Journal-Times (Grayson, KY)

Local News

February 27, 2013

Olive Hill audit highlights budget, utility fund issues

Feb. 27, 2013 — An auditor from Kelley Galloway & Company was on hand at last Tuesday's Olive Hill Council meeting to present the audit findings for the 2011-2012 fiscal year.

Lori F. Dearfield, the CPA who performed the audit, outlined several issues and discrepancies found in her examination and presented recommendations for the Council to consider in order to rectify the errors.

Chief among the errors was that the city's expenditures exceeded the amounts that were appropriated in the budget for the fiscal year and that the budget had not been amended to reflect these changes, both of which are required by state law.

The firm recommended that the city implement “a strict monitoring process whereby the budget versus actual financial results are amended on a timely basis” to prevent such an occurrence from happening in the future.

Also, the firm found that customer deposits from the utility sub-ledger had not been properly reconciled with the city's general ledger for the utility fund, meaning approximately $3,567 in customer deposit funds were unaccounted for during the last fiscal year.

The firm recommended that the city “reconcile the customer deposit general ledger account to the utility bill sub-ledger to ensure proper balances are recorded” to correct this error.

Dearfield also noted that, even though the utility cashier change drawers are counted down every day, there currently exists no log to document any shortages or overages that are found.

She recommended that adjustments to the general ledger be made when a discrepancy is found in a utility cashier's drawer.

The firm also stated that “payroll time cards often lack documentation to show they were properly received and reviewed” and recommended that adequate controls be put in place to ensure that time cards receive the proper review and approval.

Dearfield was quick to point out that the budget overages, undocumented customer deposit funds, and cash drawer issues all fall within acceptable limits for audit guidelines, calling the discrepancies “immaterial” when pressed by Council member Glenn Meade on the importance of such items.

All of Olive Hill's fund accounts are audited by an external auditor party on a yearly basis as required under Kentucky law.

Joe Lewis can be reached at or by telephone at 286-4201.

Text Only
Local News
  • 16 indicted by Carter grand jury

    Indictments of 16 persons have been handed down by a Carter County grand jury. Although 11 of those were processed June 27, the documents were released Monday to the Journal-Times.

    July 23, 2014

  • Wreck4.JPG Wreck leaves trail of gravel

    Members of Carter County Emergency Management, Norton Branch Fire Department, Kentucky State Police
    and Carter County EMS responded to an overturned truck Monday afternoon.

    July 23, 2014 1 Photo

  • Rex Collins.JPG Package liquor sales begin in Grayson

    It took more than a year, an investment of about $750,000, and a lot of paperwork but packaged liquor went on sale last Thursday in Grayson.

    July 23, 2014 1 Photo

  • Star Elementary renovation underway

    Ongoing renovation of Star Elementary School was one of the main topics of conversation at Monday night’s meeting of the Carter County Board of Education.

    July 23, 2014

  • Standout Youth Rally

    The third annual Standout Youth Rally will take place this weekend at the Olive Hill Shrine Park. The Christian praise and worship experience is free and includes admission, food, camping and entertainment.

    July 23, 2014

  • Stage lighting welcome at renovated OHHS

    Performers at the Olive Hill Arts and Education Center, previously known as Olive Hill High School, eventually will be highly visible to their audiences in the future, thanks to help from the Carter County Community Fund (CCCF).

    July 23, 2014

  • Olive Hill fire chief to step down

    Olive Hill Fire Chief Wes Gilliam has informed the Journal-Times that he will resign from his position effective July 31.

    July 23, 2014

  • DSC_9807.JPG Beer on sale in Olive Hill

    Malt beverage sales began in Olive Hill last Wednesday.

    July 23, 2014 1 Photo

  • store.jpg Packaged liquor sales begin this week

    July 16, 2014 1 Photo

  • DSC_7242.jpg Rodeo rides again at Carter County Fair

    After three years with no rodeo, the bucking broncos will return to the Carter County Fair this Thursday and Friday.

    July 16, 2014 1 Photo