Iola has received offers from three firms seeking to conduct a special audit of the city’s finances from 2007 through 2010.
That the bids varied so widely — ranging from $11,210 to $65,020 — prompted Iola City Council members to ask for two weeks to look more closely into what each bid entailed.
The lowest bid, from Berberich, Trahan and Co. of Topeka, estimated the audit would require between 90 and 120 hours to complete, council members were told. The high bid, from Sindoll, Janzen, Hawk and Lloyd of McPherson, meanwhile, estimated such an audit would require about 390 hours of labor.
Councilmen requested the special audit shortly after firing former City Administrator Judy Brigham in August.
While no formal reason has been given for Brigham’s dismissal, council members conceded that errors in the budget process for 2012 were a catalyst.
City Administrator Carl Slaugh said the special audit would:
— Analyze enterprise fund accounts and balances, and provide a detailed analysis for amounts transferred to other funds.
— Review claims made through the Federal Emergency Management Agency following the 2007 flood.
— Analyze enterprise fund accounting procedures and potential for mismanagement.
— Review court accounting practices and internal controls.
— Use past audit reports for areas of concern or lack of accountability (such as credit cards, EMS billing or using unauthorized vendors).
— Analyze purchasing practices within the enterprise and warehouse funds for compliance with Kansas law.
“I definitely think we need to have this audit completed, but we need time to evaluate the cost,” Councilman Ken Rowe said.
Councilman Kendall Callahan thought it inappropriate that the third bid came from Lowenthall, Webb and Odermann of Lawrence, which handles the city’s regular audits.
Council man Joel Wicoff questioned the move.
“I can’t see this being a good use of taxpayer funds,” Wicoff said, in light of the city approving previous audits that uncovered no signs of malfeasance, coupled with upcoming expenditures. “I’d like somebody on this council to explain to me what the purpose of this is before I could ever possibly spend the money.”
No explanation was given. A vote to table a decision passed 6-2, with Wicoff and Don Becker opposed.
COUNCIL MEMBERS renewed, 7-1, a license for Ray’s Mini Mart to sell adult entertainment materials (Steve French opposed). They unanimously approved a cereal malt beverage license for El Pueblito’s, 902 N. State, and a request from the Bowlus Fine Arts Center to install a fountain outside the building’s front entrance.
