An "independent accountant's report" created by local certified public accounting firm Yoakum, Lovell & Co., PLC, indicates funds totaling "$6,445 in unaccounted revenue" in the Benton Park's and Recreation Department. The funds in question are specifically related to the concession stand account used by the department for operations at city parks.
Inquiries regarding the report were referred to Benton City Attorney Brent Houston who said the report was not a "financial audit" of the department but rather a review of procedures used in accounting for transactions.
The report noted that concession stand revenue for the period ending Dec. 31, 2011 of $9,385 was documented. However, none of this was substantiated by cash receipts or bank deposit slips. Concession stand disbursements during this same period of $9,490 were documented. But, only $1,511 of those disbursements were substantiated by actual receipts from vendors.
A comparison between the concession stand cash spreadsheet and actual receipts found that two receipts were noted to have been recorded for the wrong amount and one receipt was not recorded at all. Those items are as follows: receipt dated May 9, 2011 for $131.33 recorded for $31.33; receipt dated May 23, 2011 for $57.93 recorded for $37.93 and receipt dated May 26, 201 for $131.27 was not recorded on the spreadsheet at all.
Purchases of supplies for the concession stand were made by Parks Dept. employee Kitty Smith using personal checks and debit cards. Those purchases totaled $1,762. The purchases were then reimbursed from cash in the concession stand cash box.
The report notes that, "according to the City of Benton's general ledger detail, $7,236 was disbursed for invoices pertaining to the concession stand. Of this amount, only the $100 initially supplied as petty cash was recorded on the concession stand spreadsheet."
Cash payments made to umpires and scorekeepers totaling $7,410 were also noted in the report and stated that "Federal law requires IRS form 1099 to be issued to each person who is paid $600 or more during the year. Per review of the concession stand cash spreadsheet, six people were paid over $600 and should have been issued 1099s, including Curtis McCormick, who assisted in operating the concession stand and was paid $1,040."
The final item in the report states, "revenue of $6,445 are estimated to be unaccounted for based upon the following: documented costs of concession stand merchandise from both the concession stand spreadsheet and the general ledger multiplied by an estimated mark-up of 100 percent results in total revenues of $15,830; mark-up was estimated at 100 percent based upon documented concession stand prices compared to costs from suppliers; documented receipts of $9,385 were subtracted from estimated total revenue of $15,830. this leaves $6,445 in unaccounted revenue."
The report from Yoakum, Lovell & Company includes the language, "We were not engaged to, and did not, conduct an audit, the objective of which would be the expression of an opinion on the accounting records. Accordingly, we do not express such an opinion."
A special meeting of the Parks Commission has been called to discuss the report. The meeting is set for Tuesday, April 24 at 6 p.m. in the Gene Moss Building at Tyndall Park.