Auditor gives city’s finances clean bill of health, offers recommendations

Linda Gray discusses the city’s 2014-15 audit during Tuesday’s Bardstown City Council meeting.

By JIM BROOKS
Nelson County Gazette / WBRT Radio

Tuesday, Dec. 29, 2015, 11:58 p.m. — The Bardstown City Council received good news Tuesday night from its auditor regarding the examination of the city’s 2014-15 budget.

Linda Gray, of the Louisville-based Peercy & Gray, reviewed the audit with the council and told them her audit gave the city’s fiscal year 2014-15 finances her highest opinion, and stated the city’s financial statements are accurate and follow accepted accounting practices.

Gray did outline several recommendations as the result of the audit outlining four areas of concern.

Auditor Linda Gray makes a point during her discussion of the city’s fiscal year 2014-15 audit.

E-911. Gray suggested that the city strengthen its financial controls regarding the E-911 budget in order to avoid ending the fiscal year with a deficit.

When the deficit became apparent as the fiscal year ended, Gray said the city and county should have gotten together and provided the necessary funding to cover the shortfall, and the budget amended prior to the end of the fiscal year.

“It’s not the end of the world,” she said of the deficit, “but its not what you want.”

The deficit was due to a drop in revenues and higher expenditures, she said. She said the city should review the E-911 budget versus actual expenditures. She also recommended more communication with Nelson Fiscal Court on managing the E-911 budget.

CITY CREDIT CARDS. Another area that needed stronger internal controls are the city’s credit cards. She said there were a significant number of missing receipts, and receipts for meals that lacked a business purpose included on the receipt.

The city also paid $281 in sales tax it didn’t need to pay on credit card purchases because government entities are exempt from sales taxes. A sign-out sheet for one city credit card was a good idea that didn’t work, she said.

“There were way more charges than were ever traced back to the sign-out sheet,” Gray said.

CSR CASH DRAWERS. Gray’s report also noted that the city’s customer service representatives have cash drawers with locks, but most CSRs did not have keys to lock them. The city has addressed the issue of cash drawer locks and keys, she added.

FINANCIAL STATEMENTS. Gray said she also recommended the city improve how it handles bank statement reconciliations to insure than at least two people review the statements.

HRB RECOMMENDATIONS. The council approved four Historic Review Board recommendations on four Certificates of Appropriateness.

COA-15-59. The HRB approved a request from Lewis and Paulette Korody to keep the roof paint color and replace the asphalt shingles of the home at 512 North Third St. with cedar shakes.

COA-15-65. The HRB approved a request from Anthony Torres to paint the front door black; make changes to the landscaping; install, a sidewalk addition and a concrete border at 305 South Fifth St.

COA-15-66. Approved a request from Lanny and Cecelia Baker to replace the metal roof with the same dark green shingles that are currently on the addition to the house at 216 East Flaget Ave.

COA-15-67. Approved a request from Tom Durbin, applicant and owner Rosemary Hurst to remove the chimney on the west side of the house at 104 East Broadway and replace it with fake brick.

In other business, the council:

— approved an $8,496.13 change order for construction of a new wash bay. The change is necessary to accommodate the city’s newest garbage truck, which is taller. The wash bay will be used to wash city vehicles, and a place to park the new garbage truck. The change boosts the total cost of the wash bay to $56,076.

— approved re-appointing Christina Bradford to the Joint City-Count Ethics Commission;

— approved appointing Beth Barkley to fill the unexpired term of Thomas Curtis on the Historical Review Board. His term expires Jan. 10, 2017. Curtis was appointed Nov. 24, but sold his house and is moving out of state.

NEXT UP. The council will meet next at 7 p.m. on Tuesday, Jan. 12, 2016.

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