Deficiencies Noted By Legislative Audit

The investigative audit issued by Legislative Audit details the following deficienices by the city of Farmington.

• The Court bank statement and reconciliation were not reviewed by someone other than the employee preparing and making deposits and entering receipt information in the System.

• The General Fund bank statement and reconciliation were not reviewed by someone other than the employee preparing and making deposits and posting transactions to the financial accounting system.

• Bank reconciliations were performed by the same employee who prepared deposits.

• Only one employee had authorization to enter and edit information in the Court System.

Other deficiencies included the following:

• Court records were not maintained for all cases.

• All receipt books were not maintained.

• Cash register transaction reports were not maintained.

• Receipts were not issued for all funds received.

• General fund revenues were miscoded.

Additionally, the Council and City management did not provide proper oversight of financial operations. Specifically, the Council did not:

• Ensure adequate internal control was established and monitored.

•Adequately investigate decreases in budgeted and actual court revenue.

• Adequately investigate variances between court revenues and expenditures.

City management did not:

• Exercise proper oversight of fiscal operations.

• Establish internal control to adequately segregate duties among fiscal staff.

• Investigate decreases in court revenue compared to number of tickets issued.

• Investigate decreases in court revenues, although expenditures were consistent.

SOURCE: ARKANSAS LEGISLATIVE AUDIT REPORT