Audit shows city government was overspending

March 11, 2010

The City of Belen’s most recent audit, conducted for the fiscal year that ended on June 30, 2009, shows the city government was overspending, potentially in violation of state law.

The city spent in excess of what had been budgeted by almost $200,000, and simply didn’t budget for more than $1.3 million in expenses.

“Budget authority was exceeded,” according to the 138-page audit report.

The report says the city could be in violation of the Batemen Act, which doesn’t allow a municipality “to become indebted or contract any debts of any kind or nature whatsoever during any current year which, at the end of such current year, is not and cannot then be paid out of the money actually collected and belonging to that current year.”

Any official in violation of the Batemen Act is guilty of a misdemeanor.

The city exceeded the budgeted expenditures in the following funds:

• $1,417 in the Parks and Recreation fund
• $44,429 in the 1/8% GRT Infrastructure fund
• $10,529 in the RSVP fund
• $102,753 in the Street Paving Revolving fund
• $31,699 in the Water fund

Budgets were not adopted for expenditures in the following funds:

• $1,090,710 in the 2008 GRT Revenue Bonds Special Revenue fund
• $582 in the Harvey House fund
• $234,495 in the 2008 GRT Revenue Bonds Debt Service fund

Designated cash appropriations exceeded available balances in the following funds:

• $4,151 in the Becker Avenue fund

Overspending was one of five audit findings for FY2009.

Posted in: Budget