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Auditing firm hired to fix city finances

By Todd Harrell | Enterprise-Journal
Posted: 10/10/07 - 01:02:42 pm CDT

After Mayor Zach Patterson and auditors revealed apparent financial irregularities last week, selectmen voted unanimously Tuesday to use the same auditing firm to fix the problems.
At the request of Patterson, Faust & Associates of McComb will relinquish its role as independent auditor so that it can examine the city’s finances in an effort to resolve the city’s financial issues. Once the problem is fixed, Patterson said the city will hire another accounting firm to complete the annual audit required by the state.

Tommy Lindley, CPA, of Faust & Associates is expected to work under an hourly paid contract starting today, Patterson said, adding that it could take 30 to 45 days.

Representatives from Faust & Associates, which has been the city’s independent auditor for many years, told selectmen in a special called meeting on Thursday that they could not finish the fiscal year 2006 audit because they had found irregularities between the the city’s bank statements and ledger.

Subsequently, the city could not turn in its annual audit on time to the state. Patterson said it’s crucial that the city correct the discrepancies as soon as possible so the it can function normally and avoid penalties.

The mayor said he is worried about the city damaging its credit rating if the matter is not cleared up soon, especially since the city is considering issuing bonds to build a $20 million wastewater treatment facility that comes with a tight deadline to be put into operation.
He added that he felt Faust & Associates should be able to fix the problem the fastest since they were already familiar with the city’s case.

Patterson said the assistance is also needed because the city is without two key officials, city administrator Sam Mims and financial director Laura Burris.

Burris announced Monday that her resignation would be effective immediately instead of later in the month.

And, Mims whose retirement officially takes effect Nov. 1 has made it known he will not return either, the mayor said.
During Thursday’s meeting much of the blame was placed on Burris. However, Mims said training from former financial director Russell Wall was at fault and Burris also pointed at Wall in a letter to the Enterprise-Journal published on Monday.

Patterson said after the city clears itself of the financial issues, a full investigation will reveal how the city found itself in this position.

He said he will update selectmen on the matter regularly.

In other news, selectmen voted to allow the mayor and interim city administrator Jackie Martin the authority to pay city debts.


Let us know what you think about this story or topic.



Asking for help wrote on Oct 11, 2007 8:11 AM:

" I must admit that I have never been a supporter of David Meyers. BUT, I am now finding myself in a position that when I see David that I will tell him that I am sorry and BEG HIM TO KEEP A CLOSE EYE ON THE MAYOR!!!!!!!!!!! "

once lived in mccomb wrote on Oct 11, 2007 1:36 AM:

" Ref to "nav vet's" comment, " get rid of the last few white people in city hall, mr. mayor and your quest will be complete " since you feel that way, is it upsetting? give you the feeling that you will not be properly represented? that the police will now harrass you and finally, that black people will get all the best jobs? I know how you feel, i was born and raised in mccomb for 18 YEARS. Wow! you're already crying and complaining and it haven't been a year yet. My My now you see how we felt and was told that we have no reason to have those feelings! Relax, it'll be alright, black people really are good and fair people. "

Pike citizen wrote on Oct 10, 2007 9:37 PM:

" Mr. Patterson keep up the good work, you have open a can of worms that involve some funny money and now everyone is running for cover. You can run but you can't hide the truth. The mayor is only doing his job. What had been done in the dark for years is now seeing some light. "

Accounting major wrote on Oct 10, 2007 7:26 PM:

" An auditor auditing themselves? Please... "

Crisis wrote on Oct 10, 2007 5:54 PM:

" Hey Zach and Mrs Martin: If the City is in such a "crisis" Why did Ms Dillon hire a outside person to tape the board meetings when Don Jackson did that service for free?? How does that relate to Tourism in Mccomb? "

Backbone??? wrote on Oct 10, 2007 5:41 PM:

" "Why do the "elected" selectman of Mccomb sit in a board meeting looking as if they are in another world? All of you must be either be afraid to speak up regarding the dictator-like behavior of the Mayor,or taken your dose of "spine-less" medication. Do any of you have a backbone.???? "

Pimp My Ride wrote on Oct 10, 2007 4:57 PM:

" Maybe Faust can find out which account was used to buy the rims on the Pimp - er-uh - Mayormobile. "

Just my opinion wrote on Oct 10, 2007 4:13 PM:

" Why couldn't Faust & Associates have sat down with the Clerk and help her or explain to her how to fix the problems before it got to the point of her resigning. I dont feel that Faust & Associates should be the ones to correct the problems since they were the ones auditing the books to begin with. I think the City should have hired another agency that has not been responsible for auditing these same books for more than 25 years. "

very concerned voter wrote on Oct 10, 2007 3:34 PM:

" I am so disappointed with the mayor of McComb. I was very impressed with Mr. Patterson during the campaign and thought he would lead this city well. How wrong I was!!!! Since his election, the city has been in turmoil. Mr. Patterson, I believe Mr. Melton now needs a bodyguard----the citizens of this city would love for you to apply. So now Mr. Patterson and Jackie Martin will be paying the bills!!! Please, David Myers, scrutinize all invoices. It seems you may be the only person that can keep the mayor on his toes. "

concerned wrote on Oct 10, 2007 3:17 PM:

" I am concerned that in the short term of the so- called "mayor" that there have been so many special called meetings to get to the bottom of situations that could easily be remedied by a little research and education. According to the last few meetings, it would seem that the mayor is on some sort of mission to rid himself of personality conflicts rather than being more concerned with the state of the city. It seems that McComb is well on its way to becoming a miniature Jackson and that is too scary. " Frank Melton- like" tactis should stay where Frank Melton is, OUT OF MCCOMB. I believe that the full investigation results should be made as public as the circus that has been paraded on the front page. These accused people would love to have their good names cleared. "

nav vet wrote on Oct 10, 2007 12:58 PM:

" get rid of the last few white people in city hall, mr. mayor and your quest will be complete "

Simple Answer wrote on Oct 10, 2007 12:43 PM:

" This is all a "whitewash" on the mayor's part to cover himself. He had to find some excuse to fire Mrs. Burris. "

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