 Responses to “Century Writes 41 Payroll Checks Without Funds To Cover Them, Skips Remitting Payments To IRS”
@Citizen; You seem concerned that Century will go in debt. It’s too late for that worry, they are already MILLIONS of dollars in debt.You see in the budget line items for “debt service”. That is just the payment on the debt, not the whole debt. I wonder if along with bouncing checks, they are not paying on their debt. The tax payers need to pay close attention that they don’t jump up and sell assets (gas dept), and blow the proceeds of the sale rather than apply it to the large debt they have accrued.
Another older article. Ok some was transfered from the gas tax but most was transferred from most likely state grants is special fund to prop up the town which is inappropriate use if funds . Most likely no one involved, council, accountant employees present mayor or past mayor really want to call for a full audit because they are culpable. Do you want them to keep trying to cover this up or make the call? It is coming. I would think it best to ordiginate from the council. Make the call for an audit and investigation Put the cards on the table. They already are actually. http://www.northescambia.com/2018/06/accountant-presents-plan-to-correct-century-audit-findings
People need to Google Defuniak Springs audit. Look like similar things are and have been happening there. Turning in late audits loses money for the town. It says a state audit costs money. It may be time to unincorporated Century before debt occurs and is divided between the citizens to have to pay off, if that is how it works.
Remember this came out just this past November
http://www.northescambia.com/2017/11/century-audit-finds-millions-to-be-repaid-to-special-fund-deteriorating-financial-conditions
The Mayor stated on Channel 3 that the council will figure how to repay this.
How?
I think it is common knowledge this cannot be paid back.
>>>How does the town of Century back millions on bond monies with Gulf Breeze if they are not a solvent entity.
They do not back the Capital Trust Agency loans….Century is a second signature to Gulf Breeze certifying that the bonds issued by CTA serve a public purpose. Century has no money involved, other than being paid for their service, and has no financial risk in the CTA.
How does the town of Century back millions on bond monies with Gulf Breeze if they are not a solvent entity. That whole deal between Century and Gulf Breeze has always smelled fishy to me.
@ Clueless Bob
I can appreciate you delving into the mystery. I also know Ms Brooks has requested full financial disclosure of town business to be provided at the meetings, monthly. I find the problem lies more with the fact she had to do a public records request to get this information.
Oh and some are spinning it now @ #take back our town..I call B/S
What I don’t get is they publicly announce grants like huge economic grants then don’t account for them, even a story was run the past mayor was going to use some in Flomaton AL how does that work?
I am not interested in prosecuting crimes..just straighten this crap out..
If you really want to address this, any, and all records should be on a website (as called by transparency Florida) to be viewed by the public, as well as the agenda..heck even televise the meetings. Why has the town attorney who is abreast of the Florida Statutes necessary to run a municipality not advised them accordingly..Well actually yes an advisor did come and they didn’t take his advise..
I don’t know..yes ..just what is the story here?
Let’s not hang her out to dry, as far as I can tell she has more brains than all of them put together although I imagine she could have used a few more brains on the council instead of yes men and pass the buck folks and/ or people that thought the Mayor is suppose to be the boss man.
Don’t know why they pay an accountant that fails them.
They need a full audit to own up to failures and/ or address changes that need to be made and/or throw in the towel..call it quits.
“You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.”
REGARDING:
“A Certified+Public+Accountant sitting at the council table during meetings (also cashing her council checks) and never once raised questions about finances, funds, payroll until now?”
She has asked questions and finally had to use the force of law to get them answered rather than the full and complete compliance one would expect. It is also hard to fault her for not giving everyone the benefit of the doubt until such time as she was shown it was unjustified.
She is not the town’s clerk, mayor or accountant. She has a different job as a member of the town council.
David for trust but verify
A full operational and/or performance audit needs to be requested by anyone and everyone via email and or phone, with in or with out the Town of Century. It is our right as citizens and the duty of the government to call for one for transparency, accountability and trust and also for assistance.
