During its Tuesday night meeting, the Hearne City Council learned it had an “unqualified” or “clean” auditor’s report, meaning its auditor, the firm of Seidel, Schroeder, and Co. found no notable problems with either its bank balances or its financial practices. Though the City paid out over 11 million last year, it took in over a million more through a variety of sources of income including utilities, taxes, grants, fines and fees for services, and 4A, 4B, and Hotel/Motel Taxes (HOT funds). The HOT funds were in the red but other sources of income made up for that deficit.
The firm’s representative did point out a few problems but also noted that the city had its own fail-safe methods in place to “mitigate” those problems. For example, it has no clerk to check in and out city materials and machinery but it does have those items in a locked facility with police surveillance.