Other problems in audit
Other problems involving Cave Springs’ finances found by state auditors but not cited for noncompliance with state law include:
■ Overpaying a former police chief by $6,993 for unused sick leave and paying him twice for unused annual leave for an over-payment of $2,600.
■ The mayor entered a $194,835 contract with an engineering firm without council approval.
■ The mayor’s assistant “was paid a car allowance of $4,800 that was not authorized by the council.” Two employees unnamed in the report who were not eligible for family plan health insurance in 2016 got coverage anyway at a total cost to the city of $8,100.
■ In the recorder/treasurer office, “receipts were not deposited timely and intact. Numerous posting errors were noted,” and the records are so incomplete “we could not report receipt tests for all funds for 2016 and 2015.”
■ The city violated its policy of paying 42 cents a mile for mileage and paid 57.5 cents, and reimbursed travel mileage without a documented business purpose or a mileage log. Cave Springs put an unspecified amount of money meant for legal fees and information technology services into the street fund.
■ City vehicles were used for routine commuting and that benefit wasn’t reported on the involved employees’ Internal Revenue Service’s W-2 forms as required by the IRS,.
■ Payroll records also omit some required documentation. “All eligible employees were not enrolled in retirement plans, and employee retirement contributions were not properly deducted from employee’s paychecks, reconciled to retirement statements and paid by the city.”