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<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Robert Frank, City Editor frank@heraldnet.com   Published: Saturday, August 23, 2008 Leaks in Gold Bar's finances exposed in audit By Yoshiaki Nohara, Herald Writer GOLD BAR -- A state audit released this week found several problems with the city's financial operation, including a lack of receipts for credit-card transactions, problems keeping track of employees' salaries and the observation that the cash register was left unlocked when employees left the building for lunch. The audit looked at the city's operation between January 2005 and December 2006 and made the point that city funds were at risk of being misused if the problems weren't fixed. The city couldn't present documentation to support 28 of 44 credit card transactions worth $7,852, according to the report. The city didn't approve 76 out of 422 payroll vouchers or 187 out of 1,010 accounts payable vouchers. For instance, payroll check numbers were used twice, leaving no record of the amount of the second check, according to the report. The total of the unapproved accounts payable was $210,492 for the city, which had budgets of $1.437 million in 2005 and $1.225 million in 2006. The cash register being left unlocked during lunch wasn't the only problem. The keys to the room and to the cabinet where the money was held at night were kept in an easily accessible area. Mayor Crystal Hill said the city already has addressed most of the concerns by making operational changes and adding new employees. "We are well on our way to address these concerns if they haven't already been addressed yet," said Hill, who was sworn in as mayor in January 2006. The audit found no wrongdoing; it aims to help Gold Bar improve its financial monitoring system, said Mindy Chambers, a spokeswoman for Washington State Auditor's Office. The city came up with detailed solutions, such as obtaining new accounting and payroll software to improve its record-keeping, Chambers said. The city now requires a written approval for each credit card transaction. It also has improved internal control over vouchers, requiring signatures from City Council members. The keys to the cash register and lock box are now maintained in a secure location. "We are very happy with the city's response," Chambers said. As a precaution, Hill said the city is investigating its past performance to make sure that no wrongdoing happened. The city always has monitored its expenses and revenues, but at times it was too short-staffed to ensure the "double or triple checks that (state auditors) want to see," Hill said. "We've been growing," Hill said. "We are trying to manage more people and more services with the same amount of funding." Slightly more than 2,000 people live in the city of Gold Bar in the Skykomish Valley along U.S. 2. The city had deposited utility payments every five days or so, the audit said. That's because city employees can't make daily deposits to the nearest bank, which is located seven miles from the city. The city will try to make deposits at least three times a week, city officials said. Auditors are aware that small towns such as Gold Bar are operating under tight budgets and are struggling to meet state standards for financial monitoring, Chambers said. "Gold Bar is not unique in this," she said. The auditor's office plans to assess the city's progress in next audit, which is set to be released in 2010. Reporter Yoshiaki Nohara: 425-339-3029 or ynohara@heraldnet.com.

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