McComb Selectman Tommy McKenzie blasted the city’s incomplete audits Tuesday, saying CPAs hired to clean up books are not keeping pace with the work as they promised, leaving the city’s financial position murky.
City Administrator David Myers said Bruno & Tervalon of New Orleans would have the 2018-19 audit completed by the end of November. In the past, Myers said the audit for 2019-20 would be completed by the end of the calendar year, but it appears that will not happen.
Mayor Quordiniah Lockley said work for the 2019-20 audit would begin in December or January and be completed by May.
“We were told we would have two by the end of the year,” McKenzie said.
“I said that, Selectman McKenzie, being optimistic,” Myers replied. “Now, there’s no way that I can guarantee this board we would have two audits.”
McKenzie noted the city hired Jackson CPA Carolyn DuPre to complete financial statements so Bruno & Tervalon could perform the audits.
“We were told we were going to get two years by the end of this year and we hired DuPre to get the financial statements and that’s all documented,” McKenzie said.
Myers said the city would need to continue employing DuPre to work on financial statements from previous fiscal years.
“When are our people that we pay going to be up to speed so that she can be hired minimally?” McKenzie said.
Lockley attempted to clarify.
“Our people are helping Ms. DuPre, which will also cut back on her time with us,” he said. “It’s just that our people are working in (2022-23) trying to make sure those things are done. These are financial records that have nothing to do with our people.
“They’re cleaning up and trying to clean up records from the past that they did not mess up.”
McKenzie was not happy with Lockley’s answer.
“At what point is city hall going to stand up and take responsibility for four years of no audits?” McKenzie said. “At what point? There’s nobody to blame. There’s nobody to blame.
“I don’t like this kind of comment. I want to see positive results in the future. I want to see everybody be successful. I’m not trying to trick. I’m not trying to catch anybody. We just need to get these financials straight. It’s to improve McComb in the future.”
Incomplete financial statements raises questions about every board action that involves spending money, including millions in forthcoming American Rescue Plan Act-funded projects, he said.
“My fear is when we vote on any type expenditure and consent docket, we are agreeing to potential unknown liabilities every meeting,” McKenzie said in a statement Wednesday.
Lockley said monthly financial statements for the current fiscal year would be provided to the board.
“This is what our in-house folks are doing, trying to make sure that everything relating to this budget is properly documented and what we get is accurate,” he said.
McKenzie asked how much longer the city would need to employ DuPre.
Myers recommended hiring DuPre for 90 days at a time and evaluating things when her contract is completed.
Selectwoman Tabitha Felder Isaac said she knows DuPre is doing the work but suggested she come to the board in the next month to provide a report.
Selectman Matt Codding, who participated by speakerphone, asked when end-of-the-year amendments would be made for the 2021-22 budget, which ended in September. Myers did not have an exact date, but he said he is trying to get information to the board as soon as possible.
McKenzie’s statement after the meeting called remarks from Lockley and Myers about the state of the city’s financials insufficient.
“The 2021-2022 year budget amendments have not been presented to the board and the Mayor/CA could not answer Selectman Codding’s request on when that would happen,” McKenzie said. “So, that means, the older financials and the current financials are not in order.
“Also note, the budgets we have received do not have a beginning balances. There’s really no way of defining a beginning balance because the last known audited balance occurred in 2019.”
McKenzie said the city is spending about $250,000 annually in outside help to get finances in order, but that is happening “at a slow pace.”
“The city is in direct violation of most all codes of the Mississippi Municipal Audit and Accounting Guide,” he said, adding that he still hasn’t heard a response from Williams about his question of whether a sitting board member could be held responsible “for financial and budgetary inconsistencies.”
