CITY OF WATKINSVILLE SPLOST FUNDS IN VIOLATION
OF GEORGIA LAW LEAVES A GREAT RISK OF FRAUD
OR MANIPULATION OF THE FUND.
Georgia law 48-8-121 was codified in 2010, reads, “Such proceeds (SPLOST) shall be kept in a separate account from other funds of such county, and each qualified municipality receiving proceeds (SPLOST) of the sales and use tax and shall not in any manner be commingled (mixed) with other funds of such county.”
According to Rushton Independent Auditor’s Report on the year 2020 that ended June 30, 2020, the City of Watkinsville expended grant funds in the SPLOST Fund and recorded the grant revenues in the General Fund in direct violation of OCGA 48-8-121. This type of accounting is done on our Social Security account by the Feds, they use it to cover other expenses, and it does give a false accounting for the General funds.
Criteria for OCGA requires SPLOST proceeds not be commingled with other funds of the City. City staff did not record grant revenues in the SPLOST Fund that were expended from the SPLOST Fund. According to the report the City Manager concur with the reports finding, and the City complied on September 18, 2020.
The Rushton Reports on the years 2017, 2018, and 2019, never mentioned the SPLOST funds as being in violation of George law. The funds were drawing 0% interest for 2016, 2016, 2017, 2018, and 2019. Apparently the SPLOST funds were moved sometime between June 2019 and 2020. Was this movement between the SPLOST account and the General Fund an ulterior motive to take eyes off of the five years of 0% interest on the SPLOST accounts?
One of the significant deficiency for 2017 through 2020 Rushton audit, was 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.
What I can determine from this post is that the City Manager needs to step up and control the City's accounts more closely.
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