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Audit finds irregularities in county expenditures |
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Written by Staff
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Saturday, 20 March 2004 |
The annual audit of Floyd County's governmental operations found significant accounting irregularities and multiple "reportable" problems in the administrative departments charged with overseeing other county agencies and monitoring their accounting performances, supervisors learned last week.
"I hate to end our long relationship on such a note but there is bad news," Deanna Cox of the auditing firm of Farmer, Cox & Associates told the board at their March monthly meeting. Supervisors voted last year to change auditors after many years of using Cox's firm.
Cox said the audit, which was not complete but was scheduled to be delivered to the board shortly, will cite the board of supervisors, county administration, county attorney, electoral board and general district court for multiple "reportable" errors, including budget expenditures without authorization and exceeded approved budgets.
The board, county administration and county attorney monitor the expenditures of other county departments.
Cox said final details would be included in the management letter that was not ready when the board met last week but said accounting problems at one point led the county to believe it had $1 million more than it actually had. In addition, she said past investment accounts were not properly represented on the books and cited problems with a "disappearing fund balance." Other accounts, she said, were allowed to fall below required minimums.
In addition, auditors found "significant purchases left off the list" of acquisitions given to them during the audit.
Some supervisors just shook their heads while Cox delivered her report.
"Given everything else we've heard today this just fits rights in," board chairman David Ingram said.
Cox's report came towards the end of a supervisor's meeting where the Virginia Department of Transportation delivered news of more cuts in funding for road repair, the county social service's director said legislation could impact funding from the state and the county electoral board told the board that new laws could require them to purchase new voting machines at a cost of $70,000 per precinct.
"And the hits just keep on coming," Courthouse Supervisor Jerry Booth said.
The National Society of Accountants guidelines on public accounting say "reportable" issues in an audit are irregularities serious enough to warrant highlighting in the audit management letter and severe enough to require immediate corrective action.
When asked if the audit was bad news, county administrator Dan Campbell said "yes, it's bad" as he and the board headed into an executive session on another matter.
Supervisors refused further comment until they have had a chance to see the actual audit and management letter but one supervisor says privately the county is facing a serious budget situation because of skyrocketing increases in budget requests from county agencies. The supervisor cited the school board, rescue squad and fire departments as examples of spiraling budgets.
Floyd County residents faced increased taxes in 2005 after real estate reassessments but supervisors held the line on tax rates for 2006. The county is in the middle of budget sessions right now for the coming fiscal year and some say privately that a tax increase may be necessary - something the board is reluctant to do in an election year when some supervisors face opposition. |
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Last Updated ( Saturday, 12 May 2007 )
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