YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

The Village of North Lilbourn is in poor financial condition. The village had liabilities of approximately $13,000 at June 30, 2001, including $9,800 to the City of Lilbourn for unpaid water and sewer fees.� The village�s available cash balance at June 30, 2001, was only $245.� 

The village has experienced significant financial loss for several years in the operation of its water, sewer, and trash collection services.� The village provides services to approximately 35 customers.� During the year ending June 30, 2001, disbursements for these services exceeded fees collected by approximately $6,000. 

The village is connected to the water and sewer system of the City of Lilbourn, and the city charges the village for both water and sewer usage based on the amount of water supplied to the village.� The gallons of water pumped from the city to the village far exceeded the gallons billed to village customers.� During the year ending June 30, 2001, the village billed its customers for only 15 percent of the total gallons billed to the village by the city.� The village should investigate and correct the problems that cause the significant differences between total gallons of water billed to customers and gallons of water pumped into the village by the City of Lilbourn.� If the village officials cannot make the necessary changes, they should work with the City of Lilbourn to allow the city to take over the operation of the water and sewer system. 

Fee collection and shutoff procedures for water, sewer, and trash services are not adequate.� As of October 23, 2001, uncollected fees totaled approximately $2,300, which is equivalent to 2 to 3 months of total customer billings.� Included in the uncollected amount is $482 and $167 due from village trustees, one of whom is solely responsible for disconnecting services for customers who do not pay their bills.� Services are not disconnected or discontinued for non-payment of fees. 

The village does not prepare annual budgets as required by state law.� In addition, the village does not publish or publicly post semi-annual financial statements, and has not submitted annual financial statements to the State Auditor's Office since 1999.

The Village Collector/Treasurer does not adequately record all transactions on village accounting records.� Disbursements are recorded on check registers but deposits are not recorded, and the account balances are not reconciled to bank balances.� Additionally, the Board of Trustees does not review and approve the payment of village expenditures.� The Village Collector/Treasurer receives the invoices and prepares and signs the checks and the Board Chairman normally co-signs the checks. 

The audit also includes some matters related to board meetings and minutes, duties of the Village Collector/Treasurer, and bonding of village officials, upon which the city should consider and take appropriate corrective action.�

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