Audit Prompts Finger-Pointing State Identified Several Problem Areas in City Accounting Methods

Article excerpt

A state audit critical of procedures used by Velda Village Hills officials over the past two years prompted an hour of finger-pointing last week among about 50 people crowded into the Village Hall.

The audit by state Auditor Margaret Kelly found that the village lacked:

A formal bid policy and had questionable and unsupported expenses.

Cash management controls, which led to a lack of information needed to properly manage income.

Budget documents that would lead to better management and would comply with state reporting laws.

Complete board meeting minutes and ordinance records.

Complete accounting for the use of motor vehicle-related revenue, which is restricted to street uses.

Proper expense accounts.

Adequate accounting of fixed assets.

Internal controls over payments for goods and services, even those eventually approved by a board vote.

The audit, prompted by a petition drive by residents, included written responses from village trustees stating that the recommended corrective measures will be taken.

The audit noted that a state audit in 1987 and a private accountant's report in 1991 cited many of the same concerns.

Trustees attending the special session did not sit as a body but commented at will. …