Report No. 2008-48
July 2008
Complete Audit Report

The following findings were included in our audit report on the City of Centerview, Missouri.

The Centerview City Clerk is responsible for all record keeping duties of the city, including duties that would be performed by a City Treasurer and signing checks. There was no evidence the board provided adequate supervision or review of the work performed by the City Clerk. In addition, a complete financial accounting system has not been established and receipts are not deposited on a timely basis.

The practice of allowing elected officials to carry delinquent water/sewer balances represents a potential violation of state law. Except for one alderman, Frank Todd, the current aldermen and former mayor had delinquent utility (water/sewer) bills at the time they filed for election. One alderman owed almost $3,000 in utility charges, and another alderman owed over $1,000. Monthly reconciliations of water/sewer billings, payments received, and amounts remaining unpaid are not performed and the gallons of water billed to customers are not reconciled to the gallons of water pumped or compared to the water purchased. Controls over water deposits need to be improved and the adjustment of sewer charges during the summer months does not appear to be approved by the board.

The city does not have formal written bidding and purchasing policies. As a result, the decision of whether to solicit bids and/or proposals for a particular good or service is made on an item-by-item basis. In 2007, the city paid $1,400 for snow removal, $1,000 for mowing, $1,365 for meter reading, over $14,000 for management of the city's water/wastewater system, and $2,500 for attorney fees. According to city personnel, the city has not solicited bids/proposals for these goods/services for many years. Additionally, the city did not always have formal written agreements with companies or individuals providing services to the city. Also, the board does not review and approve invoices or other supporting documentation before payment is made and some expenditures do not appear to be prudent or a necessary use of public funds.

The city does not require police officers to prepare timesheets or otherwise account for their time. It appears the police officers set the time and dates they work and neither the board nor the city clerk is aware of when they are or are not working. Also, some elected officials were compensated for performing services for the city and their compensation was not reported to the Internal Revenue Service.

Also included in the audit report are recommendations related to restricted funds, financial reporting and budgets, public records, and capital assets.

Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov