03/09/2021
An audit of the City of Forsyth released today
by State Auditor Nicole Galloway gives a rating of "poor" after
finding numerous concerns, including more than $1,400 missing from the city's
vault and another $2,000 in utility deposits that were received but never
deposited. In addition to the missing money, the audit also found that
thousands in utility deposits were not deposited until long after utility
service had been activated.
"My
office stands ready to assist when financial concerns are identified. That's
exactly what we did when the Taney County Sheriff asked for our help to review
accounting discrepancies that came to light after a theft from the city's
vault," Auditor Galloway said. "The resulting audit details how
thousands in city funds went missing and also highlights serious concerns with
the city's financial controls. I urge officials to implement our
recommendations as soon as possible to better protect taxpayer dollars."
On
October 15, 2019, city officials reported a burglary from the city's vault to
the Taney County Sheriff's office. In December, the Taney County Sheriff's
office contacted the State Auditor's Office and requested assistance in
reviewing discrepancies and accounting regularities related to utility deposits
and billings. After an initial review determined the need for further
investigation, the city's board of aldermen requested an audit.
The
audit found that between May 2019 and November 2019, Carla Combs, the former
utility clerk, did not deposit $2,000 of recorded utility deposits, all paid in
cash. In an interview with auditors, Combs could not explain why the money was
not deposited. In addition to the missing money, the audit also found that $6,400
in utility deposits were not deposited until between 20 and more than 121 days
after activation of utility services. The timing of these deposits appears
questionable.
The
audit also detailed the events surrounding the theft from the city's vault. A
master key that was missing from the city clerk's desk was used to open the
city vault, and $1,403 was stolen. The missing cash consisted of $1,341 of
municipal court receipts and a $62 utility payment.
The
Board of Aldermen is working with law enforcement on criminal prosecution
regarding the missing deposits, stolen money, untimely and questionable utility deposits.
The
audit found lack of proper oversight over the city's financial functions led to
the missing money and the questionable utility deposits. The report recommended
ensuring independent reviews of accounting processes, better receipting
processes and improved controls over keys.
A
copy of the complete audit report released today is available here.