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Liberty audit shows errors

LIBERTY — An audit of the township for 2016 and 2017 containing multiple findings and errors was released on Thursday.

According to the audit, the township at the end of 2016 and 2017 had disbursements for the budget that exceeded appropriations.

In 2016, the police and fire district funds exceeded appropriations, according to the audit. In 2017, there were 10 funds that exceeded appropriations, including the police and fire district fund, the gasoline tax fund and the drug law enforcement fund, according to the audit.

In another finding, the audit found the “township’s final appropriations exceeded the final Amended Official Certificate of Estimated Resources” for the general fund and the permanent improvement fund for 2017. In 2016, the final appropriations exceeded funds in the general, lighting assessment, permanent improvement and public works Issue II funds.

The audit also states that from January 2016 to December 2017, the general fund had a negative balance of between $173,370 to $15,655. At the end of 2017, the police district fund had a negative balance of $87,895, the audit states.

“Negative cash fund balances are an indication that revenues from other sources were used to pay obligations of other funds,” according to the audit. “Fund activity should be monitored to help prevent future disbursements in excess of available resources.”

The audit also found the township lacked procedures for the reconciliation process because in 2016 and 2017, the Health Care Savings account disbursements were “not recorded in the acounting system” and the miscellaneous receipts and disbursements accounts were “not recorded in the accounting system or recorded in error.” Additionally in 2017 there was a disbursement of $5,430 that was not included in the outstanding check report, the audit showed.

According to the township’s official response, the the health care reimbursement accounts are handled by a third-party administrator and that third party disburses payments either directly to health care providers or employees.

“There were disbursements by the third-party administrator that went unrecorded but maintained as outstanding on the reconciliation,” the township’s response said. “These items were identified in 2016 and 2017 and will be recorded timely in the future.”

According to the audit, two former trustees were overpaid by $800 in 2017 due to “the fiscal officer calculating their pay at the wrong rate.”

In the response to the audit, the township said trustees Stanley Nudell and Jason Rubin paid back the $800 as soon as it was brought to their attention.

“There was confusion because the two trustees that were not newly elected should not have received the increase,” the response states. “The township paid all trustees at the higher rate in error.”

Trustee Chairman Arnie Clebone said the fiscal officer and trustees are going to arrange a meeting with the state auditor to see how they can fix the findings and avoid the same mistakes in the future.

“We are going to be working on this,” Clebone said. “We are concerned. We’d like to have an audit with no findings.”

cramey@tribtoday.com

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