YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

The former Mayor received $5,520 in excess payments during the period April 1997 to June 2000.� The city ordinances state the mayor is to be paid $100 per month and $20 for each meeting attended, and that these payments should be made in December of each year. The former Mayor received payments in advance of when they were due and received more than the amount earned.� The following table illustrates the overpayments to the former Mayor.������

Weaknesses in the city�s disbursement procedures allowed these overpayments to occur.� This could have been prevented or detected on a more timely basis if adequate oversight and reviews had been performed and if internal controls had been established. Information regarding the overpayments was turned over to the Missouri State Highway Patrol and the St. Charles County Prosecuting Attorney�s office.�  

In addition, adequate support for mileage reimbursements made to the former Mayor totaling $2,983 during the period April 1997 to June 2000 was not available.� 

The city did not document the selection process for some professional services, such as public works services and engineering services.� The city paid approximately $88,216 and $21, 137 for the public works contract and engineering services contract, respectively, for the ten months ended December 31, 2000.� The City Administrator indicated other firms were considered; however, documentation was not maintained.

State law requires that political subdivisions which utilize engineering services request annual statements of qualifications and performance data from firms, and that when negotiating for a contract, the political subdivision must list three highly qualified firms and select the firm considered best qualified and capable of performing the desired work.� In addition, a city ordinance provides that when obtaining professional services, proposals must be solicited from three or more sources to permit reasonable competition consistent with the nature and requirement of the procurement. 

From April to June 1999, the city paid approximately $32,000 for sewer treatment plant equipment and related costs that was never used.� The city purchased equipment from a used sewer treatment plant and purchased a crane to install the equipment; however, the crane never functioned properly and the equipment was never installed.� The city�s failure to adequately plan for the use of this equipment caused monies and city workers� time to be wasted. 

It is unclear whether building, electrical, and plumbing permit fees are a tax or a user fee.� A tax is a charge approved by a public vote.� A user fee is a charge which covers specific costs incurred by the city and does not require a public vote.� In June 2001, the board voted to increase the building, electrical, and plumbing permit fees without a public vote.� The city uses a contractor to provide inspections to residents applying for the permits; however, the city does not track the costs of the inspections.� Revenues generated by the building, electrical, and plumbing fees are not accounted for separately form general operations. 

Although the city had a rate study performed in July 2000 that concluded the fess were adequate; the city�s independent audit report indicated disbursements for the water and sewer system exceeded revenues by approximately $23,000 during the ten months ended December 31, 2000.� The city needs to evaluate the two reports and determine the adequacy of the rates.� Water and sewer fees are user charges which should cover the cost of providing the related services. 

The city�s budgets did not include some information as required by state law.� Actual expenditures exceeded the amounts budgeted for some funds and budget amendments were prepared approximately five months after the year end.� Budgeted expenditures are overestimated to equal the beginning resources available plus budgeted revenues. 

The audit also includes some matters related to board meeting minutes, disbursement� and fixed asset procedures, Community Oriented Policing Services (COPS) grant, and board meetings and ordinances, upon which the city should consider and take appropriate corrective action.�

Complete Audit Report