The trio of Selma City Council members who are not running for re-election, Nancy Sewell, Rita Sims-Franklin and Glenn Sexton, sent a letter to state officials asking them to come and audit the city’s financial records of the last three years.

The letter, addressed to State Auditor Beth Chapman and attached to Chief Examiner Ronald L. Jones, is a formal, written request to the state to conduct a financial audit of the records and documents of the City of Selma.

“This request comes as consequence of financial irregularities, inconsistencies, delays, and chronic budget violations reported to us as elected members of the Selma City Council,” the letter states. “The continued reports of conflicting financial data have diminished our confidence in the accuracy and validity of the administration’s financial reports to the point of grave concern.”

Selma Mayor James Perkins Jr. had a simple response.

“The public should consider the source,” he said.

Chapman responded quickly, explaining Selma’s finances are not within her jurisdiction.

“We do not have the ability, my office only has legal jurisdiction over state offices,” she said.

Chapman referred the council members to Jones’ office.

Jones said he would give his answer later this week.

“I just saw the letter this morning,” he said. “I really haven’t formulated an answer.”

Jones added that budget and personnel cuts to his department might affect his decision as well.

The letter said that time is of the essence.

“The quality and timeliness of these reports is critical to our being able to represent the citizens of Selma in the City Council,” it reads.

After months of delays due to various problems including new procedures and massive turnover in the finance department, the fiscal year 2002-2003 budget’s full audit still has not been delivered to the council.

Last week, however, the council did get a preliminary audit report from City Auditor Bill Long of Caston, Long and Company.

According to the report, the city’s general fund was $1,625,718 over budget last year.

However, that fund is just one of 35 funds in the city’s budget.

When all of the city’s bond issues are factored in, the deficit is reduced to $878,503.

When all the city’s holdings are consolidated, the city’s total change in assets is $551,000.

“The $550,000 is the real number,” Long said at the meeting. ‘The $550,000 deficit is the number you should pay attention to.”

Franklin said the $1.6 million overage in the general fund is the relevant number.

“I’m not talking about bond fund (money), I’m talking about $1,625,000… I don’t throw those others in,” she said. “I’m looking at money in, money out. When the accountants came they said a million dollars (in the) red and I was hoping they were right and it was no more than that. But I was figuring a million five (in the red). When I saw that million six it made me cringe.”

Long stressed that it is impossible to look at one line of the audit report and get a accurate portrayal of the city’s financial situation.

“Remember I kept saying don’t go to that one fund and that’s what people are going to try and do.” Long said. “Don’t go to that one fund and deal with that $1.6 (million).

Because that was just one fund you have 35 funds in the city, you have to add and subtract.

That’s what we meant by consolidation.”

Franklin said the bond money should be considered separately.

“I do not consider bond money as operating money because that’s not what you operate on,” she said. “That’s what you buy a fire truck out of, that’s what you fix stuff with, infrastructure. What I’m looking at is day-to-day operation, paying the lights, paying the telephone, payroll, payroll taxes and insurance just like what you pay to operate your house.”

Long’s report also included a laundry list of problems his office encountered in compiling the audit.

They included:

Bank reconciliations for several accounts were not reconciled during the year.

“Preparation of monthly bank reconciliations in a timely manner is a fundamental step in assuring the City has accurate accounting records,” the report states.

Cash receipts were not always deposited on a timely basis.

It was noted that several cash receipts were accumulated for 3-4 weeks prior to being deposited in the bank.

During the year, bank reconciliations that were prepared appeared to be generally incomplete and indicate no signs of management review.

Current City Treasurer Cynthia Mitchell was not on the job, or involved with any of the problems cited in Long’s report.