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City told to write off loans

December 12, 2000

City told to write off loans



By DAN KULIN / Staff Writer


The City of Hagerstown's annual audit was presented to the Mayor and City Council Tuesday, and auditors gave the city good marks overall with a few "housekeeping" recommendations, including writing off $195,000 in old loans.

Those loans were made by the city using Community Development Block Grant funds, which is federal money the city distributes.

City Finance Director Al Martin said the outstanding loans are $290,000 that paid for some renovations of the Hamilton Hotel building at the corner of Jonathan and West Washington streets, plus a $5,000 small business loan.

Martin said the loans have been deemed uncollectable.

Auditors also looked at about $55,000 in checks from the city that have not been cashed.

Martin said the checks will be reviewed to see if payment can still be made and money left over probably would be turned over to the state as unclaimed property.

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Arthur Crumbacker, of the Hagerstown accounting firm Albright Crumbacker Moul & Itell, the firm that did the audit, said the old loans and $55,000 were "housekeeping" matters.

Overall, "it was a good audit" a "clean audit," Crumbacker said.

In past years auditors have noted that there were incomplete minutes for some council meetings. This year auditors noted that all the minutes for the year audited were available.

The audit presented Tuesday was for the fiscal year that ended June 30.

State law requires the city have an independent audit done annually.

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