City of Red Oak receives favorable audit report

Andrew Moore, of Judd, Thomas, Smith and Company, PC, delivered the results during the meeting held Monday, March 13.

“This year’s audit went really smooth and was completed in a record four and one-half days. This was a very fast audit due to Miykael [Reeve’s] well-organized preparation,” Moore said. “[…] We look at all the departments as one, similar to a corporation. Miykael has done a fine job communicating budget management through all the departments.”

Reeve serves as the finance director for the City of Red Oak.

“Rather than department heads managing debt and fixed assets, Miykael has taken this task on and placed it in the finance department where it should be,” Moore added.

Moore also told the council the city would not be in the same condition as the City of Dallas is with its retirement liability.

“This city is part of a pool where employees retirement benefits will not be a city liability,” Moore said. He also cited the condition of the city’s cash reserves, which has increased the fund balance by $1.9 million. “We are in much better condition than we were seven years ago. There have been many significant, credible improvements in the financial audit.”

The only improvement Moore suggested was an increase in staff in the financial department but noted the current staff has “done an excellent job. An increase could further smooth out the flow of the department.”

The city’s annual audit will be forwarded to the Government Financial Officers Association for review and evaluation for recognition. Both the City of Red Oak and Reeve have been recognized with the Certificate of Excellence for four consecutive years.

However, this was the first year the council has had to approve the audit, due to a change in state law. The audit was unanimously approved.

The price of easy money

Personal loans normally come with a processing fee of 1-2 per cent, which means for a loan of Rs 3 lakh, a processing fee of Rs 3,000-6,000 needs to be paid. Pre-closure charges are generally low on personal loans (ICICI Bank charges 5 per cent or nil for loans over Rs 10 lakh; HDFC Bank charges 4 per cent or nil for a loan amounting to more than Rs 10 lakh).

Some banks like Axis and SBI do not penalise customers for prepayment of personal loans once they clear their first EMI. In the case of credit card loans, the processing fee is 1 per cent while 3 per cent of the outstanding principal amount is charged as foreclosure fee.