Review of records reveals trouble in Sulphur Springs

Wednesday, October 2, 2013

For now, a true picture of the city of Sulphur Springs’ financial health remains unknown. At best, its books are really “messed up,” as revealed by Alice Peck, Sulphur Springs’ recorder/ treasurer, during a Sept. 24 called working city council session.

The meeting was called by council members to get answers to their and their ward voters’ questions - simple questions, like Peck’s office being closed for unknown reasons.

One constituent needed to pay a water bill before the city turned off his water. City employees turned off his water as required by law.

The five council members, Mayor Bobby Simon, Alice Peck and Seth Becket, city attorney, discussed three additional topics of concern during their more than hour-long meeting: Why the state auditor is in Sulphur Springs between the normal two-year audit, hiring procedure for city employees and city ordinance discrepancies in code manuals.

Because of the unexpected arrival of the state’s auditor, the mayor asked Peck to close her door. The auditing of the city’s books should bring answers as to why the city had seemingly not paid tax revenue to the IRS since 2012. Another answer sought by the auditor could be the subject of an anonymous tip about the collection of child support and money not forwarded.

Peck said the city’s April 2012 bank statement reconciled. She blamed a computer glitch in the newsystem for some of her issues. It seems the software company’s program had not transferred or coordinated correctly city budget items with bookkeeping.

“It looked like things were pretty good up to April 2012,” Councilwoman Susan Buckner said, “as best as we can tell.”

Buckner has been volunteering her time to assist Peck in tracking city fi nancials through computer fi les.

Books balance through July 2013 but bank reconciliation is not current, Peck said. “As of last month [August of 2013], we still owe the IRS $15,000.”

IRS payments should have been set up automatically through software, Peck said.

Debbie Medley asked Peck if she needed a tax attorney to help her straighten out the books.

“Okay, if the city could afford one,” Peck replied.

Reportedly, the state’s auditor is completing audit of records from April 2012 through February 2013. Peck and the auditor found debited taxes from the city bank account and checks filled out for taxes but never mailed by the previous clerk. Other Business

Alderwoman Debbie Medley asked Peck and Mayor Bobby Simon why they had not posted the water clerk’s position since Peck had scheduled herself off up to six weeks, beginning on Oct. 1. Peck, it seems, had taken leeway to hire someone she felt would know how to work the new computer system and to clerk during her leave.

“That’s not what I asked,”Debbie Medley said. “She asked Alderman Greg Barber to read code for employment. The code clearly states the city must first post all city employee openings 10 days before filling any position.”

Mayor Simon said, “Guess all employees of Sulphur are illegal.”

Attorney Becket recommended passing a resolution to hire the temporary clerk this time because of Peck’s leaving in seven days. He asked Peck if she needed help to get the city’s books caught up. She said she thought someone else in position of clerk while she tended to secretary/treasurer duties would help.

Becket said that, during his review of two of the city’s code manuals, he found some discrepancies in ordinances. He said “they do not jibe” and that he had contacted the Arkansas Municipal League to research how the city should update ordinances. He said it seems all new ordinances should go to League for review before implementation.

Sherman Buckley, city inspector, said he had found ordinances as old as two years written in city council minutes and never updated to either code manual.

Every council member and the city clerk should have an up-to-date manual at all times, Becket said. Also, one current ordinance manual should be on display in city hall for public use, he said.

Becket suggested more communication between city offi cials.

The council decided to hold working meetings once a month, beginning Oct. 1 at 6 p.m.

Community News, Pages 13 on 10/02/2013