YELLOW SHEET Office of the State Auditor of Missouri |
July 8, 2002
Report No. 2002-49
The following problems were discovered as a result of an audit conducted by our office of the City of Canalou, Missouri.
During 2001, the City of Canalou spent more than it
received in the General Fund.� If this
trend continues, the city's reserves will be depleted and the city will be
unable to provide basic services in the future.� The General Fund had a negative balance for five months and the
Street Fund reserves were used to cover the shortfall.�
The Board of Aldermen does not prepare an annual
budget.� Additionally, the city does not
publish semi-annual financial statements, nor has it submitted an annual
financial report to the State Auditor's Office since 1997, as required by state
law.
As of January 31, 2002, the amount of 2001
property taxes delinquent was $1,647 or 29 percent of the total taxes assessed
in 2001.� The City Collector prepares
monthly reports of taxes collected; however, she does not prepare annual reports
showing taxes collected and delinquent taxes as required by state law.�
The Street Fund is restricted for the maintenance,
repairs, and policing of the city's streets. In December 2000, the city used
$4,000 from the Street Fund to purchase a fire truck .� In 2001, the city used approximately $3,200
for trash removal, lot clean up, and gasoline and propane purchases for the
city.� The city was unable to justify
the use of the Street Fund for these items.
The elected City Collector has also been appointed City
Clerk and City Treasurer.� As a result,
the duties of cash custody and record keeping are not adequately segregated.
Also
included in the audit are recommendations related to bidding procedures,
accounting controls and procedures, disbursements, contracts, fixed assets,
board meetings and minutes, and ordinances.