April 19, 2021 - Scottsboro, Alabama - Scottsboro City Council Work Session - Porter Road Rezoning and New Subdivision Proposal - Thomas Albritton, Esq., Executive Director , Alabama Ethics Commission Presentation - UPDATE - April 20, 2021 Council Member Tolliver Audit Request, Specifically Financial Accountability

 

Scottsboro City Hall, photo by G. Morgan

COMPLIANCE vs FORENSIC AUDIT ISSUES

Long term issues within the City of Scottsboro which might warrant a Forensic Audit. 

Council Member Tolliver Video at article end, request for Financial Accountability Audit.

All things related to the Scottsboro City Auditing Issues relating to financial accountability on this blog, 12 years of issues:   https://arklite.blogspot.com/search/label/Scottsboro%20City%20Audit  The issue goes deeper than financial accountability, there have been issues of property accountability/property management - https://arklite.blogspot.com/search/label/property%20management  , theft of funds/cash control - https://arklite.blogspot.com/search/label/cash%20control  , sexual harassment, false allegations creating a hostile work environment - https://arklite.blogspot.com/search/label/cash%20control and inter-related issues documented on this blog and in the local press which might warrant a Forensic Audit. 

Scottsboro, Alabama - City Council Work Session. End of session Thomas Albritton, Esq., Executive Director, Alabama Ethics Commission made presentation (special video). Agenda topics of note: New First Monday Ordinance discussed; audit issue was brought forward once again (special video); rezoning of property on Porter Road for new homes; part time temporary City clerk to be considered; resolution regarding state law and small wireless facilities; Mayor mentions road closures for purpose of resurfacing. Full Agenda, videos and photographs below, with information on Porter Road re-zoning issue and home development project; video of Thomas Albritton, Executive Director Alabama Ethics Commission.

AGENDA

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Porter Road Rezoning Project and Home Development Presentation

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Map

Proposed Home Examples

MEETING VIDEO 

Thomas Albritton, Esq., Executive Director , Alabama Ethics Commission Presentation

         PHOTOGRAPHS RELATED TO AGENDA ISSUES 

Scottsboro Mayor Jim McCamy explains road resurfacing project. 

(photo by G. Morgan) 

City Council President and City Clerk Whitney Phillips discuss hire of temporary part time assistant clerk to fill in while Mrs. Phillips will be absent on Maternity Leave. 

(photo by G. Morgan)

Scottsboro City Attorney Steve Kennamer discusses Resolution regarding Alabama Act 2021-5 regarding Small Wireless Facilities. (photo by G. Morgan)

UPDATE -APRIL 20, 2021 - COMPLIANCE vs FORENSIC AUDIT ISSUE, FINANCIAL ACCOUNTABILITY

Council Member Nita Tolliver brings forth issue of needing second audit. Issue of Compliance audit vs Forensic audit. Council Member Tolliver requests specifically an audit related to financial accountability. Ms. Tolliver volunteers her council member pay to pay for the audit.

March 1, 2021 - Scottsboro, Alabama - Scottsboro City Council Work Session - Agenda, Video, Audit Information -The Scottsboro "State Audit" Affair - Confusion of City Council Member Regarding Audit of City of Scottsboro - UPDATE - March 2, 2021 Regarding Audit Types and 3 Months of Audit Issues

 

Scottsboro City Hall, photo by G. Morgan

(Updates March 2, 2021 - The Scottsboro "State Audit Affair" with video, and more audit info, with links.)

AGENDA

Item 9 on Agenda - Information on Audits

Types of Audits (The International Standards for the Professional Practice of Internal Auditing​.) 

