RFP Staff
♦ RFP readers raised questions about several incidents of funds embezzled by City of Salisbury employees that are closer to being answered today. How could such embezzlements take place? The financial report for the year ending June 30, 2015 reveals a lack of oversight by City of Salisbury management and that “while documenting internal controls relating to the collections department,” the auditors noted “some personnel have the ability to make certain adjustments without requiring a secondary review. Adherence to all internal controls are not followed.”
Our Associate Editor Todd Paris, Salisbury Attorney noted the audit references in a letter regarding a matter of noncompliance appears in the City of Salisbury’s COMPREHENSIVE ANNUAL FINANCIAL REPORT for the Year ending June 30, 2015 , stating that the auditors of Martin Starnes “noted certain matters that we reported to management of the City of Salisbury in a separate letter dated November 18, 2015” (page 154):
Associate Editor Todd Paris made a public information request to the City of Salisbury, asking that the city release a copy of the letter referred to above. They city complied, sending a copy via Deputy City Clerk Kelly Baker:
In essence, the letter acquired from Martin Starnes, drew attention to Finding 2015-002 in the City of Salisbury’s COMPREHENSIVE ANNUAL FINANCIAL REPORT for the Year ending June 30, 2015 , which is a statement by the auditor indicating that management of the City of Salisbury did not have proper oversight in place to prevent misappropriation of funds by employees who work in the collections department:
What follows is the letter obtained by Todd Paris, in which the text directs attention to the finding sent as a separate letter. There is no explanation as to why the text was not included in the audit finding, as was the text for the other finding (on Fibrant):
Questions remain. Of interest is when the City will reveal what was discussed with Martin Starnes about the “internal controls in the collections department and areas for improvement with management in detail”, as referenced in the Nov. 18th letter? Additionally, how long have such controls been lacking and what types of misappropriations and “errors” could take place, exactly, during the time these controls were lacking? Is there more to be done, considering the letter was dated Nov. 18th? Martin and Starnes clearly states in the letter that their purpose did not include providing assurance on internal controls. How will the City assure the public that taxpayer monies are not being misappropriated? That assurance is the City’s responsibility, and we would like to know the details backing up that assurance.
