02-09-54SpMtg FEBRUARY 9, 1954
A Special MeetingcOf the City Council of the City of Delray
Beach was held in the ity Manager's office at 8:00 p.M. ~ith
Mayor Str~ng~ in the Chair, City Manager Robert Lovelace, City.
Attorney ell MacMillan, and the following Councilmen present.
R. J. Holland, Mrs. Alma K. ~oehle, and Glenn Sundy, a quorum
being pre sent.
The purpose of the meeting was to canvas returns of the
Special Election held this day, and to hear final report of
~uditor, Frederic Dunn-Rankin.
Certification of votes cast at the two Polling Places, 15
S.E. 4th Avenue and 415 NW 1st Street, signed by the Election
Boards, were read:
CERTIFICATION OF VOTES CAST
AT SPEOIAL ELECTION HEL~
PRECINCT NO. 27 FEBRUARY 9th, 1954
415 NW 1st Street
Mayor and City Council
Delray Beach, Florida
We, the Clerk and Inspectors of today's Special Election
certify to the following results:
A.b.s.entee Machine N~o. 686~6 Total
Ehall Ordinance No. 183
as passed and adopted by
the City Council of Delray
Beach, Florida on December
28th, 1953, subject to
referendum vote be adopted,
which Ordinance repeals
Ordinance No. 365, pertaining
to Special permits and Re-
Classification procedure in
Zoning.
For the Ordinance 34
Against the Ordinance ____ 50 .. J
TOTAL VOTES CAST ...... 84
CLERK: /s/ O. F. You~gblood
INSPECTORS ~ /s/ Alberta Palmer
L.L. Youngbl ood
CIVIC CENTER
S.E. 4th Avenue
We, the Clerk and Inspectors of today's Special Election
certify to the following results:
Absente.~e __Machine No. Tgtal
Shall Ordinance No. 183 as
passe_d and a~dopted by the
City~ouncil of Delray Beach,
Florida, on December 28th,
1953, subject to referendum
vote be adopted, which Ordinance
FEBRUARY 9, 1954
repeals Ordinance No. 365,
pertaining to SPecial Permits
and Re-Classification pro-
cedure in Zoning.
For the Ordinance 72 68635 72
Against the Ordinance 80 80
TOTAL VOTES CASH 1.52 ... ~
CLERK: /s/ Robert Fleming
INSPECTORS: /s/ Mrs. A.H. Walker
Mrs. Ellis (Blanche
Lamb
W. E. Wilcox
Upon motion of Councilman Holland, seconded by Mrs. Woehle
and unanimously carried, the election returns were accepted as
read.
Mr. Frederic Dunn-Rankin of Frederic Dunn-Rankin & Company
~as introduced. Mr. Dunn-Rankin read the final revision of hiS
special report dated December 18t~, 1953, in which a cash shortage
was disclosed, based on a post-audit examination of cash receipts
and deposits for the period October I through December ll, 1953.
Mr. Dunn-Rankin stated that on February 8th and 9th all the cash
accounts and all the bank accounts were recor~iled with the City's
records and as a resu~ we found that the former City Treasurer
had additional accountability in the amount of $14, 777 . 99.~
Mrs. Noehle stated that Mr. Dunn-Rankin had stated at 'the
time when the shortage was first discovered that ~38,991.05 was
the correct amount ~tith the exception of maybe forty or fifty
dollams, and she asked Mr. Dunn-Ranktn if he didn't know at the
time the amount of the shortage.
~Mr. Dunn-Rankin stated that always before he had referred to
this shortage only as an apparent cash shortage, before you only
had Frederic Dunn-Rankin's statement of the cash shortage - as
of today the posting is up to date and the books of the city subw
stantiate the shortage. At that time we had only taken into the
$icture the period October 1st through December llth - the
14,777.99 applied to the past fiscal year.
Mrs. ~oehle then asked Mr. Dunn-Rankin on what basis he was
here today - were you here on a fee basis? Mr. Dunn-Rankin
replied "Let's say yesterday, I was here on a fee basis to com-
plete transactions through December llth. Yesterday I found
the additional shortage.--
,,
Mrs. Woehle said You mean you didn't know until yesterday
of that additional shortage?"
Mr. Dunn-Rankin said "That is right, it was in bringing
the City records up to date that the final cash shortage was
apparent." Mrs. ~'oehle said "No wonder we didn't find the error
for seven years". Mr. Dunn-Rankin stated "I Nant that recorded
in the minutes".
Mrs. Woehle stated that the Council had already received
a final report from Mr. Dunn-Rankin and asked him what records
he had had since that time and asked him what made him decide
to look a little further. Mr. ~Unn-Rankin replied that he had
to complete the City records. Mrs. Woehle then asked "~hen you
left before didn't you consider thatyour final statement?" Mr.
