YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2004-67

September 7, 2004

The following problems were discovered as a result of an audit conducted by our office of the City of Nevada, Missouri. 

Receipts totaling $39,701 were collected by the City of Nevada from January 2002 to April 2004 but were not deposited. 

The city does not track payments for various types of tax revenues to ensure all payments are properly received and recorded in the city's accounting records.  As a result, cigarette and franchise taxes totaling $24,445 received by check were deposited into the city's bank account but were not recorded in the city's accounting records.  These checks were substituted into the city's deposits and recorded cash receipts were not deposited, and apparently misappropriated. 

Adequate controls have not been established over receipts collected by the city's pool and golf course resulting in $15,256 received by these facilities apparently being misappropriated.  These fees were collected at the city's pool and golf course, but were apparently not recorded in the city's accounting records and not deposited into the city's bank accounts.

A lack of internal control and little or no independent review allowed these misappropriations to occur and not be detected.  Information regarding these missing monies has been turned over to the Vernon County Prosecuting Attorney and the Missouri State Highway Patrol.   

Also included in the report are several recommendations related to weaknesses in the city's accounting controls and procedures. 

A petition audit fulfilling our obligations under Section 29.230 is still in process, and additional findings and recommendations will be included in a subsequent report. 

Complete Audit Report