The Town of Jonesboro’s latest audit for the fiscal year ended 6/30/15 reveals that some of the financial and bookkeeping issues that plagued the town several years ago are still not completely resolved.
2015-1 Improper Treatment of Town Vehicles
This finding was first reported in 2012. Town employees who drive Town vehicles are not maintaining activity logs
as required by the Town’s Ordinance. Logs were available for only two of the Town’s approximately twenty vehicles
that are not public safety vehicles.
Town Ordinance Number 574 prohibits personal usage of Town vehicles and requires employees to log mileage for
each vehicle into a daily log book. If the vehicle is used for any personal purpose, the employees are required to notate that and submit that information to the City Clerk within five days of the end of the preceding month.
2015-3 Police Tickets Not Adequately Tracked
Records for police tickets do not provide a sufficient audit trail to ensure that all ticket numbers are accounted for and receipts for fines are deposited and properly posted.
1. There was no log available to indicate how many ticket books were last purchased and who received each book.
2. The books were not numbered.
3. For many of the used books, the log in the back of the book was not maintained or was not properly maintained.
4. The Town utilizes computer software designed to track citations. We obtained reports from that system that
indicated that several ticket numbers were not posted. It appeared that approximately 102 ticket numbers were
missing from a report run from January 1, 2014 through February 1, 2016.
5. We attempted to trace a sample of tickets per the report to either collection or an issued warrant. Tickets are paid at Town Hall. The clerks write a receipt when tickets are paid. If the payer does not bring a citation, the clerk asks the payer what the charges were and takes payment based on a fines schedule. If the citation is not available, the citation number is not written on the receipt. This condition, and the fact that the receipts were not issued in order, made it very difficult to trace tickets to payment.
6. Using the information available to us, we estimate that there were approximately 210 tickets issued during the
fiscal year. Revenue for the year was $7,730 making the average ticket amount $37. This amount seems low
because fines range from $25 to $314.
2015-4 Cash Receipt Books Not Properly Maintained
Prenumbered cash receipts were not used in order. We were unable to complete a routine test of cash receipts because
it was nearly impossible to determine how many receipts were issued during the fiscal year. There was no
reconciliation between the receipt books and deposits.
Common procedures include:
1. Using a prenumbered receipt book in order.
2. Notating in the books which receipt numbers were included in which deposit.
3. Retaining all copies of any voided receipts.
M2015-1 Purchase Orders Issued After Invoices
Out of twenty-five disbursements tested, two disbursements did not require a purchase order and eight disbursements were supported by purchase orders that were issued after the invoice date. The purpose of purchase orders is to authorize before an expense is incurred by the Town. The employee tasked with authorizing purchase orders should consider whether each purchase is allowable, necessary and reasonable, and included in the budget.
We recommend that employees be educated as to the objectives and purposes of purchasing procedures. A supervisor should periodically review purchases to ensure that procedures are being followed.
See here the complete audit.