Jun 10, 2002 By Patty Shultz 3 min read

CONNELLSVILLE – City officials are seeking outside firms to identify the whereabouts of expenditures from 2000 that were not accounted for in the previous audit. “We want more than one bidder,” said Councilwoman Judy Keller of council’s recent decision to reject a bid for the service by city auditor Kisiel and Associates.

Kisiel submitted a bid of $2,500 plus any out-of-pocket costs to re-examine the city financial ledgers and documentation to determine why the end-of-year report indicated $48,698 in expenditures, but lacked an accounting paper trail.

Kisiel earlier informed council that the scope of the audit, for which the firm is contracted, does not include identifying the location of the “missing funds.”

The Connellsville-based firm was the lone bidder for the service.

“What we have concluded is that since we have verified that all the information that flowed through the bank is properly accounted for, we’ve determined this as a reporting issue,” said Bryan Kisiel, following the release of the 2000 audit. “Somewhere between posting that detailed information and then generating it in a summary form, information got lost in the accounting system.”

Keller, along with city Mayor Judy Reed and Controller Jean Wrote, launched an in-house investigation, but has been unable to determine the location of the funds.

Earlier this week, Keller said she and Reed met with accountant Charles Kantorik, who was hired in February to complete the 2001 state Department of Community and Economic Development (DCED) report, and he has expressed similar concerns regarding the matter.

“He has not been able to complete the reports, which was due in March, because the (general fund) account just doesn’t balance,” she said. “There are some very serious red flags here.”

Keller declined to speculate as to the source of internal problem, stating that an accounting firm would make the final determination.

“We are not going to sweep this matter under the table,” she said. “We have every intention of getting to the bottom of this situation.”

Responses to the newly placed advertisements seeking the services of accounting firms will be opened at council’s upcoming meeting.

The city is additionally preparing to enhance its in-place computer system in order to bring the city’s accounting procedures into compliance with state mandates and transfer more of the bookkeeping processes to the upgraded system.

“These new upgrades will allow us to generate our own requisition forms, purchase orders and checks, which will save us time and money,” said Keller.

She estimates the software and associated equipment to cost the city about $15,000.

“While we have been encouraged to scrap this system because it is more than 12 years old, it will provide the basis we need for the upgraded system and it will get the job done,” said Keller.

A resolution to purchase the needed equipment will be presented to council at its June 11 meeting.