Report No. 2009-42
May 2009
Complete Audit Report

The following findings were included in our audit report on the village of Iatan.

Accounting duties are not adequately segregated and the board does not adequately review the work performed by the Village Treasurer. The village has not established separate accounting records for restricted receipts to ensure they are expended only for the intended purpose. The village has a General Fund, Street Fund, Town Hall Fund, and Cemetery Fund; however, adequate records are not maintained to accurately track the balance of the General and Street Funds, which are maintained in combined checking and savings accounts. Adequate records do not exist to account for the restricted street monies received.

Monthly bank reconciliations are not performed, accurate book balances for the various funds are not maintained, and dual signatures on checks are not required. In addition, various records could not be located and receipt slips are not issued for some monies received.

Minutes were not retained for some board meetings and some minutes were not signed by the Village Clerk and Chairperson. In addition, minutes did not include some information required by state law and did not contain sufficient detail of matters discussed and actions taken. The village did not post notices of meetings or tentative meeting agendas during 2006 and 2007. There is no evidence that public hearings on the village’s proposed tax rates have been held in recent years, and the board has not formally approved the village tax levy since August 2006. Additionally, the village does not have an ordinance establishing rates to be charged to non-residents for the use of village trash dumpsters, and existing village ordinances are not complete and up-to-date. The village has not adopted ordinances to address all issues required by state law, including tax rates. Furthermore, the village has not adopted a policy regarding public access to village records as required by state law.

Monthly financial reports are in need of improvement. The village does not publish or post semi-annual financial statements in accordance with state law and has not submitted annual financial reports to the State Auditor's office since the year ended June 30, 2004. The village does not prepare annual budgets and a formal street maintenance plan for the village streets has not been prepared annually.

Two trustees were involved in the appointment of their relatives as Village Clerk and Village Trustee. The Missouri Constitution provides that any public official who names or appoints to public office or employment any relative within the fourth degree shall forfeit his office. Neither of these two trustees is still on the board.

The Board of Trustees does not always review or approve the payment of village invoices prior to disbursements being made. Vendor invoices or other supporting documentation were not always obtained and/or retained. In 2007, the village paid for a mower and a shed with Cemetery Fund monies for $1,400 and $100, respectively. According to the board, the village did not receive these assets at the time they were purchased. A check for $1,400 was made payable to Trustee Harris and cashed, and the proceeds were used to purchase a mower for $600. The additional $800 was not returned to the village and is apparently missing. Village officials indicated they received the mower in February 2009, but have taken no action to recover the $800. A check for $100 was paid to former Trustee Coffey for a shed, but the village has apparently never received the shed.

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