Auditors: Despite accounting violations, city economically healthy

Friday, Jan. 10, 1997 | 11:59 a.m.

A report for the 1995-96 fiscal year prepared by Kafoury, Armstrong & Co. found several violations of both accounting procedures and state law.

While statutes require all individual funds to stay within their budgets, the audit determined that general government expenses finished $63,312 over; public safety was $272,939 over; the medical clinic fund was $201,370 over, and the sewer fund was $6,149 over.

In addition the auditors had a number of recommendations to improve the city's accounting system, the Elko Daily Free Press reported.

- Debt and lease payments were made from incorrect payment schedules because updated payment schedules weren't forwarded to the accounting department.

- Two signed, blank checks were found.

- Credit card charges were not properly documented, reviewed and approved.

- And, actual purchase costs and lease payment costs differed from the accepted bids, which could be a violation of competitive bidding statutes.

Otherwise, the numbers added up to a prosperous year for the city.

Sales tax receipts were up from $926,800 to $1.098 million; income from gaming licenses rose from $326,798 to $360,443, and room taxes increased from $932,987 to $982,881.

Property taxes brought in $279,584, a decrease from $283,044 the prior fiscal year, while the city took in $171,824 in fines and fees, a 9.5 percent increase over $156,800 the previous year.