Questions continue regarding city spending practices in advance of this year’s audit, which is expected to be presented to City Council later this month or in early December.
At the Oct. 27 council meeting during public comment, resident Lori Mahler expressed concerns.
Mahler said she read ‘All is not right in the city, so sayeth the mayor? in the Sept. 24 edition of The Clarkston News, and also found an article in February 2013 about auditors recommending more oversight of the way the city spends money.
Councilman Tom Hunter, serving as mayor pro-term, said funds spent without being budgeted first is ‘not proper? and the city is correcting the problem.
The past September, Mayor Joe Luginski said the city was informed by the city auditor, the way funds were spent before they were budgeted was incorrect.
Recent examples include approving a street paving and bridge project before budgeting for it. Luginski insisted the mistakes were not intentional.
In 2012, an audit conducted by auditing firm PSLZ LLP, CPA, noted similar issues.
Auditors called for more oversight, citing Public Act 2 of 1968, which states, ‘a local unit shall not incur expenditures in excess of the amount appropriated in budget resolutions of the governing body.?
Recently elected councilman Richard Bisio said the way council spent money before being budgeted in 2012 was not only poor financial management, but did not meet state budgeting laws.
In September, City Manager Carol Eberhardt said city staff will work harder to ensure the accounting of various city business are done before meetings.
On Oct. 27, however, she said the city never officially spends ‘one dime? without the money first being budgeted correctly.