Audit cites Whitefish court-case backlog

A backlog in processing citations at Whitefish City Court was noted as a significant deficiency by auditors who just finished a review of city records.

An audit report completed by Denning, Downey & Associates for the fiscal year ending June 30, 2008, noted that processing hasn't kept up with the number of citations issued.

"Overall court activity has increased over the last several years," the report notes. "The city's administrative functions have not kept pace."

Auditors recommended the city immediately address the backlog issue and establish procedures to ensure it doesn't occur in the future.

Auditor Bob Denning will have an exit conference with the Whitefish City Council at Monday's council meeting. The report comes just as the city court is changing to a municipal court starting when the new fiscal year begins Wednesday.

City Manager Chuck Stearns said the backlog issue arose during the city budget hearing last week.

"They've made a lot of headway in the past year in catching up," Stearns said about the court's administrative staff of two full-time clerks and one part-time clerk.

Since Finance Director Rich Knapp has an information technology background, Stearns said it was suggested that instead of adding more staff, Knapp could look at the court's processing system and determine if there's any way to make it more efficient.

In his budget memorandum, City Judge Bradley Johnson asked for discussion of making the permanent part-time position into a full-time position.

Johnson also noted that he and the court administrator met with Denning in May to discuss financial issues.

"The court is in good standing with accepted financial accounting practices and Mr. Denning made several meaningful suggestions about better procedures that could be implemented during the conversion period."

He said the court already has been working toward the conversion to a municipal court of record.

Johnson began pushing for more administrative help in City Court several years ago when he asked for a second full-time clerk, citing a burgeoning court workload caused by annexations, population increase and a backlog from prior adjudications.

The council didn't immediately grant the staffing request and instead appointed a committee to deal with the request and study the court's budget needs. Eventually the second clerk was hired, and some time after that a part-time position was approved.

The court will relocate to the new Emergency Services Center once it's completed on Baker Avenue.

AUDITORS found one other significant deficiency in the internal control over financial reporting - the lack of management's discussion and analysis.

The analysis, a cover transmittal letter submitted as part of the annual reporting process for a city audit, was missing because the city had a key transition in the finance department, Stearns said. After Finance Director Michael Eve died in January, it was several months before Knapp was hired.

"Rich didn't have time to prepare" the management's discussion and analysis, Stearns said. "The auditors recommended we go forward [with the audit] instead of waiting."

Features editor Lynnette Hintze may be reached at 758-4421 or by e-mail at lhintze@dailyinterlake.com