Completing an audit for the city of Loyall for the year ending June 2011, Certified Public Accountant Richard Scruggs reported the city “is in good shape” during a recent meeting of the Loyall City Council.
“If you look at the city’s current liabilities and current assets to see if you have enough current assets to take care of your current liabilities, the city is in good shape and can do that,” said Scruggs.
He continued by saying in the city’s statement of activities, or income statement, which details the changes in the city’s assets during the year, the city of Loyall’s revenue exceeded their expenses and “that’s the way you want it to be.”
Two findings were listed in the report, which included segregation of duties and deficiency in compliance with ordinance.
Scruggs said the segregation of duties finding was due to the size of the city, “personnel is not available to allow related accounting duties to be carried out by different individuals.”
He said the city continues to address this issue and continues to implement new internal controls.
In regard to deficiency in compliance with Ordinance 94-005, which reads in part, “After the effective date of this ordinance, a spouse, child, parent or sibling of a city officer or employee shall not be employed or appointed to a position in the city government.”
Scruggs said during the period of this audit this situation existed with the city treasurer and was corrected by Ordinance 11-000, which reads in part as, “After the effective date of the ordinance only one spouse, child, parent or sibling of a city officer or employee may be employed or appointed to a position in the city government, a city government agency or special district in the city in which the officer or employee serves.”
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