YELLOW SHEET
Office of the State Auditor of Missouri
Claire McCaskill
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YELLOW SHEET Office of the State Auditor of Missouri |
November 23, 1999
Report No. 99-113
Some problems were discovered as a result of an audit conducted by our office in response to the request of petitioners from the City of Matthews, Missouri.
NOTE: Recommendations, as well as responses from the city, which correspond with the findings below are included in the audit.
During 1998, the Board of Aldermen became aware of serious financial problems facing the city. Instances were noted where a vendor had turned the city's account over to a collection agency to obtain payment and the city had not paid its bills and withholding taxes in a timely manner. The city had not paid New Madrid County since 1988 for their share of election costs and printing the city's tax statements. This bill totals $5,064 and the city is currently making monthly payments to the county. In addition, the city was assessed and paid penalties and interest on delinquent withholding taxes totaling $7,167 during 1997 and 1998.
Records accounting for the amounts billed to and paid by water, sewer and trash customers were inadequate. The former City Clerk's utility accounts receivable records prior to September 1998 were not complete. Some customers were omitted from the records and payments made by customers were not consistently recorded on the receivable records. As a result, it is not clear if many of the customers paid their utility bills.
Budgets and financial statements were not properly prepared and used by the Board of Aldermen to aid in managing the city finances. In addition, the balance in the city's bank accounts was not adequately monitored resulting in unnecessary overdraft and maintenance charges totaling $992 during 1998 and 1997.
Voters approved a one cent general sales tax in 1988, but because city officials failed to provide the Missouri Department of Revenue with the election results, the sales tax was never implemented. As a result, the city has lost significant amounts over the last eleven years.
Water, sewer, and trash revenues have not been restricted for the purpose of providing the related services.
Ordinances have not been adopted to establish the compensation and duties of the city's elected officials and the City Clerk. The former City Clerk received three extra weekly checks totaling $651 that were not included in the payroll register.
The City Collector does not prepare annual reports of tax collections and delinquent taxes, and penalties are not correctly assessed on delinquent taxes.
The city does not have a formal bid policy, documentation to support disbursements was not always retained, the board does not document its review and approval of expenditures, and invoices are not always marked paid after payment is made. Cash bonuses totaling $1,100 were paid to city employees and elected officials during 1998.
The City Clerk also serves as the City Treasurer and the City Collector contrary to an Attorney General Opinion.
Budgets do not meet statutory requirements. The city does not publish financial statements, submit annual financial reports to the State Auditor's office, or obtain annual audits.
Minutes of board meetings were not prepared prior to September 1998, and minutes prepared after this date were not signed. Notices of meetings were not posted. The city's ordinances are not complete and up-to-date, and the city does not have a policy regarding public access to city records.