12/27/1995 Meeting Minutes - Laserfiche WebLink

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. ,~,, Special Council Minutes of 12/27/95 ,,, happen in 'the corporate world if this situation occurred. Mr. Lmd said that large ` ~{, corporations are required by SEG re~~ulations to be audited every yeat'• You coat compare a municipality with a corporation from an audited fin~mcal statements ~aat~pt~tit. However, he believes that IRS regulatio~as will soon require cities to have acctuate, timely financial statements once a year. If North Amsted doffs not take care of this situation now, we are putting ourselves fiPt~~rt^~#1d fio~ end earl could posaly be in violation of IRS regulations. Mr. Lmpert asked for a co t from Gounc~l that, if irregularities should come up, the shuation would be revisited. Mr. Lffid and Mr. McKay said they did not believe it waukl again. Mr. McKay said that he had spoken to Bab Wilhelm, the Deputy State Auditor, who had told him it weal not be worthwhile to reconstruct the entire situation. In aition, said that the auditor's office had cheekecl far fraud and it was them belief that none d occurred. Mr. Liert said he was not suggesting there was fraud. However, he asked Law Director Gareau if Gaff's action of declaring the new ba~uees would affect their ability for ray itt the ftture ~o fraud be determined. Mr. Gareau said the two issues vvtmld be cleaely sa~parate. 4ae would involve pursuing somebody for public ckishonesty, which would. be govert-ed by a five-year statute of limitations. The second issue is baac.y the resohat of a bookkeeping problem Passage of the legislation will sin~-ly 8 to an end a problem. that cannot be resolved any other way. Mr. McKay noted that the bake that will be accepted has been confirmed by the bank. Mr. Limpert continued to express his aa~. whether or not Council would look into the matter agaitn if new fates came to light. Mr. McKay said that it would be out of Council's hsinds. Should a 'an occur, the Auditor of State would pursue the metier. Mr. Mttsial said he want~l to make it absolutely clear that he was not making any allegations that fi~ud was involv~l. His prime concern is to secure additional information from Mr. Burns. Roll call on the motion to remove Resolution No. 95-151 from the agenda: Musial, yes; Nashar, no; McKay, no; Limpert, yes; Lind, na; Milker no. The motion. h~ with two affirmative votes and four negative votes. Resohrtion No. 95-161 remained on the agenda. LEGI~Si..A':~N Ordinance Na. 95-159 introduced by Mayor Boyle was given its third reading. An ordinance to make appropriations far current expenses and exp es for the City of North Olmsted for the year ending December 31, 1996, as amend, Mr. Lind moved for adoption; second by Mr. McKay; }motion passed unauaimously. Ordinance No. 95-1 ~' adopted. Resolution No. 95-161 introduced by Mr. McKay was given its third readin resahrtian to adopt the financial statem~t balances as of er 3 i, 1992 these balances as the be . bal~anices for sttb~quegt years. Mr. Lind r adoption; second by Mr. McKay. ll~ call: Lied, yes; McKay, :yes;. h+~ler, no, because he felt nmre information was needed; N ,Yes; Linulaert, yes. voted yes, Mr. Li~ert expressed his ccmeerns about the legislation. He s' 2