City hit with more unexpected golf course bills

The City of Devine is facing more debt left behind by previous stewards of the Devine Municipal Golf Course after learning that a number of 2017 and 2018 tax forms were not filed or paid.
Interim City Administrator Dora Rodriguez informed Council at the Special meeting on May 14 that Form 941 had not been filed for 4Q 2017, and had not been filed or paid in 1Q, 2Q, or 3Q 2018; that Form 940 had not been filed or paid in 2017 or 2018; and that Form 1120 had not been filed for 2018.
Form 941 is used to report income taxes, Social Security tax, or Medicare tax withheld from employees’ paychecks, as well as to pay the employer’s portion of Social Security or Medicare tax. Form 940 is used to report employers’ annual Federal Unemployment Tax Act (FUDA) tax, while Form 1120 is a corporate income tax return.
Rodriguez said that around $20,000 was owed for Form 941, not including possible penalties and interest.
Financial Advisor Mary Rodriguez said the City became aware of the issues after receiving a letter from the IRS, and that she had discussed the matters with Art Campsey, the Devine Golf Association’s former CPA.
“We asked him to get power of attorney from the IRS so that he could discuss it because [the IRS] will not discuss it with us,” M. Rodriguez said.
She estimated that money owed for Form 940 at around $1,000 without possible penalties and interest, though she said she hoped that Campsey would be able to get those waived.
“But we will have to pay [Campsey] to get all of that taken care of for us,” D. Rodriguez said.
M. Rodriguez said 44 adjustments have been made to the DGA’s books for Fiscal Year 2017-2018, and that Campsey is in the midst of doing another audit.
“Why didn’t their CPA catch any of this?” District 4 Councilwoman Jennifer Schott asked.
“They had dropped him to save money,” Mayor Bill Herring replied.
D. Rodriguez added that not all of the bank accounts had been shared with the City. Payments were made from multiple accounts, “so it’s confusing trying to get it all in order,” D. Rodriguez said.
“We’ve been in contact with [City Attorney Tom Cate] on this,” D. Rodriguez added. “We’ve been in contact with our auditor, to make sure we’re doing everything correctly.”
The DGA turned day-to-day operation of the golf course over to B&S Management Group in November 2017. B&S ran the course until July 2018, when Shannon Rackley Rangel appeared before Council and asked the City to take over the course because of financial insolvency.
Council voted 4-0 (District 2 Councilman David Valdez absent) to do so at a Special meeting held July 31, 2018, and has owned and operated the course since then.
By Marly Davis
Staff Writer