Nevada County Picayune and Gurdon Times Newspaper Archive

City Council Hears Audit Report

It was audit time for the Prescott City Council, Monday, Aug. 16.

Pat Malone, with the Taylor, Rodgers, Turner and Malone CPA agency of Arkadelphia, told the council how the city stands according to the audit.

The report came back with an unqualified opinion, which means, Malone said, the information was presented fairly.

However, there were some problems found in the Municipal Clerk's office, keeping this part of the budget out of compliance. Most of the problems, Malone said, are repeats of the past.

But, she said, the list for the department was longer last year, so this shows work is being done to correct the discrepancies.

One of the problems is a byproduct of the software being used in the office, and is being corrected.

The program settles the money as collected, but not in a way as to comply with state law.

Malone said other clerks use the same program and have the same problem. Nothing illegal is being done, but the programming doesn't do what the state requires.

As she said, the city has the money, but it must be accounted for and used in the manner it's designated.

In the municipal court, the funds have no net worth as these monies are owed to someone.

Looking at other parts of the audit, Malone said the city's net worth has increased by about $700,000 from 1997 to 1998 as the city isn't spending as much as was expected when the budget was planned for '98.

Malone said the city complied in all material matters with the laws and regulations and showed no material weaknesses.

The city, she continued, must also show it's working to become Y2K compliant and where it is in the process. This task, though, has been completed and Prescott's systems are ready for the millennium to arrive.

Malone said the Y2K problem could affect computer chips in vehicles, and most of these haven't been checked out as yet. The city's fleet wasn't examined in the audit and the cars may quit running as of 12:01 a.m., Jan. 1, 2000.

"It would be a good idea to have a committee develop a backup plan to deal with the Y2K problem," she said. "You can do some things by hand, but with emergency vehicles, it could be a serious problem."

Prescott Mayor Howard Taylor said the city's department heads have been working on the problem.

"This could be much ado about nothing," Malone said, "and I hope it's the case, but if not, it would be a good idea to have a backup plan."

Concerning the audit, Malone said the laws are written in absolutes for ideal situations. This doesn't happen in the real world.

The laws, she added, don't take into account day-to-day operations. People can be doing their jobs right, yet be out of compliance with the law.

She suggested the city tighten up so fewer things slip through the cracks for the audit. Malone added as long as the municipal clerk uses this computer program, this problem will remain.

The municipal court is a stepchild, Malone told the council, as it doesn't belong to either the city or county and reports to neither. "It's an unusual entity and evolved from state law or somewhere."

Once Malone finished, the council approved the audit.

Michelle Glass, municipal clerk, was on hand and answered questions about her department as best she could.

There are times, she said, when some receipts may not be written on time, but this doesn't happen often. If it occurs once, she said, they are out of compliance.

Balances in all accounts are being taken care of, Glass said, but auditors have a certain way they want statements reconciled. "We're doing it the way we would a personal account."

In addition, there is some old money Glass doesn't know where it came from. It would take a court order to distribute these funds.

While the time payment ledgers aren't in compliance yet, they are closer than they've ever been, she said. Sometimes the clerk's office has to go back a year or more to find out where the differences are.

Another problem the department has, Glass said, is there is no starting point at the beginning of the year. Because of this, the bank statements can't be balanced the way auditors want, because she can't figure out what the department is supposed to have.

Municipal Judge Gene Hale has been getting monthly printouts of the court's activities since the computers were installed. But, Glass said, with no clear starting and finishing point, the clerk's office will be out of compliance again next year.

Another area the department was said to be out of compliance in was in making deposits. Glass said there are times when so little comes in it's not worth making a deposit, though all monies are accounted for.

However, the main reason Glass was at the meeting was to discuss another problem. The court's computers aren't Y2K complaint.

She requested, and received, $825.60 to get this straightened out. This will include the computers being upgraded with Windows '98 installed.

From there, the council passed a resolution to get work underway on the industrial park entrance.

The resolution had to be approved so the grant money could be obtained. Bobo and Bain of Hope had submitted the lowest bid on the project at $194,710, to include building the entrance and other enhancements.

Walt Denton, executive director of the Prescott-Nevada County Economic Development Office, said this grant project has been a year in the works and they are a little ahead of schedule with the entrance project.

It took 43 steps, he said, to obtain this grant, but the EDO is getting ready to break ground at the industrial park.

Denton said public meetings will soon be held for the Prescott Rural Water Project, and told the council no date has been set for ceremonies on the Arkansas Community of Excellence award for Prescott.

The details, he said, are being worked out with the governor's office, and when the ceremonies are held will depend on Gov. Mike Huckabee.

Changing topics, Denton said a check for $800,000 has been received for the proposed new library, but a construction committee will have to be created to decide how the money will be spent.

Taylor said the city will get new ACE signs when Prescott is officially certified as an ACE community, and a construction board will be selected soon.

Karen Ward, a member of the council, said the city needs to get involved with the school millage plan and help get it passed.