CPA firm backs out of Mount Vernon contract when auditor's office fails to cooperate

Local Government

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Councilmembers James Mahan and Mike Miller | City of Mount Vernon

Mount Vernon City Council members have called for an audit of the Auditor's Office following the withdrawal of McDaniels CPA firm from a contract aimed at improving the city's payroll system. Councilmember Mike Miller made this request during the Aug. 12 city council meeting.

According to a Mount Vernon News article, the city council held a special meeting on July 15 to ensure that Auditor Terry Scott had paid McDaniel CPA to handle the city's payroll system. The council had approved a contract on June 24 for the NeoGov suite of programs and directed the auditor to transfer funds accordingly. The special meeting was convened when it was discovered that these payment transfers had not been made. However, by the time of the meeting, Scott confirmed that funds had been transferred.

Miller expressed his concerns about the CPA firm's withdrawal from the contract during a Mount Vernon City Council YouTube video transcript. He informed fellow council members that he had made a public information request for all documents related to late payment of bills, incorrect employee salaries, and erroneous withholdings, including health care, taxes, unemployment, Bureau of Workers' Compensation, and union dues. He also requested documents detailing when errors were found and subsequently corrected and notices of bill payments not made on time. If these documents are not produced by the Sept. 9 council meeting, Miller said he plans to ask for a vote of no confidence in the auditor's office and compel Scott to provide information for the payroll software system or face being held in contempt of council.

Miller stated he saw that the city is asking the Bureau of Workers' Compensation for forgiveness of a $116,000 penalty. He requested a forensic audit of the auditor's office covering the last three years and sought advice from the city law director regarding any legal ramifications for Scott not following council resolutions. Miller also contacted the U.S. Department of Labor due to potential civil liability issues arising from these problems.

"We've danced around it; we've talked about it now for six months since I've been on council and the mayor's office and city council have tried to work with the auditor's office to fix some problems that we have in city government. Not one time has the city auditor actually brought a solution to the table. The mayor's office and city council have," said Miller.

Councilmembers James Mahan and Mel Severns supported Miller's requests and statements, noting that McDaniel CPA pulling out of its contract highlights trust issues within the city administration. Mahan offered Scott an opportunity to respond to statements made in McDaniel CPA's letter in an appropriate venue.

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