Dunn-Rankin replied "Final as I knew at that time".
Mrs. Woehle asked "Why did you carry it further"? Mrs.
Dunn-Rankln replied "Up until this time I was the only person
who said Mrs. Smith had stolen any money - today theCity books
verify the fact -'I had to bring the books up to date."
FEBRUARY 9, 1954
Mrs. Woehle stated that the City had received a bill from
Dunn-Rankin & Company for an additional auditing fee and stated
that she was under the impression that the $3050.00 mlready paid
was the complete amount. Mr. D~nn-Rankin stated that this bill
was not part of hia auditing fee, but stated that he had to come
and help the City employee's bring the City books up to date.
Mrs. Woehle then asked Mr. Dunn-Rankin why he was here today.
Mr. Dunn-Rankin stated "The error is this - in totaling the actual
deposit it was today that I remember the ~14,777.99 left from
last fiscal year".
Mrs. Woehle then stated "I would like to direct a Question
to Mr.~orthing - ~l~at do you think of the procedure in this
office - as a CPA, do you consider Mr. Dunn-Rankin's procedure
proper?" Mr. Worthing stated "I certainly didn't see anything
to condemn. As for the other question, the operation of this
office is far better than it has been since Catherine Strong
was in the building. In the past it has been in a deplorable
condition."
Mr. Sundy then asked Mr. Dunn-Rankln_~AVit was that the cash
receipts and disbursements were included in the reports in for-
mer years but not in the 1953 report. Mr. Dunn-Rankin stated
that he considered it unnecessary for th~ Council but that it
could be included easily enough.
Mr. Lovelace then stated that he would like to explain a
little further about the present bill rendered by Mr. Dunn-Rankin
since the time that we had the final auditing fee, we have had
things come up that only an auditor can help us with - the
National Cash Register man and the new machine mperator needed
his 'as sistance.
~r. Dunn-Rankin stated "I would like to say that I am per-
fectly willing to help in any way I can - that this has been
very bad for me, and I feel just as badly as any member of the
Council or any person in this' room and I am perfectly willing
to say that I think Mrs. Smith has taken ~53,688.54. I think
that the amount is immaterial as far as the suit is con~ erned -
that is the criminal suit. You have my whole-hearted coopera-
ti on.
Mr. Holland made a motion that the auditor's bill be paid
and there was no second to the motion. Mr. Holland then asked
Mr. Sundy and Mrs. Woehle why they would not second the motion.
Councilman Sundy stated that he wanted to be sure that it
was the final bill. Mrs. Noehle stated that she certainly did
not expect another bill from Mr. Dunn-Rankin. She further stated
that she thought there was some discussion as to whether Mr.
Dunn-Rankin would be retained for further auditing and that she
did not know he would be back again and she asked who authorized
him to come back.
City Manager ~'ovelace said that he would take the responsi-
bility for asking Mr. Dunn-Rankin to come back. He stated that
't~e have been faced with a major chore that only an auditor,
familiar ~ith our books, could help with. I would like to point
out that the bill under discussion in the amount of ~419.92 is
for five days work at ~65.00 per day plus traveling expense and
postage on verification letters. Mr. Dunn-Rankin's usual fee
is $100.00 per day and he was not paid for today."
Mr. Holland restated his motion that the bill be paid and
Mrs. Woehle seconded the motion which carried unanimously.
Mr. Holland then made a motion that the City Clerk be re-
lieved of the duty of providing cgpies of Resolutions 914 and
915 for each member of the House Gommittee on Ways and Means,
FEBRUARY 9, 1954
as set up in Resolution 915. The motion was seconded by
Councilman Sundy and unanimously carried.
The meeting then adjourned.
APPROVED:
Mayo~
ATTEST:
City Clerk
FEBRUARY 12, 1954
A Special Meeting of the City Council of the City of
Delray Beach was held in the Council Chambers at 5:00 P.M. with
Mayor Catherine E. Strong in the Chair, City Attorney Nell
MacMillan, and the following Council members present: R.J.
Holland, Mrs. Alma K. ~oehle, Glenn ~. Sundy, and ~. Cot~tingham
Allen, a quorum bein~ present.
Upon motion of oUncilman Holland and seconded by Mrs.
~oehle, appointment was made of Mr. ~illtam E. Lawson, Jr.,
as the new City Manager of Delray Beach, at the ~agreed se~ly
salary of $7200.00,~ to be effective March 15, 1954. Upon roll
call the motion carried unanimously.
The meeting then adjourned.
APP R0V ED:
Mayo'~
ATTEST:
City Clerk