Ruston Independent Auditor’s Report for 2017 listed four items that needed correction. In each instance management agreed with the report and would implement the recommendation of the Ruston’s report. And in each of instances the city stated they took action immediately.
2017-001—the occupational tax and traffic citation receipts were not made timely, and held for seven or more days before depositing. Internal controls require that cash receipts be deposited and transactions recorded in a timely manner. Failure to deposit cash receipts in a timely manner exposes the City to a greater risk of loss due to fraud. It was recommended at a minimum, deposits should be made weekly.
2017-002—adequate supporting documentation is not maintained for credit card transactions. Internal controls require that all transactions be properly supported by appropriate supporting documentation. Failure to maintain proper supporting documentation of transactions subjects the assets of the City to a greater risk of misappropriation. It was recommended monthly statements for each credit card account, and attach individual receipts for each purchase made during the month.
2017-003—significant deficiency in the application of generally accepted accounting principles and the preparation of financial statements. Failure to understand the financial statements may lead to material misstatements. It is recommended City personnel should receive training in the identification and application of generally accepted accounting principles and the preparation of the City’s financial statements.
2017-004—journal entries did not have evidence of approval. Proper segregation of duties requires that the duties of authorizing and recording adjustments to the general ledger be performed by different employees. Failure to properly segregate the duties of authorizing and recording adjustments to the general ledger exposes the City to a greater risk of loss due to fraud.
The Rushton 2018 report came out on November 17, 2018. The items 2018-001, 2018-002, 2018-003, and 2018-004 were exactly identical to the 2017 report wording for 2017-001, 2017-002, 2017-003, 2017-004. It was in that same month, November 2018, that City Council created a City Administration position and hired Dickerson. Was the new position created to correct the City’s deficiencies?
The Rushton 2019 report came out on October 31, 2019. The items 2019-001, 2019-002, 2019-003, and 2019-004 were exactly identical to the 2017 report wording for 2017-001, 2017-002, 2017-003, 2017-004. Dickerson had made no improvements from the 2018 report. In November 20, 2019 the City Council created a new City Manager position and gave that position to Dickerson for her ‘good work.’ Was the new position created to inspire Dickerson to correct the City’s deficiencies? Well it didn’t work.
The Rushton 2020 report came out on November 25, 2020. The items 2020-001, 2020-002, 2020-003, and 2020-004 were exactly identical to the 2017 report wording for 2017-001, 2017-002, 2017-003, 2017-004. In each instance in the 2019 report management agreed with the report and would implement the recommendation of Ruston’s report. And in each of instances action was taken immediately. But no action was taken according to the 2017, 2018, and 2019 report.
But according to the 2020 Rushton report, the City seemed to be getting worse under Dickerson. No only did she not correct the past three years problems but another problem was created.
2020-005—the City expended grant funds in the SPLOST fund account and recorded the grant revenues in the General Fund. OCGA Code 48-98-121 requires that SPLOST proceeds shall not be commingled with other funds of the City. All revenues and expenditures should be accounted for within the appropriate fund. Are these funds in violation of Georgia law?
Who had the authority to create a new SPLOST revenue account in the General Fund. This was around the time Dickerson without authority moved all City funds into Oconee State Bank. One of the discrepancies the audit mentioned, journal entries did not have evidence of approval. See my post “Watkinsville SPLOSH funds violate Georgia law” dated June 26, 2021.
From November 2018 through 2020, Dickerson had not found the time to clean up the above deficiencies. Will the 2021 Rushton report be the same? So exactly what was the real reason for the City Council creating a $92,000 a year City Administrator that hasn’t correct the deficiencies, and give it to Dickerson who failed in her duties as a City Administrator if the same deficiencies still continue year-after-year?
The only ‘good work’ that I could find was for the Oconee State Bank, when apparent for no reason Dickerson moved all the City accounts from three banks, and put them into one bank, the Oconee State Bank,. After moving the funds to Oconee State Bank, Dickerson created a committee of four non-Watkinsville residents for determining which bank would get all the accounts, and then after the fact, submitted a letter to the City Council for approval to move the funds to Oconee State Bank.
So exactly what are the 2,800 Watkinsville residents, in a 3.3 square mile town, getting for their $92,000 a year City Manager? I can understand the Oconee County Bank being happy with Dickerson, but as a Watkinsville resident, I don’t think she isn’t worth the expense.
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