Florida Auditor General
https://flauditor.gov/pages/contact_us.html
E-mail: flaudgen@aud.state.fl.us
Senator Doug Broxson
https://www.flsenate.gov/Senators/s1
Representative Clay Ingram
https://www.myfloridahouse.gov/Sections/Representatives/details.aspx?MemberId=4493
Joint Legislative Auditing Committee
Email: jlac@leg.state.fl.us
http://www.leg.state.fl.us/cgi-bin/View_Page.pl?Directory=committees/joint/Jcla/&File=index_css.html&Tab=committees
Just to clear the air, I’m not making personal attacks on Mrs. Hammond, Mrs. Jackson, or Ms. Brooks. As citizens and business owners they are entitled to request a loan from the development fund. I am disappointed at the way the town conducts business. The public should have been allowed to benefit from the fund too with appropriate checks and balances.
>>> What I dont understand is why my loan was singled out and records requested but not on Ms Brooks nor Ms Jackson
Complete public records requests were done on all loans and all loan program information, but so far the town has not fully complied or provided any reason why not.
I agree with the posts that are serious: Resident; Citizen, who has several good posts; M in Bratt; Toni; Watcher; and Edna Barnes all have posts worth reading again.
Problems in this town government have existed for far too long and something needs to change soon. A lot of good people in the town and in surrounding areas serviced by the town deserve better.
There may be a power struggle, may be a good ole boy attitude in play, may be that the town charter is not being followed appropriately, may be incompetence plain and simple. Whatever. It needs to change.
Some of the citizens elected as our mayor a man who was and is unsuited for the job. He thinks his job is to take care of the employees when it is to take care of the town and citizens. He talks in terms of the “community” when it should be the entire town. He believes the town council is his council when it is the town’s council and is the governing body. He deliberately keeps the council members, at least some of them, in the dark and selectively fails to inform them of issues until he needs them to bail him out. He is not a bad man, just is not a good mayor. He has made mistake after mistake and has contributed greatly to the problems. Granted, some problems existed long before he became mayor.
He and the three council members who were not at the budget workshop should have been there. The mayor, all council members and appropriate staff should work together to resolve the town’s financial and other problems. Those who do not want to participate should resign and open their seats for citizens who care.
The town charter should be followed, enforced or changed.
Still going. Nothing outlasts the energizer bunny except this. Northescambia.com, get the talk show going I’m telling you. Lol.
I like @Edna E Barnes beginning sentence “if there was anyone who cares to look for records” Great point, I like common logic. So, I’ll start my sentence the same way with logic and question.
If there was a member of city council, that was a CPA and even the president, why in the world wouldn’t the first questions and concerns from her in EVERY meeting not be in regards to the town’s current financial standing and funds? I mean really think about it. Was this the gotcha attempt to hold the information and blame the newcomers in an election season? If so, that’s a real issue and the town suffers for some agenda. This is right out of CNN’s recipe book.
Someone claimed the newcomers were incompetent, well that’s a little harsh considering they are new. But Brooks isn’t right, does that label go to her too? Actually someone in her profession would be considered the expert at the table on this issue. She would also get questioned the most out of all the council members if investigated, because of her “public experience” with accounting and finances. Remember that. Just saying also. A Certified+Public+Accountant sitting at the council table during meetings (also cashing her council checks) and never once raised questions about finances, funds, payroll until now? Wow. This is still a little fishy. Stay tuned to northescambia.com tv for the latest. Great entertaining weekend. Lol.
I don’t believe that anyone is questioning the legality of the loans. If this was an economic development fund for Century than anyone who has a business or wants a business should have been able to apply for a loan. That’s including the council. It upsets me that it was hushed and only council and perhaps their friends benefitted from it.
If century council and mayors, present and past , were serious about growing century then this should have been made public! A business plan contest, a rent reduction assistance , building purchase assistance, there are unlimited projects they could have helped this town with but they chose to keep it under the table and help themselves. It’s sad!
Fyi, I’m not hankering for a loan, just upset the town watched as businesses open and close without offering any assistance when there was money set aside for it. Perhaps some of the businesses weren’t viable but I’m sure others would be open today if our leaders were more supportive and resourceful.
@ Clueless Bob or any one else
Actually no just a citizen, how hard is it to read the charter, it is on the municicode, on google, links posted here also–how hard is to to google a Florida Statute?
Or follow the county meetings, learn about RESTORE and Triumph dollars available, the county has been holding economic development fund to be used but want to see measurable result but it has stood in the budget. Why doesn’t each member of council keep up with that? They could have a seat on the PEDC but no one shows up.
Has any one got to the bottom of the Alger Property? Do you know how to run the CRA? Why is the consumer confidence report not updated on the drinking water?