• Operational Audits - Examine the use of unit resources to evaluate whether those resources are being used in the most effective and efficient manner to fulfill the University’s mission and objectives. An operational audit may include elements of the other audit types listed below.
• Financial Audits - Focus on accounting and reporting of financial transactions, including commitments, authorizations, and receipt and disbursement of funds. The purpose of this type of audit is to verify that there are sufficient controls over cash and cash-like assets, and that there are adequate process controls over the acquisition and use of resources. Unlike external financial audits, internal financial audits do not prepare or express professional opinions on the fairness of the presentation of financial statements.
• Compliance Audits - Review adherence to laws, regulations, policies, and procedures. Examples include federal and state law, policies, and directives. Recommendations typically call for improvements in processes and controls intended to ensure compliance with regulations.
• Information Systems (IS) Audits - Examine the internal control environment of automated information processing systems and how people use those systems. IS audits typically evaluate system input, output, and processing controls; backup and recovery plan; system security; and computer facility reviews. IS auditing projects can focus on existing systems, as well as systems in the development stage.
• Internal Control Reviews - Focus on the components of the university and auxiliary organization major business activities. Areas such as payroll and benefits, cash handling, inventory and equipment and their physical security, grants and contracts, and financial reporting are usually subject to review.
• Investigations - Seek to establish evidence of impropriety; imply a systematic track-down of information the auditor hopes to discover or needs to know. Investigations include alleged instances of fraud, waste and abuse, and improper governmental activities. 
• General Info Link: https://www2.calstate.edu/csu-system/administration/audit-and-advisory-services/Pages/types-of-audits-and-standards.aspx 
  Auditing Info from Cal State Fair Use for non-profit news reporting, education and commentary. 

      Internal vs. Compliance Audit

Internal audits are carried out by employees of an organization to gauge overall risks to compliance and security and to determine whether internal guidelines are being followed. Internal audits occur throughout the fiscal year and reports can be used by management teams to identify areas that require improvement. Internal audits measure company objectives against output and strategic risks.

External audits are formal compliance audits that are carried out by independent third parties and follow a specific format that is determined based on the compliance regulation being assessed. External audit reports measure if an organization is complying with state, federal or organization regulations, rules and standards.

An auditor's report is used by regulators to assess possible fines for noncompliance, or to prove regulatory compliance. 

     Compliance Audit Procedures

External audits begin with a meeting between organization/department representatives and compliance auditors to outline compliance checklists, guidelines and the scope of the audit. The auditor conducts reviews of employee performance, studies internal controls, assesses documents and checks for compliance in individual departments. 

Auditors review compliance processes as a whole and create a final audit report. Compliance auditors provide details to leadership about the organization's level of compliance adherence, any violations and suggestions for improvement. The audit report is eventually released publicly.

     Importance of Compliance Auditing

Compliance auditing, either internal or external, can help identify weaknesses in regulatory compliance processes and create paths for improvement. In some cases, guidance provided by a compliance audit can help reduce risk, while also avoiding potential legal trouble as a result of non-compliance.

 Compliance auditing provides an outline of internal organizational processes that can be changed or improved as regulations and requirements change.

Fair use information for non-profit news reporting, education and commentary from Tech Target - Compliance Auditing - Link: https://searchcompliance.techtarget.com/definition/compliance-audit

Three Standards 1) Governance, 2) Risk Management, 3) Controls - Please refer to the links above from Cal State and Tech Target for more specifics.

Link to Rules: https://examiners.alabama.gov/PDF/rules.pdf

Audits of Municipalities

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Scottsboro Audit Issues on this Blog:   https://arklite.blogspot.com/search/label/Scottsboro%20City%20Audit

VIDEO

Audit Video, 32 minutes, Scottsboro "State Audit" Affair 

Scottsboro, Alabama - December 14, 2020 - City Council Work Session and Regular Session Meeting - Agendas and Video - Jackson County Commission Meeting Facebook Live Video

 

Scottsboro City Hall, photo by G. Morgan

Place 2 City Council Member Nita Tolliver (City of Scottsboro photo), Fair Use for non-profit news reporting and commentary. 

Place 2 City Council Member Nita Tolliver requested a State of Alabama Audit of the City of Scottsboro's finances and fund distributions. Council President Bailey stated the issue would be placed on the next work session agenda which is Monday, December 21, 2020.

AGENDAS

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Regular Session

Regular Session

VIDEO

                 JACKSON COUNTY COMMISSION 

Jackson County Courthouse, North Entrance, (photo by G. Morgan)

Jackson County Commission Live Facebook video link:   https://www.facebook.com/JCCommissionAL/videos/208589577437079