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City administrator flags missing records, audit hurdles and fund shortfalls
Summary
Buckner's city administrator reported the general fund is about $45,000 short year‑to‑date, the street fund shows a roughly $32,000 deficit, and two accounting firms have tentatively agreed to audit the city despite incomplete fixed‑asset records and missing supporting documentation dating back several years.
City Administrator presented a detailed fiscal update and warned the board of multiple accounting issues that require attention before a full audit can be completed.
Key figures presented: the general fund is operating about $45,000 below year‑to‑date revenues as of August; the street fund shows a deficit of roughly $32,000 driven by personnel and contractual costs; parks operating is ahead by about $12,000; and combined water and sewer funds hold approximately $177,000 in surplus ($155,000 water, $22,000 sewer).
On audits and records: the administrator said two accounting firms have expressed interest in conducting an audit after prior solicitation attempts produced no positive responses. The administrator identified incomplete fixed‑asset accounting and premature disposal of some supporting documents as the primary challenges. "State law requires the city retain seven years worth of financial records," the administrator told the board, adding that the city currently retains about four years of supporting documentation. The administrator said staff will return to the board with proposed steps and cost estimates for reconciling records and supporting an audit.
Accounting process notes: the administrator explained common year‑end "due to/due from" transfers among funds and warned that general ledger balances can be lower than bank balances because of outstanding payments; regular closing procedures will roll fund variances into fund balance.
Next steps: Staff will follow up with projected revenue estimates (including franchise fee projections and possible offsets from gas sales), a plan for addressing missing documentation, and proposals for audit engagement costs.
