Report No. 2009-23
February 2009
Complete Audit Report
The following findings were included in our audit report on the Village of Quitman, Missouri.
The village's General Fund is in poor financial condition and the board has not adequately monitored the financial position of the village. During the 3 years ended April 30, 2008, General Fund disbursements exceeded receipts by approximately $1,200 causing the fund balance to decrease from approximately $2,900 to approximately $1,700.
A board member, who also serves as the Village Treasurer, performs all accounting functions for the village and there is no documented review of the work performed. Board approval of the monthly financial reports is not documented and the reports are not included with the official minutes.
In 1875, Quitman was incorporated as a third-class city; however, the governing body of Quitman has been operating as a village for many years. Quitman elects a five-member board of trustees in accordance with Chapter 80, RSMo, and levies and collects taxes consistent with laws governing villages. While state law allows voters to elect by a majority vote to become a village, there is no documentation to indicate the classification of Quitman was officially changed from a third-class city to a village.
Board meeting minutes did not include some information required by state law, did not contain sufficient detail of matters discussed and actions taken, and have not been maintained since June 2008. Documentation was not retained to demonstrate that notices of meetings and tentative agendas were prepared and posted as required. There is no evidence that public hearings on the village's proposed tax rates were held in recent years, or that tax rates were formally approved by the board. In addition, a trustee was removed from the board in 2005, but it is unclear under what statutory authority this trustee was removed. Furthermore, a policy regarding absenteeism has not been established, village ordinances are not complete and up-to-date, and the village has not adopted a policy regarding public access to village records.
The village did not prepare a budget for the year ended April 30, 2008, and the budget prepared for fiscal year 2009 lacked some required information. In addition, a significant balance of $6,400 has accumulated in the Road Fund and the board does not have documented plans for how these monies will be spent.
The audit also includes recommendations related to budgets, financial reporting, and disbursements.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
