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Crockett council accepts audit and orders special meeting after citation over pre-signed checks
Summary
The City of Crockett accepted an unmodified annual audit but acknowledged a repeat citation for pre-signed blank checks that briefly froze reimbursements; council approved the audit, called a special meeting to correct controls and placed currently signed blank checks on hold.
Crockett city council on March 7 accepted the city's annual audit and moved to convene a special-call meeting after auditors cited a repeat internal-control problem involving pre-signed, blank checks.
Molly Abeli of Axley and Rodi, the city's auditor, said the firm issued an unmodified opinion and summarized the financials: total net position was about $10.6 million with relatively small year-over-year change, restricted cash for specific purposes, a tax note for pool renovations of about $775,000 and nearly $800,000 in coronavirus-related relief funds not yet expended. "We are issuing an unmodified opinion," Abeli said during her presentation.
Discussion focused on a lingering audit citation that staff described as pre-signed blank checks being completed after signatures were applied. Staff told the council the issue had been cited previously and that state reviewers froze reimbursements and held accounts pending submission of a corrective action plan. Councilmembers expressed concern that the finding affects the city's ability to obtain or disburse state grant funds.
A councilmember moved to accept the audit, schedule a special-call meeting as soon as possible to finalize a corrective-action plan, and to hold any currently signed blank checks from payment until the issue is resolved. The motion was seconded and approved by voice vote.
Staff said they would prepare the corrective-action documentation and that any budget or payment adjustments required to address the citation would return to council for approval. The council's action accepted the audit report while directing prompt administrative steps to remediate the internal-control weakness.
