Sean C. Morgan
The Sweet Home City Council received a nearly clean audit report for the 2009-10 fiscal year during its regular meeting on March 8.
The city and other government agencies are audited annually, and a report is delivered to the governing body.
The auditors, from Grove, Mueller and Swank, PC, identified a single “significant deficiency” left over from the previous budget year and one new deficiency in city accounting.
A “significant deficiency” is a deficiency in internal control that is less severe than a “material weakness,” yet important enough to merit attention by the council.
The city had no “material weaknesses,” a situation in which there is a reasonable possibility that a financial misstatement might not be prevented, detected or corrected on a timely basis.
Previously, the city had three items. Two of them had been corrected. The third is that documentation of bank reconciliation was not being done. The review is now being done, but the reconciliation has not been agreeing with the city’s general ledger.
Related to the previous item, the auditors noted this year that cash balances have not been reconciled monthly and there were differences between the checking account reconciliation and general ledger at the end of the fiscal year, June 30.
The auditors recommended that the finance director monitor that reconciliations are properly completed.
The finance director is aware of the situation and has initiated appropriate follow up, according to the auditors.
A lot of the problem is how the city recognizes credit card payments and online payments and how they interact on city spreadsheets, said Finance Director Pat Gray. She is hoping to have software updates installed this month that will help city officials correct the deficiency.
Overall, the city finances received a clean bill of health, she said.
While other cities are struggling and making cuts and despite shrinking revenues, Sweet Home is in comparatively decent shape, she said. “We try to make sure we have a good healthy carryover by only making purchases that are necessary. We’ve done without for so many years, it’s not like elsewhere.”
In other business, the council recommended to the Oregon Liquor Control Commission the approval of a liquor license for Lynn Owen doing business as the Skyline Inn, 2425 Main St, for a limited on-premises sales license. The license would allow beer and wine to be sold at the table for on-premises consumption only.
The council voted 5-0 to accept the audit and recommend liquor license approval.
Present at the meeting were Ron Rodgers, Marybeth Angulo, Scott McKee Jr., Greg Mahler and Mayor Craig Fentiman. Absent were councilors Jim Gourley and Laurie Osborne.