Other prob­lems in au­dit

Northwest Arkansas Democrat-Gazette - - NEWS -

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.”

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