Audit report
Recent Audit of the Lawrenceville City Government Financial Operations
A Report on the Inadequacies of Financial Accounting
At the October 3rd, regular city council meeting, the Council unanimously approved the findings and recommendations of the independent audit performed by Moore, Stephens, Tiller, Certified Public Accountants and Business Advisors. City manager, Bob Baroni, now has the responsibility to develop and implement an action plan to address the identified issues.
The findings of the financial audit indicated an inadequate financial and accounting system. These weaknesses included:
1. lack of written accounting controls and monitoring of the city's financial transactions that are safeguards of the city assets and day to day financial operations,
2. lack of inventory controls over construction supplies, materials and equipment.
3. lack of compliance with ordinances already on the books. In other cases there were no ordinances to follow.
In addition, the auditors reported that city projects were often disorganized and paper work was difficult to locate.
What, specifically did the Audit find?
a. Collins-Industrial Microtel Inn-$185,000.00 expenditure on private property without Council approval. This was repaired by the City of Lawrenceville after private property had become damaged during flooding.
b. Hodge Construction Co.--$149,000.00 over payment of contract of $803,000.00 no bid jobs for gas lines over 4 years. This was a single source procurement for gas department for years.
c. Forest Hills Curbing and Paving: $379,000.00 in change orders never approved by the City Council.
d. Police Station Relocation-$7,700,000 reported cost but the actual cost was $10,047,004.00 including $755,470 to Precision Planning, $919,135.00 to Video Insight, $408,186.00 DeKalb Office for office furniture.
e. Gas Department Penalties-$1,395,000/ $1,770,000 with $4,500 paid by department head without reporting to Mayor and Council.
Inventory of Parts and Equipment
There were no written internal controls over materials, supplies, and equipment. There was also no inventory on the city's general ledger and no record of inventory activity. There was no log of equipment use for projects and no department head knew of any equipment use by contractors on projects. There were no procedures, so no inventory activity was performed.
Bob Baroni, City manager, is now in charge of fixing these inadequacies. However, in the end, the City Council and Mayor are responsible and accountable for the city's financial records and the regulatory compliance of financial ordinances.
How will the city council members hold the city manager and the department heads accountable so that they can be accountable to the public?
For a detailed account log on to: www.lawrencevillega.org.
1. click on government at top of page
2. click on city council at left side of page
3. click on budgets
4. click on audit report at bottom of list.
To see the report, click on the following link: Audit report
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