Report No. 2009-55
Complete Audit Report
The following findings were included in our audit report of the Village of Collins.
The cash balance of the village's General Fund has been declining. Several factors have contributed to this decline. The village spent approximately $280,000 to construct a storm shelter paying approximately $130,000 from the General Fund. This cost was significantly more than estimated, and the village did not prepare a budget to properly monitor these costs. Additionally, expenses, such as wages and fringe benefits, are mostly paid from the General Fund even though employee duties relate to water, sewer, and street services. Further, the village is authorized to pay the cost of street lighting from motor vehicle related fees from the state, but has been paying these costs from the General Fund since 2005. The financial condition of the village's General Fund should be closely monitored by ensuring budgets are prepared, spending is monitored, and expenses are allocated to the proper fund.
The village paid the Maintenance Supervisor $19,500 during the 2 years ended December 31, 2008, in addition to his hourly wage, for extra duties that are not adequately documented. This compensation is based upon agreements that expired as far back as 2002, and these services appear to duplicate the job description and duties listed in the employee policy book. Time sheets are not signed by employees to certify the accuracy of work performed and are not reviewed and approved by the Board of Trustees. Leave benefits are not always calculated in compliance with village policy.
The village needs to improve accountability over its water and sewer system. The village disburses approximately all water and sewer receipts received and does not maintain reserve funds for improvements or major repairs. Additionally, the village does not have documentation to support water and sewer rate increases, and does not compare the total gallons of water pumped to the total gallons of water billed to customers to ensure all water usage is properly billed. The village is holding approximately $2,400 in meter deposits that should be refunded to customers, the meter deposit list is not compared to the balance in the Meter Deposit Fund monthly, and annual audits of the water and sewer system are not obtained as required by state law. Further, the village has not adequately monitored a project to update the lagoon, and total costs for the project have not been tracked. The village does not have adequate maintenance records for its water and sewer system, and the Board of Trustees has not addressed recommendations from a 2007 inspection of the water storage tank.
Improvements over disbursements, such as maintaining written contracts, documenting approval of disbursements and evaluating cellular phone costs is needed. Additionally, fuel usage and mileage logs are not maintained for the village truck, and commuting mileage is not documented and included on the Maintenance Supervisor's W-2 Form.
The village's budget document lacked some information required by state law, did not properly reflect transfers between funds or interest earned on investments, and did not include adequate documentation of the board's approval. Additionally, the Board of Trustees did not periodically compare actual receipts and disbursements with budgeted amounts, and as a result, the village spent more than budgeted from several funds. Further, the village has spent very little from the Capital Improvement Sales Tax Fund for street improvement, and does not have a plan documented on how to utilize the balance of more than $59,000 that has accumulated as of December 31, 2008.
Accounting duties are not adequately segregated and there is no evidence the Board of Trustees provided adequate supervision or review of the work performed by the Village Clerk. Procedures used to record monies received need improvement. Receipt slips are not always prepared, the method of payment received is not always documented, and checks and money orders received are not restrictively endorsed upon receipt. Additionally, monthly bank reconciliations performed by the Village Clerk are not documented, and the village does not have bond coverage for the two board members authorized to sign checks.
The village does not maintain current, complete, and detailed records of capital assets.
Complete Audit Report
Missouri State Auditor's Office