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Home arrow Memo Regarding Missing Checks
Memo Regarding Missing Checks
icon FACTS - Memo Regarding Missing Checks.pdf

Date:     October 7, 2013

To:        The Mayor and City Council

From:   Rochelle Clayton, Finance Manager

Re:       Anonymous Mailer to LHH Residents

 

An anonymous mailer sent to City residents included a section entitled “Financial Integrity Questions” that purports to have uncovered missing checks.  The checks referenced in the letter are not missing but they were omitted from a list of checks on some warrant registers, a monthly report to Council. These omissions were made by a former accounting technician who was terminated for cause from City employment in July 2012.   

Negotiated Checks Omitted from Warrant Register (see attachment)

I personally reviewed each transaction and determined two primary reasons for her errors. In some cases, she closed out the warrant register before the end of the month in order to make the agenda deadline. Then she continued to issue checks without putting them on the following month’s register. On other occasions, she reissued checks to correct errors and did not note the reissued check on the register. Though these checks did not appear in the warrant register, each was issued for a valid purpose and properly entered into the City’s accounting system and check register (see attached report).

Cancelled or Voided Checks Omitted from the Warrant Register

As previously noted in The FACTS the former accounting technician did not list unused or voided checks on the warrant register because those checks were not negotiable. In reviewing all her work and the City’s financial records I found approximately 430 unused or voided checks. Most of the unused checks became unusable when the City changed banks from Bank of America to Wells Fargo. Since I became finance manager in March of 2012 I made it my practice to list every check in the warrant register, even those voided or cancelled.   

To view warrant registers go to the City’s website www.lhhcity.org, choose Agendas, Minutes and Videos from the menu on the right; then select a Council meeting agenda. The warrant register for the previous month is on each agenda.