The Georgia Department of Audits and Accounts recently ruled the city of Ludowici is in violation of state law for not filing its 2006 audit.
According to the official code of Georgia Annotated, Section 36-81-7, all local governments shall provide for an audit each fiscal year to the state, which has been conducted to the standards of professional accounting and auditing standards.
Ludowici Mayor Myrtice L.Warren said the city is not at fault despite the ruling. Instead, she said, the blame lies with the certified public accountant that was handling the audit on behalf of the city.
“We have contacted him (Terry Spivey, Spivey & Company, CPA) several times informing him that we were being told that our audit wasn’t done, and now we find out that we’re on this list as violating the law,” Warren said.
Documentation provided by the mayor, shows the city contacted the company in March, May, September and November of 2007, informing the accounting firm the audit had not been turned in to the state.
“He started gathering information and started on our audit back in August, and we paid him on Aug. 29. We have paid him every time he sent us a bill, and then we learn that we are on this list,” the mayor said.
As a result, the city is not eligible to receive any state grants or funds.
“Right now, we have $25,000 which the city is suppose to be receiving in grant money, and we can’t get it because of this mess, and it’s not even our fault,” Warren said.
As far as she and the city council, the mayor said, they were unaware of any violation until they saw a legal notice about the issue in the Coastal Courier this past week.
“He (Spivey) gave us no indication that there was any problem, so we had no idea of this happening,” Warren said.
Spivey was at Ludowici City Hall this past week and, according to Warren, he told her the audit would be complete no later than Jan. 2.
Attempts to contact Spivey and Company, CPA in Waycross for comments was unsuccessful.
According to the official code of Georgia Annotated, Section 36-81-7, all local governments shall provide for an audit each fiscal year to the state, which has been conducted to the standards of professional accounting and auditing standards.
Ludowici Mayor Myrtice L.Warren said the city is not at fault despite the ruling. Instead, she said, the blame lies with the certified public accountant that was handling the audit on behalf of the city.
“We have contacted him (Terry Spivey, Spivey & Company, CPA) several times informing him that we were being told that our audit wasn’t done, and now we find out that we’re on this list as violating the law,” Warren said.
Documentation provided by the mayor, shows the city contacted the company in March, May, September and November of 2007, informing the accounting firm the audit had not been turned in to the state.
“He started gathering information and started on our audit back in August, and we paid him on Aug. 29. We have paid him every time he sent us a bill, and then we learn that we are on this list,” the mayor said.
As a result, the city is not eligible to receive any state grants or funds.
“Right now, we have $25,000 which the city is suppose to be receiving in grant money, and we can’t get it because of this mess, and it’s not even our fault,” Warren said.
As far as she and the city council, the mayor said, they were unaware of any violation until they saw a legal notice about the issue in the Coastal Courier this past week.
“He (Spivey) gave us no indication that there was any problem, so we had no idea of this happening,” Warren said.
Spivey was at Ludowici City Hall this past week and, according to Warren, he told her the audit would be complete no later than Jan. 2.
Attempts to contact Spivey and Company, CPA in Waycross for comments was unsuccessful.