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Cherokee Village council acknowledges $8,203 transfer to correct 2024 payroll audit finding
Summary
The council acknowledged a recommended $8,203 transfer from the payroll fund to the general fund to resolve an unidentified balance on the 2024 legislative audit; the transfer was noted in the minutes after a motion and passed by voice vote.
The Cherokee Village City Council on July 9 acknowledged a corrective transfer of $8,203 from the payroll fund to the general fund to address an unidentified balance flagged on the 2024 State of Arkansas legislative audit.
Clerk Penny explained the discrepancy as a bookkeeping issue in the payroll system in which certain payroll deductions had been entered but not properly checked in the system, leaving a holding-account balance showing as "unidentified." Penny said the money had been paid but the accounting entry left the funds in a holding account; the recommended correction is a transfer that creates a paper trail for auditors and balances the payroll fund for 2024.
Council recorded a motion to acknowledge the transfer and a second; Mayor Rose stated the acknowledgment would be entered in the minutes. "We just acknowledged, you know, in the minutes that it's okay to do this," Penny said during the discussion. A voice vote recorded all in favor.
Why it matters: the transfer is an administrative correction intended to resolve a legislative audit finding and prevent a repeated finding on the 2025 audit if the same bookkeeping anomaly persists. Council described the action as an accounting correction, not new spending.
Next steps: the transfer will be recorded in city financial records and provided to auditors as the corrective action for the 2024 payroll fund finding.
