Cheneyville’s sketchy accounting draws audit findings again

By JIM BUTLER

An audit report released seven months after the bean counting was complete indicates Cheneyville was still working on getting its accounting house in order.

The report for the year ending June 30, 2022, summarized on Dec 31, 2022 and published after completion of another fiscal year shows shortcomings of previous audits still existed.

Among one that could be most troublesome is the town’s apparent failure to remit state or federal payroll taxes.

Related, the town at time of the audit was in discussion with the IRS over a civil penalty stemming from the 2015 payroll tax year.

Cheneyville officials lay many of the audit shortcomings on a former town clerk allegedly unfamiliar with various rules, regulations and requirements.

Findings noted by auditors for the second consecutive year include:

Failure to remit payroll taxes;

No reliable measure of meter deposits;

Not updating utility rates to annual indexing;

Not enforcing uniform utility cutoff for non-payment;

Not remitting certain fines, fees, court costs from traffic ticket collection;

No written minutes of town council meetings;

Failure to make utility sinking fund payments, as required by debt covenants.

The town responds that it has retained professional services for annual calculation of proper utility rates and will examine procedures and work toward uniform cutoff policy.

Additionally, other noted shortcomings will be corrected, the town again says.

The audit shows Cheneyville’s General Fund received $604,000 and a Utility Fund transfer of $67,000. Expenses totaled $600,000.

The Utility Fund has an operating loss of $146,000. Expenses included $217,000 in depreciation.

Mayor Derrick Johnson was paid $8,255, plus $4,200 in expense allowance and $12,443 in reimbursements.

Councilman Charles Collins drew $3,185; members Francis Mitchell, Ronny Green Jr. and Rebecca Cook, $2,210; Ruby Crawford, $1,190; and Marilyn Jones, $827.