City auditor reviews 2022 audit findings and corrective steps; promissory note for fire truck flagged

City Auditor Mrs. Holland presented the status of the 2022 audit findings and described steps taken to correct prior noncompliance issues, and noted the city repaid a promissory note used to purchase a fire truck.

Holland told the council the 2022 noncompliance audit findings were provided on Dec. 20, 2024. She said banks initially misreported collateral coverage but corrected the error, and the city has posted a copy of its public records policy in the city building foyer and begun obtaining acknowledgments from records custodians. Holland said the city's credit card policy was revised in the 2024 personnel policy and the treasurer completed required education hours in 2024.

Holland said the city had expenditures in excess of appropriations in the general fund and the ARPA Local Fiscal Recovery Fund on Dec. 31, 2022; those were corrected with appropriations in 2024. She also reported that principal payments had been made on an outstanding promissory note used to purchase a fire truck, and that "this type of debt is not authorized by ORC," saying the city had no statutory authority to incur debt through promissory notes with a banking institution.

Holland said the fire truck loan was paid in full in 2023. She announced that the 2023 audit exit conference is scheduled for Thursday, Jan. 30, 2025 at 1:30 p.m., and that 2023 audit responses will be posted on the city website by the end of the week. Holland also said the December 2024 expense and revenue budgets and the bill adjustments report were emailed to council on Jan. 24, 2025 and will need council approval.

Council member Miss Ferguson asked for clarification about whether the revenue budget report and suspension budget were month-only or year-to-date; Holland confirmed the emailed packet covered the month.