YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

March 24, 1999
Report No. 99-18

Some problems were discovered as a result of an audit conducted by our office in response to the request of petitioners from Appleton City, Missouri.

NOTE: Recommendations as well as responses from the city which correspond with the findings below are included in the audit.

The city did not have formal written bid policies and procedures. There were significant problems with accounting controls and procedures including failure to perform reconciliations of account balances, billings and collections for the utility system.

Payroll was not correctly calculated for employees contributing to a deferred compensation retirement plan and there needs to be a formal policy for public access to city records.

The Depreciation and Replacement Account for the Waterworks and Sewer Fund is not properly funded. Revenues from the water and sewer system do not appear to cover the costs of operating the system. Timely audits are needed of the water and sewer system.

The city received reimbursements of $18,995 from a federal grant for community policing, that do not appear to have been allowable.

Complete Audit Report