YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

October 25, 1999
Report No. 99-99

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 Willow Springs, Missouri.

The City of Willow Springs relies heavily upon the Electric Fund to subsidize other city services. The city does not generate sufficient unrestricted revenue to pay the expenditures incurred for the General Fund, and the board has not developed a plan to operate the fund without this subsidy. The city has not evaluated the possibility of refinancing its current debt.

User fees for water, sewer, and electric services have not been established at levels consistent with the costs of providing those services. Historically, the Electric Fund has generated significant surpluses while the Water and Sewer Funds have operated at a loss. Transfers have been made from the Electric Fund each year to cover losses sustained by the Water and Sewer Funds.

Although the city has reviewed and adjusted electric and water rates, it appears the rates have not yet been set at a level consistent with the costs of providing the services.

Although the city generally solicits bids for significant purchases, adequate bid documentation was not retained for some purchases, including a used bucket truck for $62,000 and tires for $3,033. City officials indicate bids were solicited, however, documentation of the vendors contacted and the bids received were not maintained. Written documentation of bids provides evidence that the board has complied with its procurement policy.

The duties of receiving, recording, and depositing monies are not adequately segregated. The City Treasurer currently performs all of these duties. Neither the board nor other personnel independent of the cash custody and record-keeping functions provide adequate supervision or reviews of the work performed by the treasurer. In addition, the board needs to improve procedures regarding the monitoring of cash balances, and documenting its approval of disbursements.

Budgets did not include some information required by state law. Actual expenditures exceeded budgeted amounts. Financial statements were not published semi-annually, and annual financial reports were not filed with the State Auditor's office, as required by state law.

The city does not consistently enforce the business license ordinance.

The city's property records are not up-to-date and city-owned property is not tagged or otherwise identified as belonging to the city.

Complete Audit Report