Oak Point receives 2007-08 audit report
By LAURA CHILDRESS

While an internal investigation into accounting irregularities involving two former city employees continues, the Oak Point City Council accepted its 2007-08 audit during Monday night’s meeting.

Auditor Tom Gregg with Gregg and Company noted that despite the rollercoaster ride during the auditing process, no major changes were needed in the city’s accounting controls. Gregg recommended the wastewater funds be kept in a separate account and a double filing system, in which both computer and paper records were kept, be eliminated.

As for auditing standards, Gregg said the accounting practices established by the city were fine, but the books needed to be cleaned up better before the annual audit was begun. He suggested than an independent CPA be hired for that purpose.

Of chief concern, Gregg said, were the limited unrestricted funds.

“While you had $82,000 in the general fund, you only had $42,000 in unrestricted funds, giving you only seven days of reserves,” he said. “That’s not good. Typically you want 120 days. You’ve got to build your reserves up.” Oak Point CPA Carol Roberts noted that the $327,000 listed in the audit under capital projects, however, may not have all been designated funds and, therefore, could be used elsewhere. Specifically at issue are funds from developers, which, outside of park dedication fees, might be available for other uses. She noted that staff will need to research the development agreements to determine if funds are indeed restricted.

Roberts also presented a monthly financial report to the council, noting that while she was unsure whether the city could add to its reserves by the end of the fiscal year, she felt the city had sufficient funds for operations through September.

“We haven’t overspent, our income just hasn’t been as much,” Roberts said.

“We’ve been very frugal,” she added. “All the departments have watched their spending and expenses are down.” With the new Oak Point Elementary slated to open this fall, the council awarded a contract, through an interlocal agreement with Denton County, to Calvert Paving for construction of a right-hand turn lane on Shahan Prairie north onto FM 720. The project is expected to be completed by school’s start.

The council also recommended contacting the Texas Department of Transportation about reducing the speed limit on FM 720 near the intersection of Shahan Prairie with the new school opening this fall.

“Our kids are in danger,” Councilwoman Judith Camp said. “TxDOT needs to help us out.” In other business during Monday’s meeting, the council: * Approved an interlocal agreement with Denton County for tax collection in 2009.

* Canvassed the returns of the June 21 runoff election, in which Colleen Cameron received 182 votes to Leslie Maynard’s 153. Cameron will be sworn in at the next council meeting.