Why haven’t road sign been brought up to federal highway standards? Why is there a big pot hole in Highways 29..
NO I have been watching this the last few years and members of the council are not on the ball nor is the mayor or apparently the staff. Have been waiting to see if they could turn this around but the electorate voted on Identity politics, that is a nice way of saying something.
If Mrs Barnes and/ or some of the people running think they can turn this around then more power to them.
I would rather be unincorporated then see the State float a loan and to continue to be mismanaged.
True to “qualify” you pay you small fee and the voters vote you in..but ask yourself..those running ..Do you know what the heck you are doing?
To say “I’m going to help the mayor?”…The council is set up as a check and balance..Information is supposed to be in the SUNSHINE and shared freely..
Staying tuned but not forcing the issue.
The citizens can petition, to dissolve the municipality, have ECUA (or others) come in and some other provider to run the drinking water.
Ball’s in your court. Nothing personal, can you do the job or Not?
Even some challenging the seats –Are you aligning yourself with a person or are you qualified and able to sort through the charter, the statutes and the RESPONSIBILITY of an ELECTED OFFICIAL, charged with the oath of office to maintain your fiduciary responsibility to the PEOPLE you are stepping up to govern?
This is not a Company Boss situation, in fact the Clerk is the highest paid, person and often a mayor is a figure head in some municipalities..The charter grants him too much power..To hire and fire.
Obviously since the last election it is not working out too well..
If there is anyone that cares to look for the records……..you will find out that the loans were LEGAL. there was either 4 or 5 loans.Mrs Brooks paid hers back…LEGAL. Mrs mcmurray Jackson must not have paid hers back as agreed , if she has to have it REFINANCED??? If she had given her pay check that she receives for sitting at the council table a couple of times a month…..she would probably have paid hers off!!!
The council is the governing body for CENTURY . They should be well INFORMED at all times. NO EXCUSES for them not knowing that there is NOT enough money to cover payroll….sad times for Century.We need to be moving forward not back.!!
Clueless Bob, I love your comments but just want you and the rest of the world to know that my loan nor my building was free. In 1989 I appeared before the Town Council in a public meeting asking about an economic developement loan. The Town Council approved this loan with a unamous vote. There should be minutes on this meeting. I have every receipt where I pd my loan. I also have a journal that i kept with all payments made. date pd. amount pd. with all check nos. I also have a lein satisfaction that is recorded in the Escambia County Court House. As far as the council not knowing about these loans that is not true, there are at least three members that did know, Ms.Brooks, Ms. Sandra Jackson, and MrBrook, Gary Riley. What I dont understand is why my loan was singled out and records requested but not on Ms Brooks nor Ms Jackson. I learned along time ago if you deal with the Town of Century you better keep records. I also want you to know when I received this loan I was not in politics . I made that mistake several years later.
If I were employed by the town of century, I would be checking to see if my health insurance, retirement and any other benefits that came with my job have been paid. I think I would also start looking for a new job. If the payrolls start bouncing, nothing is getting paid.
How can anyone on the council say they didn’t know?! Robert Hudson’s annual audit has shown that there have been issues for years! Now suddenly the back door loans were made public and questions are being asked nobody knows nothing. Right
Whoa. I am just an innocent observer here, but let me say, this site is absolutely the best. Whoever owns it should start a northescambia TV show also, like a Dr. Phil kind of format. It would be a highly rated show – believe me (in my Pres. Trump voice) That was free. Lol. Ok let me start here, this is getting even better, I came back for seconds but now it is a buffet.
@And do you know
Hey, I don’t know the charter rules, and I wouldn’t even attempt to interpret them, most in the public couldn’t either. But guess who could? Someone that has been in the council for years, maybe even a CPA, maybe even the one that raised this issue, got a town loan, a free building from previous mayors, cooks the accounting books, cries wolf, who is actually the kettle and teapot, also lost a a previous Mayoral election, and responds to a post at 1 AM in the morning -Wtheck. BUT, by way of default someone who feels they just may have a final chance to be next in line to take the top seat.
I was wrong, this better than Scooby Doo. Also proves my point earlier – which hunt, undermining campaign, all.
OR – the plot may thicken – there were some recently at a council meeting making claims and frequent use of the word “incompetent” (I read that here too). Maybe they are still steaming and will not rest until there is a scandal. This is great entertainment for my weekend for sure. Make me want to hitch the boat and go fishing at Lake Stone later today.
