1328 Audit

CITY OF ELGIN, OREGON RESOLUTION 1328 (2014)

A RESOLUTION Required by ORS 297.466 setting forth the City of Elgin plan for corrective measures with regard the legal violations and estimated time to complete.  

WHEREAS:  The City of Elgin Secretary of State Audit Review for the period July 1, 2012 through June 30, 2013, in accordance with provisions of ORS 297.465(3) disclosed the following:

1.      Over-expended appropriations in violation of Local Budget Law (ORS 294.456)

2.     2. Instances of noncompliance with the legal requirements pertaining to the awarding of public contracts and the construction of public improvements (ORS Chapter 279)

WHEREAS:  The City of Elgin is required by law to develop a plan to correct the legal deficiencies disclosed in the audit report and provide a copy of the resolution required (ORS 297.466) establishing the planned corrective actions and the estimated time of completion.

WHEREAS:  The following corrective actions have occurred or are planned:

1. To correct the issue related to over-expenditure:

        a. Alignment of the budgeted allocations with the financial management system has taken place in development of the 2014/2015 fiscal year budget.

        b. Monthly Treasures Report and Position Statement are provided to the Council.

        c. The Position Statement provided in detail form allows for direct comparisons of budgeted allocations to actual.

    2. To correct the issue of bidding violations:

        a. Resolution 1292, City of Elgin, was redistributed to city leadership on May 28, 2014.

        b. The City Administrators position was vacant from September 16, 2013 through November 25, 2013.  During this period two (2) purchases took place without proper bid process.

            i. Management of the Opera House is volunteer staff and did not understand the process or impact.

            ii. Leadership of the volunteer ambulance service also did not understand the need to document the bid process.

            iii. Both of these groups have been informed of the bid process necessity and scope.

        c. In May 2014, one (1) purchase of $8900.00 was made with three (3) price comparisons, the purchase was approved by the Council, however the cost comparison was not done in council, but by the City Administrator and Public Works Supervisor.  The new City Administrator was not aware of the bid/approve process at that point in time.

NOW THEREFORE BE IT RESOLVED THAT: The City of Elgin will authorize and approve the approve corrections and authorize a copy of the resolution be provided as required.

PASSED AND ADOPTED this 9TH day of June 2014.