Installment Loans News Break: The Andalusia Star-News

The city of Florala’s most recent audit has uncovered several serious issues in the way the city handles its money — one of which cost the city nearly $8,000 in overdraft fees.

Quoted With Edits From: The Andalusia Star-News (The Andalusia Star-News)

Florala needs much more than installment loans now…

Andalusia, Alabama’s own The Andalusia Star-News brings to light some serious accounting problems on the part of city government that taxpayers ultimately end up paying for.

They always do, don’t they?

Ken Odom

Independent accountant Ken Odom of Rabren, Odom, Pierce & Hayes, P.C. gave the city an “unqualified report” on the recent audit that discovered the careless discrepancies. He even went so far as to say that the findings from the 2006-07 fiscal year audit showed Florala to be in “sound financial shape.” I guess no installment loans were needed that year, huh.

Here’s a lucky seven from the complete findings uncovered during the audit:

• Bank statements were, in some instances, accumulated for several months before being reconciled to the appropriate general ledger accounts. It was noted here auditors found insufficient fund charges totaling $7,500 for the year to the city’s general fund cash account.
• Checks are not being recorded in the check register on a timely basis.
• A reconciliation of accounts receivable from the general ledger to the accounts receivable detailed ledger should be prepared to check that the recording of transactions are accurate and proper and that any adjustments to or write-offs of accounts receivable have been approved.
• Accounts payable were understated due to lack of reconciliation.
• Grant revenues and expenditures were not recorded at all, recorded in the wrong fund or intermingled with other accounts in the ledger.
• In some instances, the city paid for both the gas and mileage to the employee for city travel.
• Purchases and disposals of fixed assets were not recorded properly.

Let this be a lesson to you. Make a budget, stick to it and keep track of all transactions in a timely manner. Then you’ll know if you really need installment loans when you’re in a pickle.