All in all the City of Kingman's books are in order and its fiscal condition is sound. That's the main message that an auditor delivered during the July 19 city council meeting.
Steve Palmer is an auditing partner with Hinton Burdick, the firm hired to conduct annual audits after the city fired its former auditing firm for failing to detect alleged embezzlement by former budget analyst Diane Richards. Palmer said his firm's audit identified structural deficiencies that allowed the fraudulent activity to go undetected.
``We did have two findings that we deemed to be significant enough that they rose to the level of being a material weakness, the first being the lack of segregation of duties which resulted in the misappropriation of city assets," Palmer said. ``I know that you're all very well aware of that so I don't think we need to spend much time on that."
Council members, however, asked Palmer if the city has taken adequate steps to prevent future fraud in the finance arena. Palmer identified pages of the audit that detailed protective measures initiated by staff.
``They've been very proactive in addressing these items and taking corrective action," Palmer said. ``I'm reasonably confident that any discrepancies in cash would be identified. The city has implemented sufficient controls over cash so that it would be very difficult for that situation that you had to recur."