
Illustration courtesy of city of Homewood
The city of Homewood's finance director, Lester Smith, offered recommendations for new safeguarding methods in a Jan. 6 finance committee meeting.
During last week's finance committee meeting, finance director Lester Smith provided recommendations to improve fiscal security that includes updating the city’s accounting software, Encode.
This upgrade was already scheduled before his arrival, but Smith has continued the city's efforts to improve the finance department and overall city operations after last year's embezzlement findings. The forthcoming improvements are essential, as the city received a report on Friday from the Alabama Department of Examiners of Public Accounts Review that cited a lack of or ineffective management oversight, a lack of internal controls, poor record keeping and inconsistent policy adherence.
As the city moves forward, the focus is on safeguarding assets, reducing costs, and mitigating risks.
In addition to the software update, current priorities include addressing major financial risks by implementing controls to prevent, detect, or correct actions that could threaten the city’s finances. A key change includes switching to Synovus Bank. This transition will create a new workflow to prevent and detect risks in real time, reducing fraud and improving financial management. Synovus offers specialized services for government agencies, including fraud prevention, payment management, and enhanced workflows.
These services will integrate with the city's accounting system, scheduled for an upgrade on May 1, 2025. Features include approval flows for online transfers and credit card payments, secure cash handling for city hall deposits, and detailed tracking of who manages funds. These improvements aim to strengthen financial oversight and control.
For more information on Smith's recommendations, watch the full meeting below: