Pike County dropped by auditing firm contracted to conduct 2021, 2022 audits
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By DAVID CAMPHOUSE
The Pike County government’s ongoing financial issues continue to get more complicated.
In the most recent development, the county’s auditing firm has determined that it will not conduct the 2021 financial audit.
Because the 2021 audit was not conducted on time, Pike County has been placed on the state’s “Do Not Pay” list, meaning the county cannot receive payments from certain government agencies/departments.
According to County Board President Jim Sheppard, the Wipfli agency has reneged on both the 2022 and 2021 audits.
“Two weeks ago they backed out of the 2022 audit,” Sheppard said. “Last Wednesday, they backed out of the 2021 audit.”
Sheppard said that the county’s unpreparedness to conduct an audit allowed the firm to back out of its contract.
“There’s a clause that says if we’re not ready with the information that they need when they’re ready, then they can back out,” Sheppard said.
Sheppard indicated that he was in the process of contacting another firm to conduct the county’s audit.
“You don’t need to bid out auditing services, so I’ve reached out to our former auditor, Zumbahlen, Eyth, Surratt, Foote & Flynn,” Sheppard said. “I’ve left two messages and haven’t heard back.”
Zumbahlen, Eyth, Surratt, Foote & Flynn, Ltd. is located in Jacksonville.
According to Sheppard, the county department most at risk of being affected from being placed on the state’s “Do Not Pay” list is the Pike County Health Department (PCHD).
“Over 50 percent of their $1.5 million budget is grants,” Sheppard said. “They’re the most affected by all this.”
Sheppard said he had been in touch with PCHD Chief Financial Officer Kim Ator about the situation, and, according to Ator, effects of the placement on the “Do No Pay” list had not yet been felt. However, department employees are concerned by the financial uncertainty.
“Kim said so far they hadn’t felt anything,” Sheppard said. “They’ve had to reassure employees that they won’t be furloughed.”
In the short term, Sheppard said that he intends to use COVID-19 related American Rescue Plan Act (ARPA) funds to make up any budgetary shortfalls resulting from being placed on the state’s “Do Not Pay” list.
The county is in the midst of the budgeting process for the next fiscal year. Sheppard said he is still awaiting budgets to be submitted for approval from most department heads.
“I haven’t received budgets from most offices yet,” Sheppard said. “They’ll get them turned in or I’ll prepare a budget, and they can live within my means.”
