Serving the High Plains
Serving the High Plains
The City of Tucumcari’s 10-months-late audit for the 2021 fiscal year was publicly released by the state last week, and the city manager “guaranteed” during a city commission work session Thursday the FY2022 audit would be submitted to the state by the usual Dec. 15 deadline.
The work session went over details of the forthcoming FY2022 audit via videoconference with officials from Axiom CPAs and Business Advisors of Albuquerque.
The auditors said they would perform fieldwork at City Hall for about a week starting Nov. 14, then hold an exit interview with city commissioners in early December.
“We’re pushing to get it to (the state auditor’s office) by the 15th” of December, city manager Paula Chacon said, adding she “guaranteed” the city would meet that deadline.
The city had landed on the state auditor office’s “at-risk list” of entities due to the tardiness of their reports.
A spokeswoman with the state auditor’s office several weeks ago cited a 2013 executive order by then-Gov. Susana Martinez stating that entities would not be eligible for the New Mexico Legislature’s capital outlay funds if they did not have annual financial audits in place.
The city was removed from the state’s at-risk list last week.
During a brief interview in her office Thursday after the work session, Chacon said she was not comfortable commenting directly about the FY2021 audit until after she read it and discussed it with commissioners at a future meeting. She said she was unaware the state auditor’s office had released the report.
The FY2021 audit by Axiom contained a total of seven findings, including three that were listed as a “significant deficiency” and three that were repeated or modified findings.
One significant deficiency was a lack of internal controls over EMS accounts receivable. Another was a deficiency in the bank reconciliation process.
Several manager’s responses blamed a shorthanded finance department.
“Our finance department went from a staff of 5 to 3, and currently we are still only a staff of 3,” one response stated.
Another significant deficiency cited the city’s information technology general controls, including the lack of a disaster recovery plan and other security for its data. The city uses Plateau Telecommunications and Tyler systems.
Other findings were the late submission of its annual data collection form, a late audit report, not making timely contributions to retirement healthcare systems and lack of internal controls over receipts and deposits.
According to the state auditor’s website, the city’s audit was released Oct. 26, though a check by the Quay County Sun showed a PDF of the final report wasn’t available on the site until last week.
Chacon said she was working to fill open positions in the finance department. She said only one vacancy remained in that department.
Mesalands Community College remains more than a year late with its FY2021 audit, and it still was on the state auditor’s at-risk list as of Friday. The college should have submitted that audit to the state by Nov. 1, 2021.
Action items
Action taken by commissioners during their regular meeting Thursday:
n They approved resolutions for budget adjustments and a financial report, both for the first quarter of FY2023.
Adjustments included an estimate by Finance Director Rachelle Arias that states the city anticipates $72,596 in tax revenue from recreational marijuana sales during the fiscal year. She said she based that on about $18,000 in taxes collected during the first quarter. Mayor Pro Tem Ralph Moya said though legal marijuana sales are robust, medical cannabis is not taxed.
n They approved a bid recommendation for construction of a new cell at the landfill. Assistant city manager Mark Martinez said the $934,614.26 bid from CBKN Dirtwork of Algodones was below the engineer’s estimate of $1 million. A total of five contractors submitted bids.
n They approved a bid recommendation for Gamble Addition street improvements. Chacon said Pacheco Construction of Tucumcari submitted the only bid of $1.12 million, though several contractors attended a prebid conference.
n They approved a change order of $7,630.57 with File Construction of Albuquerque for the Hoover Tank water project. Martinez said the change order was within budget for the overall project. It includes installing 12-inch pipe, fittings and valves.
n They approved the appointment of new members to the Cemetery Advisory Board: Jenny Martinez, Scott Crotzer, Kathleen Hanny, Toni Owen Wilson and CJ Wiegel.
n They heard an annual report by the Quay County Health Council from officers Brenda Bishop and Joyce Runyan. Bishop said the council landed about $118,000 in grants this year and has 50 active members. She said the council seeks to develop a plan by early 2023 and wants more input from city officials and businesses. Runyan detailed several the council’s activities, including the distribution of lock boxes for prescription drugs, giving free Narcan and training to prevent opioid overdoses and handing out drug disposal bags.
n They heard a financial report from September from Theresa Kester on the Chaparral Apartments. She said “expenses are pretty low,” though she wanted more upgrades to the complex. She said the availability of appliances was a challenge. Kester said the complex had only one vacancy, with 17 on a waiting list. The complex had a $369 operating surplus at the end of the month.
Moya asked Kester to provide year-to-date information on future reports and information about the mortgage to provide a more accurate financial picture.
Manager’s report
Items from Chacon’s regular report to the commission:
n She said she was gathering information on the cost of roof and floor repairs to the Tucumcari Recreation Center. She said the building was sound, and “I don’t believe it will be as bad as we thought.”
n Chacon said the governor should announce later this month whether the city will receive a grant for repairs to the pool. If that bid fails, she said she would pursue other funding possibilities. She said a company in Albuquerque soon will test the pool’s plumbing for other leaks.
n Martinez said the state’s Environment Department was poised to spend $100,000 on an environmental study on the long-closed Tucumcari Truck Terminal on the west side and the Princess Theatre downtown.
Moya said the truck terminal is owned by a trust fund, and he doubted the attorney that manages it would permit the study. Noting the property is nearly $100,000 delinquent on property taxes, Moya said the city should consider acquiring it and show “we’re serious about fixing the west side of town.”
n Chacon said commissioners would hold interviews Nov. 28 for candidates for alternate municipal judge. Jerry Mares was appointed municipal judge last month.
n She said repairs on the city’s fourth ambulance had been completed and was undergoing final checks, but it would be available for emergencies.
n Chacon said a fence for an outdoor kennel at the city dog pound would be finished this week.
n She said an insurance claim for a maintenance building at Tucumcari Memorial Park cemetery was denied, mainly due to the building’s advanced age. She said she was pricing new buildings to replace it.
n Chacon said she was looking at grant possibilities to replace a carport at Wailes Park. The carport was stolen last month.
n She mentioned in a forthcoming report about city-owned tracts that Father’s Forge church wants to end its lease early and buy the property.
n She and several commissioners praised the popularity of several Halloween events. Chacon also praised the “Next Exit” movie premiere at the Odeon Theatre, considering how little time existed to publicize it.
n Chacon said she and several city officials met with U.S. Rep. Teresa Leger Fernandez and her aides Wednesday about possible funding opportunities. City officials mentioned the ongoing wastewater treatment project, street repairs, water system maintenance, and repairs to the recreation center and city pool as the most pressing concerns.
Comments
n In commissioner comments, Moya said water was seeping through the concrete in parts of the Tucumcari Convention Center barely a year after it was renovated.
Chacon said the contractor who removed the carpeting and installed polished concrete at the facility has been contacted about the problem.
Mayor Ruth Ann Litchfield said some of the paint on the floor also had faded. She said it was possible some of the renovations were “rushed” because of a wedding booked there.
n Commissioner Mike Cherry said he would request an executive session with Chacon at a future meeting about personnel matters. He did not elaborate.
n Litchfield said the Princess Theatre Board would hold a meeting at 1 p.m. Nov. 10 at City Hall.