A 17-page report by Tybee Island’s finance director, Angela Hudson, outlines a series of accounting errors going back to 2008.
In the report, Hudson also makes recommendations for correcting the errors regarding the improper transfer of special purpose local option sales tax funds.
Click here to read Tybee's review of audited transactions
The recommendations include reversing a number of transfers between the SPLOST fund and the general fund that took place during the 2008, 2009, 2010 and 2011 budget years.
In total, it looks like about $640,000 may need to be transferred from the general fund to the SPLOST fund, said Councilman Jan Fox, who compiled a summary of the transfers for tonight’s city council meeting.
Fox said that there appears to be enough in the fund balance to cover the transfers and maintain the city’s policy of having at least three months of reserve funds for emergencies.
Still, she said that she was surprised at the number of accounting mistakes that were discovered by Hudson and Steven Garber, a private accountant the city hired to help complete last year’s audit report.
“A lot of that just makes no sense,” she said.
A less detailed two-page report issued last month by Garber mentioned the SPLOST transfers, as well as more than 40 audit adjustments that were made for the 2010, 2011 and 2012 fiscal years — some of which were not posted to the city’s books.
Despite the findings, Garber described Tybee’s financial position as “very healthy,” with a $4.5 million balance that equates to about 46 percent of this year’s budgeted expenses. A fund balance of 25 percent is generally considered healthy, he said.
Tybee’s audit committee questioned Hudson and Garber about the findings Wednesday afternoon, with some members saying the errors were “embarrassing” for the city. Others said they were concerned the problems would occur again.
Hudson said some of her department’s employees lacked the accounting skills that would have prevented the errors from being made when she started working for the city in the fall. She said she would be training those employees and putting safeguards in place to make sure the mistakes are not repeated.
Garber is scheduled to discuss his findings during a special called meeting this afternoon, ahead of the regular city council meeting.
IF YOU GO
What: Special called Tybee City Council meeting. Accountant Steven Garber is scheduled to discuss his findings after a recent review of Tybee’s finances.
Where: Tybee City Hall Auditorium, 403 Butler Ave.
When: 3 p.m. (The regular meeting will begin at 6:30 p.m.)