ARCHER – The City of Archer is facing ongoing scrutiny after an independent audit identified widespread deficiencies in its financial operations, including problems related to utility billing, payroll taxes and internal accounting controls.
The audit, which examined multiple fiscal years, documented numerous weaknesses in how the city tracked revenue and expenses. Among the most concerning findings were irregularities in the city’s water and sewer billing system, where some customer accounts were not billed accurately or consistently.
Auditors reported instances in which utility customers were charged only minimum fees regardless of usage, while other accounts showed extended gaps in billing. In addition, utility revenue records did not consistently align with bank deposits, raising concerns about whether all payments were properly recorded.
The audit also revealed failures in payroll administration, including the nonpayment of federal payroll taxes that had already been withheld from employee wages. Those lapses resulted in a significant liability to the Internal Revenue Service and compounded the city’s financial instability.
Auditors cited weak internal controls as a contributing factor, noting that the same employees were often responsible for receiving payments, recording transactions and reconciling accounts. That lack of separation, auditors said, increases the risk of errors and reduces financial oversight.
Additional findings included duplicate accounting entries, deposits recorded in inactive or closed accounts, and discrepancies between financial reports and actual bank balances. Auditors concluded that the city lacked formalized financial procedures and consistent review processes.
City officials discussed the audit findings during public meetings, acknowledging that the problems developed over time and were not limited to a single department or transaction. The financial issues have prompted the city to seek outside assistance to reconstruct records, strengthen accounting practices and bring operations back into compliance with state and federal requirements.
The situation has also led to administrative changes and heightened oversight by elected officials. Residents have raised concerns at commission meetings about utility billing accuracy, transparency and the city’s long-term financial stability.
City leaders have said correcting the deficiencies will require sustained effort, improved internal controls and updated financial systems. Auditors cautioned that resolving the issues and restoring public confidence will take time as corrective measures are implemented.
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