Audit faults Monroe’s bookkeeping and permitting practices

MONROE — The city is considering hiring a second accountant after the state Auditor’s Office pointed out several problems with bookkeeping and permitting, Monroe Finance Director Dianne Nelson said.

The auditors sent a Dec. 17 letter that summarized issues found during the city’s financial and accountability audits from Jan. 1, 2012, to Dec. 31, 2013.

The problems did not result in so-called written findings, the state’s most serious level of concern. Instead, the auditors issued a “management letter,” which creates a public record of the issues.

The state found that the city had not properly trained workers in the finance department to ensure they can prepare financial statements, schedules and notes according to state standards. The audit identified errors due to the inadequate training.

Nelson said Monroe has trouble satisfying state requirements because she is the only certified public accountant on the city payroll. Before the recession, Monroe had three accountants. Now Nelson oversees five employees in the finance department, but because they are not accountants, they are not qualified to check some of her advanced work.

Hiring another accountant would go a long way to fixing the problems the state found, Nelson said. But the city cannot immediately afford to do so.

Nelson estimates that a second accountant would cost the city at least $90,000 a year in pay and benefits.

The city hopes to hire someone, either full or part time, once it can determine what regular sales tax revenue it can expect with the addition of the new Walmart store. It opened in December on North Kelsey Street. That information should be available in February, when Nelson needs extra help as she prepares annual financial statements due to the state by May.

Mayor Geoffrey Thomas said the city is exploring alternatives to hiring another accountant in case it doesn’t have enough money to cover the extra expense.

“Our long-term need is to have somebody full time,” he said.

If Monroe can’t afford another accountant, it might consider a reciprocal agreement with another city to check bookkeeping. Another idea is to provide more training to existing employees.

“There is a need for another accountant,” Nelson said. “It’s just a matter of finances and what we do in the meantime. We try to do as best we can with limited resources.”

The problems that resulted from the shortage of accounting talent involved, among other things, the city’s new permitting process. Monroe failed to update fees in the accounting system to reflect the most current ones, the state said. That resulted in over- and undercharging.

Nelson said people who were overcharged were given a refund. Monroe elected to pay for the permits that were undercharged because it was the city’s error, she said.

The permitting-fee mistakes cost the city $791. To avoid future errors, the city in 2015 plans to reconcile permits issued with fees collected at the end of each month.

Amy Nile: 425-339-3192; anile@heraldnet.com. Twitter: @AmyNileReports.

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