Representatives from two accounting firms released the results of a several months long audit of the City of Yukon’s financial status during a special City Council meeting on Thursday.
A representative from Crawford and Associates presented a Forensic Audit Final Report and an auditor with HBC CPA’s and Advisors presented a revised 2014-2015 audit that are both now available to the public.
Frank Crawford said that during his firm’s audit, “Certain concerns were expressed or allegations made by various individuals or parties actions with regards to former city management.”
Those concerns were leveled at former City Manager Grayson Bottom and included allegations of non-compliance with competitive bidding requirements, bid splitting and improper payments for certain contracts.
Crawford cited purchases made outside “the normal claims process and approval process for certain purchases” that could involve “individual conflict of interest in regards to a 2.4 million land purchase.”
The city’s finances were in such disarray Crawford said, “When compared to other communities that we deal with in this type of work, this was the worst mess I’ve ever seen.”
Addressing assertions that the city is “missing money” due to past financial irregularities, the auditors debunked those reports out of hand.
“All the money was accounted for,” Crawford said. “There is no money that we could not locate, money that couldn’t be found. There were certain monies that could only be spent for certain things that were spent on other things but there is no missing money; nothing we could see from embezzlement or a theft of assets. All the money was accounted for.”
Yukon City Manager Jim Crosby said concerns that were not addressed in the 2014-15 revised audit over questions and allegations of improper purchasing procedures have been examined and “all pertinent information has been referred to the property authorities.”
As a preventive measure, Yukon Mayor John Alberts said city officials will be given a monthly report on the status of all the city’s accounts “so the council is now monitoring the status of the different accounts each month.”
He also reported that funds drained from the city’s reserve fund has grown from $905, 987 to $1,476,094, an increase of $570,107 since Crosby was re-hired last April.
“That’s an example of the policies and procedures that we’ve implemented and the progress we have made,” Alberts said. “While the audits have been in progress, the council has been working diligently to repair the problems that existed and once we discovered those, we’ve implemented policies and changes and we’ve continued to implement policies in order to not only to address what’s happened, but to prevent these things or anything like this from happening in the future.”
Copies of the budget audit can be obtained by citizens through an open records request at City Hall.