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City takes corrective action following audit

Department identified errors dating to 2012


During the recently completed fiscal year audits for the city of Madras, the finance department identified and fixed accounting errors that dated back to 2012.

"We proactively made the corrections and put a corrective action plan in place," said Gus Burril, city administrator.

Brandie McNamee, the new city finance director, said that her department found that the city and the Madras Redevelopment Commission had spent more money than they were allowed in certain categories for the fiscal years ending June 30, 2012, and June 30, 2013.

"While the spending did go towards the intended purposes for which they were authorized, the categories within the individual funds did not match with the category it was originally budgeted for," explained McNamee, who started work for the city in late January.

"For example, the MRC had budgeted for disbursements through a fund category called 'Capital Outlay,'" she said. "However, the actual spending of this appropriation was done so as 'Special Payments.'"

Even though the expenditure followed governmental accounting law, she said it did not meet the Capital Asset Policy.

McNamee brought the oversight to the attention of the auditor in order to maintain compliance with state budget law.

"As a result of such findings, the City Finance Department is in the process of drafting fiscal policies and procedures to ensure proper internal controls going forward," she said.

On March 25, the Madras City Council approved a resolution to improve the controls and develop a corrective action plan.

"The audits were challenging to get through, however it is better that management found the errors and we are making every effort to ensure internal controls are implemented and corrective actions are carried out," said McNamee.




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