YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

August 26, 1999
Report No. 99-62

Some problems were discovered as a result of an audit conducted by our office in response to petitioners from Colfax Township in Harrison County, Missouri.

Colfax Township did not prepare a budget for 1998. While a budget was prepared for 1997, various problems were noted including budgetary overspending and a lack of sufficient and accurate information in the budget document. Actual expenditures in 1997 exceeded the budgeted amount by $11,881. Missouri state law requires townships to keep expenditures within budgeted amounts, unless the governing body approves a resolution authorizing the additional expenditures.

The former township trustee was overpaid $3,150 in commissions during the period from January 1996 to April 1999. The township collector's commissions were incorrectly calculated in 1998 and other compensation paid to township officials did not appear to be in accordance with state law. The township did not properly report compensation and withhold payroll taxes related to compensation paid to township officials.

The former township president was paid $1,475 during 1997 for operating the township's equipment. There was no documentation these services were competitively bid. Such compensation is prohibited unless the transaction is competitively bid. The township does not have a formal bidding policy and has not entered into written contracts for various services received or performed.

The township board does not publish annual financial statements and inventory listings as required by state law. Annual financial statements and inventory listings should be published in a local newspaper which serves the township. In addition, the township's 1997 annual financial report submitted to State Auditor's office was not accurate and an annual financial report for 1998 has not been filed as required.

The board has not held public hearings regarding the township's proposed property tax levies as required. Notices of regular meetings were not posted as required by state law.

An independent review of the records of the township trustee is not performed. Monthly bank reconciliations had not been performed since June 1998, and the receipts and disbursements ledger was not up-to-date. Checks were not restrictively endorsed and voided checks were not retained. In addition, the trustee and other township officials were not properly bonded.

The township does not maintain property records and a formal maintenance plan for township roads has not been prepared.

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