YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2006-84
December 2006

The following problems were included in our audit of the Hyannis Port Road Transportation Development District.

The Hyannis Port Road Transportation Development District (the district) was established on July 16, 2004, and is located in an unincorporated area of Jefferson County.  Its related development is the Gravois Dillon Plaza.  The district was formed for the purpose of improving traffic flow into and out of the development. The district's qualified voters approved the imposition of a 1 percent sales tax on all taxable transactions within the district effective November 1, 2004.  The costs of the district's transportation projects were originally estimated at approximately $564,000, with the costs of construction and other related costs being paid initially by the owner/developer. The transportation projects were completed in July 2005.

On September 29, 2005, the board approved a resolution approving and certifying transportation project costs totaling $599,289, to be reimbursed to the owner/developer and authorized a revenue note to that party.  Subsequently, the district made a payment of $197,091 on the note to partially reimburse the owner/developer for the costs incurred.    Also, the board passed a resolution repealing the district's sales tax, effective November 1, 2005.  At the time these actions were taken, the owner/developer was still owed about $402,000 in unreimbursed transportation costs. 

On September 11, 2006, the board approved a resolution formalizing its intent to:  dissolve the district, request the required audit, and subsequently submit to its voters a ballot question to abolish the district.  The State Auditor's Office has performed an audit of this TDD as required by state law. 

Our audit indicates the district's assets exceed or meet its outstanding liabilities. However, before proceeding with the abolishment of the district, the board should ensure a written agreement is entered into formalizing the owner/developer's intent to forgive or write-off the district's liability for any unreimbursed transportation project costs.

Our audit also noted bid documentation for the construction contract related to the district's projects was not maintained by the records custodian. The board minutes also do not indicate whether a board member who was a party to the construction contract abstained from voting when costs were certified and approved for reimbursement.  Additionally, the district did not solicit requests for proposals for some professional services and did not submit annual financial reports to the State Auditor's Office for 2005 or 2004, as required by state law.

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