CPA highlights Norwood’s struggles with retaining a full-time finance officer – The Stanly News & Press

Ken Anderson, a CPA from Anderson, Smith and Wike in Rockingham, instructed the Norwood City Council throughout a particular referred to as assembly Thursday that there have been a number of points he discovered with the audit of the city’s 2021 monetary statements, together with expenditures exceeding licensed appropriations and failing to have accounts audited on time.

A lot of the points he attributed to the city’s lack of ability to retain a finance officer. Anderson estimated that over the previous three years, round 5 officers have come and gone, making it arduous for Norwood to have any consistency on the subject of correct governmental accounting.

A part of the issue has been Norwood has not been paying sufficient for the place, Anderson mentioned.

The common wage for finance officers working in municipalities with a inhabitants of round 2,500 or much less is about $61,000, but Norwood has been paying its officers about $40,000. It was not talked about why so many finance officers have left the city inside such a brief time period.

After one of many city’s earlier finance officers left, Anderson mentioned he was requested if he knew of somebody who might take over. He did have a candidate, however this particular person had been beforehand paid $65,000 and when he instructed the person what Norwood’s typical wage was like, “that was the tip of that dialog,” he mentioned.

“I feel you’re going to should pay extra money to search out somebody who’s actually certified and might actually do the job,” Anderson mentioned.

Norwood’s present finance officer, Sarah Richards, commutes to the city and works part-time. She is anticipated to depart someday this summer time.

For the fiscal 2021-22 funds, the city allotted $699,060 for basic authorities however ended up spending $43,396 extra. Expenditures additionally exceeded licensed appropriations within the city’s tradition and recreation division by $37,499.

Anderson mentioned Norwood was discovered to be in noncompliance with a number of state statutes, which he mentioned was due largely to the city not having the ability to retain finance officers. Norwood was purported to have its audit accomplished by Oct. 31, 2021, however the city didn’t meet that requirement, and because of this the audit was not accomplished till March. Additionally, the city’s LGC-203 Money and Investments report was due by July 31, 2021, however Norwood didn’t file the report till November.

The city marketed the job opening for a brand new finance officer by the North Carolina League of Municipalities, The Stanly Information & Press and the employment web site Certainly in January, however has obtained little response.

“The issue that you just’re having is just not unusual,” Anderson instructed the council, although he had not seen a municipality undergo from fairly as a lot turnover as Norwood has had in such a short while.

“We’re not searching for heat our bodies anymore, we want a certified applicant,” Mayor Linda Campbell mentioned.

Anderson talked about a CPA from Monroe or Charlotte might come to the city for just a few days per week, however that may be a brief answer. The city might additionally rent an outdoor CPA agency to substitute as a finance officer, however that may be actually costly, he mentioned.

Anderson additionally introduced up the city rejoining the The Centralina Council of Governments (CCOG), which might assist it discover a long-term answer. Campbell mentioned the city left the group as a result of it all the time appeared extra targeted on serving to larger municipalities like Charlotte.

“Each single time we referred to as and wanted their assist, they didn’t have time for us,” Campbell mentioned.

Councilman Wes Hartsell introduced up the concept of hiring an accounting scholar recent out of college at Pfeiffer or UNC Charlotte who might begin their profession in Norwood.

For a teen who had simply graduated, $50,000 might be a pleasant draw, however it might possible not attraction to a extra skilled CPA.

“It will be superb if we discovered a pointy younger person who was cell and perhaps out of college and wished to maneuver to a lake neighborhood and stay in a small city,” City Administrator Scott Howard mentioned.

Although workers turnover has been an issue, Anderson mentioned, financially talking, the city was in “fairly good condition.”