YELLOW SHEET Office of the State Auditor of Missouri |
July 30, 2003
Report No. 2003-76
The following problems were discovered as a result of an
audit conducted by our office of the City of Branson,
The city has expended approximately $29 million for the development of
a waterfront project and a convention center on lakefront property in the
downtown area.� There has been extensive controversy
over the development, and the city is currently involved in two pending
lawsuits.� Our review of the project
noted work was performed on the development prior to entering into written
contracts, some costs were questionable due to the lack of documentation, bids were
not solicited for some services, and an independent feasibility study was not
obtained prior to committing to the project.
The city has expended over $1.7 million to subsidize the
principal and interest payments on bonds for the Branson Meadows Development Project
as of September 30, 2002.� While in 1995 the
city initially estimated a gain of approximately $19 million, this project has
fallen short of meeting original estimations and it appears unlikely that the
city will break-even on the project.�
The
city does not adequately monitor tourism tax collections.� Our review noted several business licenses
were renewed even though delinquent tourism taxes were owed, and penalties and interest
were not consistently applied to delinquent accounts.� In addition, concerns were noted regarding
the marketing portion of the city's tourism tax funds.
Large
payments were made to city administrators and directors for "special
leave", unused vacation and sick leave, and deferred compensation with no evidence
of prior board approval.� In addition, payments
made during 2001 and 2002 to select city employees totaling $56,733 for
"special leave" appear to be in violation of the Missouri
Constitution. Further, the City Administrator received $19,263 for unused
vacation and sick leave; however, leave records maintained by the city were
unreliable.
Financial
information prepared by the city to inform city residents and the Board of
Aldermen of the city's financial position was often incomplete, inaccurate and
lacked adequate detail.� For instance, $4
million in reserve funds were not reflected in the city's budget, and a $1.3
million transfer was omitted from the city's Tourism Tax Fund budget. In addition,
there was a $2.8 million difference between the ending and beginning fund
balance reported in the city's published financial statements.
The
city pays for approximately seventy-seven cellular phone plans for various city
departments and employees.� Cellular
phone expenditures totaled approximately $21,800 for the year ending September
30, 2002.� The city has not established a
written policy regarding cellular phones, and confusion exists among city
employees as to whether personal calls are allowed and should be reimbursed to
the city.
Several
weaknesses were noted with the Board of Aldermen's procedures for closed
meetings.� Open meeting minutes were not
always maintained or signed attesting to their accuracy. In addition, it is not
evident if the city is complying with the Sunshine law regarding public
requests for information.
The
audit also includes some matters related to city vehicles and contractual
agreements.