The city of Blue Ridge audit has been reviewed by Welch, Walker & Associates and they found no issues or changes needed to be made in the report. This information is summed up from December 31, 2017. The audit was finished in June of 2018 and has been approved with no changes.
The auditors are looking at items like capital projects, funding, big downtown projects, and new water rates. The auditors judge the financial reports based on a three-tier system: the highest level is 3) Material Weakness (most serious issues), 2) Significant Deficiencies and the lowest level is 1) Management Comments—these aren’t even shared in the report as they are minute.
Findings found in the Blue Ridge financial report that are tested. There were three Significant Deficiencies findings within the Blue Ridge audit.
2015-01: “Lack of segregation of duties” and this is a very common finding in a ‘small-town’ community. This just means that there’s only one person working in a position where mistakes can be made and there’s no additional person to go back and check over reports, data entry, etc.
2015-02: “Lack of contract for revenue transactions” a few years ago it was spotted that the franchise tax agreement between the tri-state EMC and the city of Blue Ridge is outdated and it’s not been renewed officially on paper. There are a few things that need to be updated within the contract and it needs to be signed by Tri-State EMC. This has been addressed and is something the city of Blue Ridge has been working on.
2017-01: “Rates were not calculating properly in the software” this is a new finding but has already been addressed and fixed. For the new water bills in 2017, the rates were not calculating correctly in the software but was fixed in May of 2018 while they were going over the audit. Since the amount of money was ‘material’ it needed to go in the report. The ‘material’ amount was 32,110.00 from 2017 and 12,850.00 from January-May of 2018.
The 2017-01 error was the city’s software error and will not be charged to the citizens of Blue Ridge.