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West Siloam Springs auditor: 2You cannot buy anything without encumbering the funds first2
Summary
At a Feb. 13 special meeting the town's auditor presented the FY 2025 audit and warned trustees purchases must be encumbered before spending; he handed out emergency purchase-order guidance and recommended written procedures be drafted for adoption at a future meeting.
The Board of Trustees for the Town of West Siloam Springs heard a presentation on the FY audit ending June 30, 2025, at a special meeting on Feb. 13, 2026. Auditor Robert St. Pierre, C.P.A., P.C., distributed handouts including Emergency Purchase Order procedures and emphasized the financial-control requirement that purchases be encumbered before spending.
"YOU CANNOT BUY ANYTHING WITHOUT ENCUMBERING THE FUNDS FIRST," St. Pierre told trustees, explaining that encumbrance protects budget integrity and helps avoid personal liability when purchases are made before funds are reserved. He recommended adopting blanket purchase orders to reduce the number of individual purchase orders, but cautioned that blanket orders are not well-suited for generalized Amazon orders because product descriptions and quantities vary.
St. Pierre advised trustees to size purchase orders slightly larger than the expected amount to avoid shortfalls when items or costs differ from estimates. The auditor led a question-and-answer session and provided Emergency Purchase Order procedures for town staff to use when time-sensitive purchases are necessary.
A participant identified only as Kenny warned trustees about the legal ramifications of purchasing before encumbrance and said there have been instances cited in the audit where purchases were made without first encumbering funds. The board asked St. Pierre to write up formal purchase-order procedures, including emergency PO guidance, for possible consideration at the next board meeting.
The presentation and guidance were recorded during the board's special meeting at West Siloam Springs Town Hall on Feb. 13, 2026; the materials handed out at the meeting were referenced by the auditor during his remarks.
