YELLOW SHEET

Office of the State Auditor of Missouri
Claire McCaskill

May 14, 1999
Report No. 99-35

The following problems, discovered as result of our office's most recent two year audit of the Thirty-Fourth Judicial Circuit's Municipal Division in the City of Howardville, may have been avoided had our prior recommendations calling for stricter financial controls been implemented.

Cash receipts for fines, court costs, and bonds totaling at least $11,847 were received and not deposited during the period July 1, 1997 through May 18, 1998. In addition, payments in excess of the Court Clerk's authorized compensation totaling $22,269, ($9,682 from the court account and $12,587 from the city police account) were made between August 1997 and April 1998.

Information gathered during our review has been turned over to the New Madrid County Prosecuting Attorney.

The city of Howardville Municipal Division accepts cash, checks, and money orders for payment of fines, court costs, and bonds. The Court Clerk was responsible for receiving, recording and depositing court monies, as well as preparing disbursements and reconciling bank statements. In addition, the Court Clerk was responsible for accounting duties related to the city police account. Prior to August 1996, court monies were deposited directly into the city police account. In August 1996, a separate bank account was opened for the deposit of court monies; however, some court monies continued to be deposited directly into the city police account. Individuals authorized to sign checks for the court account and the city police account are limited to the City Clerk, the Mayor, and one alderman.

Vanessa Frazier was appointed court clerk in June 1997 and her employment was terminated in July 1998. She pled guilty to felony stealing related to a misappropriation discovered prior to our audit. (the $4,634 is included in the amounts mentioned above).

Clois Taylor currently serves as the Municipal Judge of the city of Howardville. Earnestine Jackson served as the Municipal Judge prior to June 1998.

We recommend the municipal division, along with the city, continue to work with law enforcement officials regarding any additional criminal prosecution and to obtain restitution of the missing funds and overpayments.

These misappropriations of funds went undetected due to several internal control weaknesses, including inadequate segregation of duties and lack of independent review as discussed in this report.

Complete Audit Report


Missouri State Auditor's Office
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