The Town of Hennessey was gigged for “inadequate record retention” by its auditor over a $99,000 capital outlay check issued in 2022-23.

“The check was cleared with no purchase requisitions, orders or invoices retained on file,” according to the “finding” by Arledge & Associates.

Trustee David Jones didn’t question Arledge’s finding, but did question the firm’s “cause and effect” in its report during the board’s meeting at 6 p.m. Monday, Sept. 9.

That report lists “the problem was caused by, not-only inadequate purchasing procedures,” but also by “insufficient staff to develop effective internal controls for accurate and complete records.”

Jones noted that Town Administrator Tiffany Tillman wrote something similar in her management response.

“The town was short-staffed for more than half of the year at Town Hall and organization suffered,” Tillman wrote. “In current fiscal year, the Town is again at full staffing and began utilizing their imaging software to attach invoices in the accounts payable module. The anticipation is to expand on the use of the imaging software for other applications in the accounting system.”

Jones questioned that there was a lack of staffing for six months.

Tillman said there is a high learning curve on some of the town’s programs.

Board members agreed to table the 2022-23 final audit report until next month.

Tillman and Burch Questioned

Jones started his questioning about the auditor’s report by asking Tillman for the “ballpark cost” of the audit by Arledge & Associates.

Tillman said she thought it was about $6,100 and also said if he’d asked her before the meeting she could’ve looked it up and been certain.

“I just wanted to ask you these questions in front of the camera there,” Jones said, “and I’m not trying to be rude to you...What did Crawford & Associates provide for the audit?”

“Crawford comes in and does all of the financial statements,” Tillman said, “and Arledge audits those financial reports, along with all of our documentation.”

“So you and Shelley don’t do the financial statements?” Jones asked.

“No, Crawford does all of that,” she said. “He comes in for two or three days and we give him the information he needs.”

Next Jones asked Town Treasurer/ Office Manager Shelley Burch what she does and Burch said she gives them whatever information they want.

“So what do they ask for?” Jones asked.

“Sometimes it’s bank statements...” Burch replied.

Jones then asked Tillman, “So then you and Shelley don’t do any of the financial statements?”

Tillman again said Crawford does all the financial statements.

Jones asked if anyone else had input in providing information and Tillman said former Mayor Clif Vogt (who was also assistant treasurer at that time).

At the Meeting

All four members were at the meeting: Mayor Harold Shaw, Trustees David Jones, Bert Gritz and Randy Bohnstedt.

Also present were Town Clerk Kelley Vaverka; Town Attorney Jared Harrison, Tillman and Burch.

In the audience were Ashley Zielny, Georgia and Logan Tillman and Tim Riddle.

( Ed. note: See the weekend edition for more from the town board of trustees meeting.)