Council receives annual audit
MIDWAY - Much of the city council's 41-minute meeting Monday night was devoted to hearing the results of the annual audit of city government. The audit was presented by Jason Strange, a certified public accountant (CPA) with Smith and Company of Bardstown. Strange noted that the city had met its pension obligations for the state retirement system, which rose from $301,000 to $408,868. Council member Libby Warfield asked why that amount was more than 25 percent higher. Strange responded that the figure was based on estimates by actuaries involving markets, participation and life expectancy. The report did not express an opinion on the effectiveness of the city government's "internal control" but said, "The City does not have a system of internal control that would allow it to prevent, detect and correct a significant misstatement in its financial statements ." The audit recommended internal controls be put in place, but noted, "As is common in small organizations, the City has financial restraints that prevent the hiring of accounting personnel ." Despite that, the audit suggested the city employ a "highly trained accounting person" such as a CPA. The audit found a "significant deficiency" in the segregation of duties over receipts, disbursements and reconciliations. It noted that the clerk/treasurer accepts cash receipts, records the amounts in the accounting system, has check signing authority and performs bank reconciliations without review. The recommended solution noted, "Although the size of the city's accounting and administrative staff prohibits complete adherence to this concept, we believe that . practices could be implemented to improve existing internal control without impairing efficiency." Other suggestions included having mail be opened by an employee not responsible for accounting, depositing cash receipts daily and mailing signed checks without allowing them to be returned to the employee responsible for accounts payable. Mayor Grayson Vandegrift called it a "good, healthy audit," but added that he didn't think it was a CPA's job to comment on it. Business residences The council voted unanimously in favor of an amendment to zoning laws that will allow upstairs residences in businesses located in P-1 zones (professional office space.) The Versailles City Council and Woodford Fiscal Court already passed the measure. Roller, Craig honored Vandegrift wrapped up the meeting by reading proclamations honoring outgoing council members Dan Roller, who stepped down after serving three two-year terms, and Steven Craig, a one-termer defeated in his bid for reelection. Vandegrift praised Craig for helping build a sidewalk at the Midway Cemetery Veterans' Memorial and his work on the city's new sidewalk improvement program. He complimented Roller for helping to update the city's property maintenance code, his work on the Blighted Property Committee, and helping pass the Fairness Ordinance. The last two days of the year will be dedicated to Craig and Roller: Dec. 30 will be Steven Craig Day and Dec. 31, Dan Roller Day. The council voted unanimously to cancel the final meeting of the year, as is customary. Then Roller uttered what will likely be the last words in a Midway City Council meeting this year: "Motion." It passed unanimously.