Council given draft audit
In a short first meeting of 2018, the Midway City Council heard a report on the city’s finances for the fiscal year 2017, which ended June 30.
The summary of the draft audit was presented by Jason Strange of the Elizabethtown accounting firm, Stiler, Carter and Associates. Strange called it a “clean audit” report before outlining some of the highlights of the draft.
The city’s total net position, which includes governmental activities and “business-type” activities, was $6,427,452.
The general fund balance was $946,002, with money from the municipal aid fund and cemetery fund raising that total to $1,017,455.
The city’s operating loss for its sewer and water funds was $151,139.
The city’s three outstanding loans for its water and sewer facilities ended the year with a total balance of $526,927.
The city has a total net pension liability to the County Employee Retirement System (CERS) of $394,547. In fiscal ‘17, it paid $28,422 to the system on a payroll of $203,742.
The draft echoed two concerns of last year’s audit, both of which it said could be attributed, at least in part, to the small staff at City Hall.
A “material weakness” was the city’s lack of “internal control over financial reporting that would allow it to prevent, detect and correct a significant misstatement in its financial statements.”
A “significant deficiency” was the lack of “adequate segregation of duties over receipts, disbursements and reconciliations at City Hall. The clerk/treasurer accepts cash receipts and also records the amounts into the accounting system” and “enters data into the accounting system, has check signing authority, and performs bank reconciliations without review.” Vandegrift later said he’d tried to make corrections, “but they weren’t good enough.”
The draft also noted that the city’s policy of requiring purchase orders for non-routine transactions over $500 was not being followed, with examples of fire equipment bought with no purchase order.
Asked by Council Member Kaye Nita Gallagher about what happened, Vandegrift said while the purchases were budgeted, purchase orders should have been filled out beforehand. He said he’d “scolded” the offending parties.
Occupational taxes up
Vandegrift said he was very excited that the city’s occupational taxes, beefed up by increased activity at Midway Station, was $100,000 more than expected.
Iron Horse Half Marathon
The council voted 5 to 0 to approve an event permit for the 9th annual Iron Horse Half Marathon, which is presented by John’s Run/Walk Shop in Lexington. This year’s race will take place Oct. 14. Vandegrift said organizers usually contribute about $2,500 to the city.
Nearly 600 runners took part in last year’s half-marathon, which is 13.1 miles.