Auditor says city in good financial standing

Reviewing his firm’s annual audit of the City of Eunice, CPA Frank Tujague said Tuesday night that the city is overall good financial shape.
He hit audit highlights at the monthly City Council meeting.
“The city is on good ground. Your fund balances are strong and there is not rampant spending,” he noted.
He said a drop in General Fund cash balance noted in the review for the fiscal year ending June 30 was actually a reflection of overlapping fund transfer periods, not a cash fall.
In its findings, the auditors note that the city did not balance its checkbook for about eight months, an oversight that allowed an identity theft of about $5,500 dollars to occur in 16 transactions over a three-month period.
Responding to the audit recommendation that all bank accounts be reconciled (balanced) monthly, the administration agreed that reconciliations would be done in a timely manner.
The cause of the oversight, it told the auditors, was an unexpected employee turnover resulting in a staff shortage, causing a delay in reconciliation.
The audit also notes that the city needs to formally amend its budget prior to fiscal year’s end when variances of 5 percent or more in expenses/revenues occur.
Such amendments are required by state budget laws.