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<br />City ofCenterviIIe <br />July 24, 2002 <br />Council Meeting Minutes <br /> <br />Ms. Paulseth indicated she had spoken to Council Member Capra earlier today has no <br />problem with doing an internal audit of a couple of projects. She also commented that <br />the City Clerk agreed there could be some problems. <br /> <br />Couucil Member Capra said she is not sure there are any issues but would like to do a <br />spot check. <br /> <br />Ms. Paulseth indicated that this type of project accouuting is outside of the normal scope <br />of what the normal auditing process would be. <br /> <br />Council Member Capra indicated she is aware that there are a wide variety of audits that <br />are done. <br /> <br />Ms. Paulseth indicated that the audits do not typicaJly include accounting work and the <br />audit team has been doing a significant amouut of accouuting work and billing it back to <br />the City. <br /> <br />Council Member Capra indicated that the audit costs are around $20,000. <br /> <br />Couucil Member Capra indicated she would like a spot check to see if those two accouuts <br />were incorrectly billed or not billed to see if there is a bigger problem than they are aware <br />of. <br /> <br />Couucil Member Broussard Vickers indicated that any projects commercial or residential <br />could be reviewed as the City K'110WS there were accouuting problems so it would not be <br />unreasonable to assume it may have happened in other projects. <br /> <br />Ms. Paulseth indicated that the projects referred to by Council Member Capra are still on <br />the books of the City. She then said that there was not a capital projects fund opened on <br />them and she assumes the activity happened in the general fund. <br /> <br />Mayor Swedberg commented that developers in this City are surprised and the thing that <br />he is most worried about is that there is a process that exists that allows almost $300,000 <br />to slip through the cracks. He then said he is looking for some certainty that the current <br />process would not allow this to happen again. He further said he has zero confidence in <br />the auditor because the auditor has repeatedly told the City during two audits that these <br />were just overages and there is not a member on this Council that would be able to know <br />that was any different. He also said he is fairly miffed at the auditor that $300,000 could <br />fall through the cracks. He then said he applauds Ms. Paulseth for finding this. <br /> <br />Council Member Broussard Vickers indicated these were procedural things that were <br />done where the money was not accouuted for in certain areas and the auditor is not <br />looking for that. <br /> <br />Page 6 of22 <br />