McClusky faces audit setbacks, approves grocery store loan
The McClusky City Council learned during its July 13 meeting that unresolved audit issues dating back several years are preventing the city from obtaining grant funding, while members also approved a loan to assist the local grocery store with a payroll-related financial shortfall.
During discussion of the city's audit status, council members were informed that the city failed its 2023-24 audit and that financial records were reportedly off by more than $117,000. Officials were advised that records dating back to 2017 may need to be reconciled with assistance from a certified public accountant and the State Auditor's Office.
Council members also learned that audits for 2020, 2021 and 2022 had failed and that the unresolved findings are affecting the city's ability to secure grant funding for infrastructure and other projects. Engineers are expected to attend the August council meeting to discuss options for moving forward with funding and grants once the audit issues are addressed.
In other business, the council unanimously approved a $15,000 loan to the McClusky grocery store after learning two employees had not cashed paychecks dating back to December in an effort to help the store maintain cash flow for inventory deliveries. According to the council discussion, the uncashed checks totaled approximately $25,000.