Sounds like the Clinton’s are running the town of Century.
Time to just become a community no tax base to support a town.
Make the mayor PERSONALLY responsible for the spending and it will stop.
It was announced last year that the Century gas the department was losing money
All the county negotiations to award the franchise to Century was NOT to keep it going for Century.
It was to allow Century to Sell it to Pensacola Energy and have that one ace in their hand is the reason that the county had awarded Century the Franchise. Matt Danhaisser was supposed to work that out with PE, I thought.
Did the Mayor stop it? Bad Move.
Sell the Gas Department to Pensacola Energy, for starters. Would they take it? Did you offer for them to take the ball and chain?..sure employees will be laid off..Welcome to the real world.
Does anybody follow up?
Why were the Mayor and three members of the council absent this night? Are they going to play victim or they going to head off problems and think for themselves.
I sense a power struggle rather than doing business in the Sunshine–keep the ENTIRE council informed. This is not a “community”–thing, it is an entire town type thing. Not an us against them– Black or white struggle.
News flash — Government is not GIVE A MINT nor a claim to fame. Do what you stepped up to do. Your Job. You are not their for your own benefit. You are a public servant entrusted with taxpayer money elected a position of trust, if unable or unwilling to do your duty time to turn it over to some one who can govern, even if it’s D5. Escambia County
@M in Bratt. The citizens could petition the council to put it on a ballot. I do not see that happening. I thought perhaps another late uncorrected audit would have signaled the state in time. Looks like its happening sooner than later. Wheels turn slow. It is up to the council for now. I would call my Florida State representative for support and information if I were a council member. I would also contact the county commission for information and support.
@ Clueless
The next in line refers to the charter. There are rules and laws in place that designate exactly how things should he run. Next in line means if the Mayor has failed in his fiscal fiduciary role, by law by charter, the council president has the authority to assume that role. The past audit showed that funds from LOGT were used to fund something else. By law, that is misappropriation of funds and will never be able to pay that back. The Major is uninformed and well as other who have been running the town. If you look on his Facebook the public page has things like taking care of people, taking care of business, and pray. The problem is the incompetence has reached the end of the rope. The drama will ensue and there will be claims or racism and who knows what. The blame game is probably happening now but the facts iff the matters will come out once they call in the authorities. The state. It will not be solved on August 2. You can read the WGHG article and glean the denial there. It is not personal. The municipality has apparently come to the end. Is what it looks like to me..not the account and not involved with the government.. Just paying attention.
This is getting good, I actually came back for seconds. It’s like an episode of Scooby Doo where someone was scaring the group, and at the end of the show, you find out it was someone who was actually with you the entire time. It’s still a little hilarious now, hopefully it doesn’t become sad.
Speaking of, That post from @And you do know, seems a little suspicious. Could it actually be the ACCOUNTANT? To state the “The Town Council president is next line…. Wow…. just dive right into it will ya…..
Really; you can’t just burn down the entire council for a mistake and oversight they didnt even know about for some time. Luckily Ann Brooks caught it, even though it was more of a big for reveal, made for tv public forum. Maybe, just maybe, that will make her next in line. Lol. It will be interesting to hear the update on the next meeting. I will check back for the latest update for sure. Century is competing with D.C. I guess with the loans, witch hunts, conspiracies, diversions, and calls for impeachment.
who paid the overdraft fee ????????
Town council…this is enough, by charter, for you to recall the Mayor..right?,by your vote..? Then you appoint another..The Council president, I believe is next in line.
You swore an oath..hopefully, read the charter..
165.051 Dissolution procedures.—
(1) The charter of any existing municipality may be revoked and the municipal corporation dissolved by either:
(a) A special act of the Legislature; or
(b) An ordinance of the governing body of the municipality, approved by a vote of the qualified voters.
(2) If a vote of the qualified voters is required, the governing body of the municipality or, if the municipal governing body does not act within 30 days, the governing body of the county or counties in which the municipality is located, shall set the date of the election, which shall be the next regularly scheduled election or a special election held prior to such election, if approved by a majority of the members of the governing body of each governmental unit affected, but no sooner than 30 days after passage of the ordinance. Notice of the election shall be published at least once each week for 2 consecutive weeks prior to the election in a newspaper of general circulation in the municipality.
