DIFFERENCE OF OPINION
Manager, candidate disagree on city's checks and balances
By Lori Mellinger Bullard Banner News

At Thursday's Bullard City Council meeting council candidate Gerald Jessup made the first public comment regarding a civil suit concerning Patty Cooper.

Cooper - who admitted to stealing money from the city while she served as Bullard's city secretary - was sentenced to pay some restitution, fines and was given 10 years deferred adjudication for her crimes.

But Mayor Pro-Tem A.W. Hines - after Cooper's sentencing - said the city might still pursue civil charges against Cooper.

"The city council will look into a civil suit to recover more of the money we believe Patty Cooper owes Bullard," Hines said. "We're asking the citizens now to speak up and let us - as their representatives - know what they want."

Jessup told the council - in open forum - that pursuing civil charges would be - in his opinion - a waste of time and money.

"You're looking at the law of diminishing return," Jessup said. "And while the city might win, there's no guarantee she'll pay the money."

Instead Jessup suggested the city's checks and balances needed to be tightened.

"What the city needs to do instead of pursuing more charges against Cooper, Cooper, the staff needs to focus on following the recommendations of Bailes & Co.," he said.

Bailes & Co. was the firm that performed the forensic audit following Cooper's indictment. The city asked for - and received - recommendations to follow to strengthen the internal checks and balances.

In an interview following the council meeting, City Manager Larry Morgan produced both the letter and recommendations of the auditor.

The documents, written by CPA Michael Thomas and dated June 6, 2005 stated:

The City of Bullard has requested that we perform an internal control review related to cash collections and provide a written report of recommendations for improving the internal controls over cash collections. Our internal control review procedures will include - but are not limited to: examinations of books and records; voluntary interviews of appropriate personnel; and other such evidence-gathering procedures as necessary under the circumstances. Any reports or documents prepared for this engagement are to be used for the purpose of improving the City of Bullard's internal controls.

The internal control structure is part of the organization's infrastructure, therefore the attitude of the organization's infrastructure, therefore the attitude of the organization is as important as the actual control procedures. An internal control structure will not provide 100 percent assurance that there will be no errors or irregularities in the entity's operations. However, if properly structured, it will provide reasonable assurance in the entity's ability to record, process, summarize and report financial data consistent with the assertions of management in the entity's financial statements.

Below are our recommendations for strengthening the overall internal control system at the City of Bullard:

1. Form an audit committee.

2. Adopt vacation policy.

3. Develop Policy and Procedure Manual for all departments.

4. Centralized Cashier and Segregation of Cash Duties.

5. Mail Opening Procedures

6. Policy Regarding Daily Deposits

7. Control Access to Adjust Billing Records.

8. Consider Credit Card and Online Payment Receipts.

"I'm not sure which checks and balances Mr. Jessup believes we aren't following," Morgan said. "But under the direction of the council, the city has implemented everything the firm suggested.

"We've also instituted at knowledgeable staff who is also eager to work with the public and serve citizen's needs."

And Morgan said no one is resting on the status quo.

"It's my professional opinion that this city is operating according to each and every guideline established - and even above and beyond it," he said. "With an eye to the future, we're servicing the needs and protecting the interests of the citizens.

"The council's goal in hiring me was to implement these changes, and with their help and a cooperative staff, we've done just that."