Report No. 2011-39
August 2011
Complete Report
Findings in the audit of the Thirty-Fourth Judicial Circuit, City of Howardville Municipal Division
Accounting Controls and Procedures
The audit identified significant weaknesses with the municipal division's accounting controls and procedures, making it difficult to ensure that all receipts are deposited and accounted for properly. Accounting duties are not segregated. The Court Clerk performs all accounting duties without adequate supervision or review, and accountability over receipts is inadequate.
Receipts are not recorded on a cash control ledger, receipt slips are not always issued in numerical order, method of payment is not always noted, and procedures for voiding receipt slips need improvement. The municipal division's practices do not meet the requirements of the Missouri Municipal Clerk Manual, and there is no assurance all monies received are properly deposited.
Receipts are not deposited timely and intact, and checks and money orders are not restrictively endorsed until the deposit is prepared. The municipal division collected $267.50 that does not appear to have been deposited.
For 68 percent (44 out of 65) of the violations we reviewed, fines and court costs collected did not agree with the amounts authorized by the violations bureau schedule, mainly because no court costs were collected in the majority of these cases. The final disposition of some cases was not documented on the dockets as required by state law, and the Municipal Judge does not always sign the court dockets after case dispositions are recorded.
Partial payments received and balances due are not accounted for or followed-up on properly. The municipal division is collecting a Law Enforcement Training fee; however, the city has not passed an ordinance authorizing this fee. Fines and court costs are not disbursed to the city at least monthly, as required by state law. As of February 28, 2011, the municipal division bank account contained $18,700, most of which should be disbursed to the city.
The municipal division does not perform monthly bank account reconciliations and does not identify or reconcile month-end liabilities. The bank signature card for the municipal division bank account only listed the former City Clerk who resigned in 2010. Bank signature cards need to be updated in a timely manner.
Records and Reports
Some municipal division records for periods prior to October 2009, could not be located, including case files, dockets, and most financial records. Moreover, 45 percent (17 out of 38) of the traffic tickets dated after October 2009 selected for review could not be located. The lack of records makes it impossible to confirm whether traffic tickets and court cases were processed and accounted for properly. Missouri Supreme Court Operating Rule 8.04.6 requires municipal divisions to retain all case file records, which is essential for establishing accountability and demonstrating compliance with state law. The municipal division has not always filed accurate and timely monthly summary reports of cases heard in court, including fines and court costs collected, as required by state law.
Ticket Accountability
Neither the police department nor the municipal division adequately accounts for the numerical sequence of traffic tickets issued. Our review of the 200 tickets assigned to the police department during the audit period revealed 42 could not be located. Because tickets are not adequately tracked by number and ultimate disposition, the municipal division cannot be sure all tickets assigned and issued are properly submitted or voided.
Court Clerk Trainer
The Board of Aldermen authorized an individual to help train a temporary court clerk and perform certain duties, such as preparing deposit slips and requesting the city disburse Law Enforcement Training fees to the state. This individual was allowed access to municipal division assets and court records without the knowledge and authority of the Municipal Judge and without being bonded. To reduce the risk of loss or misuse of funds, all persons with access to court assets should be bonded, and to protect confidential court records, individuals should not be given access to court records without authorization from the Municipal Judge.
In the areas audited, the overall performance of this entity was Poor.*
American Recovery and Reinvestment Act 2009 (Federal Stimulus)
The Thirty-Fourth Judicial Circuit, City of Howardville Municipal Division, did not receive any federal stimulus monies during the audited time period.
*The rating(s) cover only audited areas and do not reflect an opinion on the overall operation of the entity. Within that context, the rating scale indicates the following:
Excellent:
The audit results indicate this entity is very well managed. The report contains no findings. In addition, if applicable, prior recommendations have been implemented.
Good:
The audit results indicate this entity is well managed. The report contains few findings, and the entity has indicated most or all recommendations have already been, or will be, implemented. In addition, if applicable, many of the prior recommendations have been implemented.
Fair:
The audit results indicate this entity needs to improve operations in several areas. The report contains several findings, or one or more findings that require management's immediate attention, and/or the entity has indicated several recommendations will not be implemented. In addition, if applicable, several prior recommendations have not been implemented.
Poor:
The audit results indicate this entity needs to significantly improve operations. The report contains numerous findings that require management's immediate attention, and/or the entity has indicated most recommendations will not be implemented. In addition, if applicable, most prior recommendations have not been implemented.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
