By Emily Priddy
University of Kentucky School of Journalism and Media
The Midway City Council Monday evening honored Dan Roller
and Steven Craig as they leave the council, reviewed a recent audit of the
city, and confirmed the goals and objectives submitted by the planning
commission.
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Council Members Dan Roller and Steven Craig, left and right,
posed with Mayor Grayson Vandegrift after their last meeting
as members. (Midway Messenger photo by Kaitlyn Taylor) |
Roller has been elected to the council three times, serving
since 2011. This year, he decided to not seek re-election. “Dan has been the
driving force on the council in updating the city of Midway’s property
maintenance code,” Vandegrift said, reading from a proclamation he had written. Roller served on the Property Maintenance
Code Committee during his time on the council, working to resolve issues with
blighted properties. Continuing his proclamation, Vandegrift said, “Many
formerly blighted properties have been rebuilt as a result of Dan Roller’s
work.”
Vandegrift added: “Dan put significant time and energy into
making Midway the eighth city in Kentucky to adopt a fairness ordinance.” The
June 2015 ordinance prohibits businesses that have more than seven employees
from discriminating on the basis of sexual orientation or gender identity. In
recognition of his service, Vandegrift declared Dec. 31 “Dan Roller Day.” This
will be his last day on the council.
Craig, the other council member honored at Monday’s meeting,
was one of two members who opposed the fairness ordinance. The other was Libby
Warfield. After serving one two-year term, he ran seventh in last month’s
election for six council seats.
Vandegrift praised Craig in his proclamation for using “his considerable
skills and talents to improve Midway’s city property.” Craig has worked at
Georgetown College for the last 20 years and also works for the Woodford County
Fire Department.
Vandegrift credited Craig for the sidewalk in front of the
Midway Veterans Memorial in the cemetery. Craig was on the council committee
dedicated to sidewalks that created the city’s first sidewalk cost-sharing
program. Vandegrift declared December 30 “Steven Craig Day.”
The council passed a resolution confirming the goals and
objectives for the comprehensive plan adopted by the Versailles-Midway-Woodford
County Planning and Zoning Commission. The council had passed a similar motion
at its last meeting, but Planning director Pattie Wilson asked the council to
adopt a formal resolution.
The goals and objectives had long been a point of contention
because one goal specified an objective that included a proposed northwest
Versailles bypass. If built, the bypass would funnel traffic from Versailles
onto Midway Road, U.S. 62.
The specific reference to the bypass was removed as part of
an amendment by a committee of representatives from the governing bodies,
appointed so that all would be in agreement.
The resolution passed unanimously.
Council Member Sara Hicks, who voted against last month’s motion, was not present
Monday evening.
While the resolution didn’t plow new ground, it gave
Vandegrift an opportunity to comment on planning and zoning issues.
“I think the whole document is a compromise . . . There are
questions that we need to not let drop,” Vandegrift said, alluding to relations
between Midway and the rest of Woodford County. Midway’s sole representative on
the commission, Rich Schein, was left off of the subcommittee that drafted the
goals and objectives.
Versailles Mayor Brian Traugott has proposed giving Midway
another seat on the commission, and the Woodford County Economic Development
Authority, in return for Midway paying more to fund the planning function and
EDA.
Traugott’s proposal was a reaction to tension that arose at
the last meeting between Vandegrift and EDA Chairman John Soper over Soper’s
proposal to raise Midway’s payment to EDA to finance a contract for Soper, who
already has such a contract with Versailles. Midway also only has one
representative on the seven-member EDA board.
Vandegrift told the Messenger that he has scheduled
discussion of the proposal for Jan. 3, the next council meeting, when new
members Steve Simoff and John McDaniel will take office.
Audit finds a weakness and a deficiency
The council also reviewed a financial statement provided by
Smith & Co. CPAs. The statement said the city's finances have a material weakness
and a significant deficiency. The firm described the material weakness as the
city not having internal control “over financial reporting that would allow it
to prevent, detect, and correct a significant misstatement in its financial
statements.”
The statement said, “The city has financial restraints that
prevent the hiring of accounting personnel” such as certified public
accountants. It described a similar cause for the significant deficiency.
In describing the deficiency, the financial statement said
“There was not adequate segregation of duties over receipts, disbursements, and
reconciliations at City Hall. The clerk/treasurer accepts cash receipts and
also records the amounts into the accounting system.”
The recommendations suggested by the firm were: “Mail should
be opened by an employee not responsible for accounting, such as the assistant
clerk or the mayor. Cash receipts could be recorded in a cash receipts journal
and the deposit prepared by this person. The cash receipts journal,
supplemented by remittance advices, could be forwarded to the clerk/treasurer
for postings to the general ledger and detail customer accounts. Cash receipts should be deposited intact daily. Holding
receipts for a weekly deposit exposes the city to loss.
“Bank statements, canceled checks, and appropriate advices
should be received by someone other employees maintaining cash records. Such
items could be periodically reviewed prior to turning them over for
reconciliation. Unusual items noted during the review should be investigated
promptly. Signed checks should be also mailed without allowing them to be
returned to the employee responsible for accounts payable.
“The mayor should review supporting documents for normal
recurring disbursements (not usually reviewed) on a spot-check basis.
Non-routine testing would aid in ensuring compliance with city policy for all
disbursements.”
Vandegrift told Smith & Co. accountant Jason Strange that he actually does such a review when the city issues checks, twice a month. Strange said the statement was referring to corrections in the ledger, which Vandegrift said he does not check routinely.
The audit statement also said, “Journal entries should be approved by an employee other
than the one who prepared the entry. Bank reconciliations should be reviewed by
someone not responsible for entries in the receipts and disbursements records. Inasmuch as this is difficult because of the small number
of office employees, we recommend that test reconciliations be made from time to
time by one of the council members. In addition, he or she should review,
approve, and sign the bank reconciliations to document the approval.”
Strange said both
findings were common for cities similar in size to Midway. “The second finding
is very common for local governments and cities of smaller sizes . . . it’s
related to segregation of duties,” he said.
Warfield, the only council member who asked questions about
the audit, told Strange, "I take from your comments that you're not overly concerned about it."
“I wouldn’t say I’m not concerned,” Strange said. “They’re common.”
Warfield said of Strange’s staffing recommendations, “I can see the benefits
to that.”