@David…We Alabamians appreciate the offer but will have to pass at this time.
Wait, wait. Did anybody ever think about who the town’s accountant is?? Ye who speaketh loudest may as welleth bee… never mind. I thought ACCOUNTANTS handled money, finances, numbers…?? Maybe not.
If anyone had info to know what was going on with the town’s money FIRST. It would be the accountant right? Be for real and look at what’s going on here. We just read that Ann Brooks had one of those personal loans from the town also (northescambia did a great job giving us that information) 2. the former Mayor paid for the building for her personal business, 3. it’s also election time…. This is an attempt to undermine the current group my opinion. Now I could actually care less, but this one is so obvious. Post this one please, because you cannot tell me Centuey folks are this blind to see who the goose, gander, or the kettle, the tea pot is – however it goes. lol. Something smells fishy like Salters Lake.
Sounds like the other 3 council members new what was coming.
May have to trim staff a little.
Nearer the top preferably.
It’s hard to believe that they can loan money out but don’t have money to pay for the town’s bills that is pitiful
Clay Ingram 850-494-7330
Doug Broxson 850-595-1036
Steven Barry 850-595-4950
I don’t usually comment on these stories, but WOW. I live here. I know we’re a small town, and not rich by any stretch of the imagination, but c’mon!!
If I wrote 41 bad checks, I’d be hauled off downtown. The same should happen to whichever council members were responsible for this, because they definitely knew that money wasn’t there.
Also, I agree with previous posters–no way the President should have to submit records requests to find out this type of thing.
SMH
Century Council Member Receives $12,000 Loan Refinance From Town
https://library.municode.com/fl/century/codes/code_of_ordinances
I was going to get a personal loan from the town, Lol. now I dont know what to do.
IRS / Department of the US Treasury does not Play.
Sounds like soon we may see Century Town Officials wearing handcuffs and being put into the back of black SUV’s for a trip to a Federal Prison.
Where does the money go?
May not be a need to “follow the money” just let the Feds take care of that and hold them what are accountable to the rule of law then report the Truth to the People.
Can we all together say out load ..PRICHARD..we should draw new state lines and give Century to Ala so they can have a Prichard anex..
Century, Century, Century. Always something. From the top down. Someone needs to get a reliable lab to check the water supply up there.
Time to add another Splash Pad.
I own a local business and was curious if I could get a small loan or is it a bad time to ask? By reading it appears I could still get the loan?
And y’all thought McCall was bad. Government needs to clean house and start fresh, and not with anybody that’s actually from Century. No offense, but that just leads to “hiring your friends” and still not dealing with the real issues at hand.
Century is circling the drain
@CITIZEN. You did your homework. Now the question would be; is there anything in the City Charter to force this council to put the question on a ballot, petition drive or otherwise?
i wonder if the mayor got his transportation cost check ?
Century should sell tickets for the goat rodeo for extra income.
Interesting the IRS didn’t complain about their payroll deposits not arriving. What is up with them?
maybe ya could take some of Sandra’s loan payments to cover them hot checks.
hehe, ya better watch out, the irs might take the town. i dunno if they’d want it though. haha,
“she found only through public records requests”. Does anybody see anything wrong with the Council President having to submit public information requests to get information that she should already have at hand? I wonder if they are writing rubber checks for the loans they are giving each other?
I have not received a bill from the town of Century for my parents utilities since at least March. Services disconnected, service charges, reconnection fee because they never mailed me the bill. It makes sense now that they couldn’t afford the stamps and never mailed the bills. Heartbreaking, infuriating!
Time for the state to step in and audit or whatever they do and get it atraightened out. You would think as much budget issues as they are having that council members would show up. I guess it’s just not that important to them. No wonder it’s such a mess up there.
I may be wrong but don’t people go to jail for stuff like this? There is something rotten at city hall. The towns business is not being run right. People go to jail for stuff like this.
@Resident – that was exactly what I thought when I read this! We just read a story about a council member getting a loan.
So is this why people are hand picked
Yep it’s the jv Clinton foundation
http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0100-0199/0165/0165.html
How long will this go on before somebody does something? They have money to loan to council members, but can’t make payroll? They have fireworks shows and buy trucks, but can’t make payroll?
Isn’t it illegal to write checks when you know there’s no money to cover them?
Unbweavable.