The Missouri State Auditor’s Office has released an audit of a city in Cooper County.
According to a news release, the audit of the city of Otterville was initiated by a citizen petition signed by Otterville residents seeking an independent review of the city’s financial practices. The report highlighted concerns with fiscal oversight in several areas and gave the city government a rating of fair.
The audit found the Board of Aldermen does not have adequate oversight over the financial functions performed by the city clerk, who is responsible for the city record keeping. The audit found several checks that did not have dual-authorized signatures. In addition, the city did not obtain required audits of its waterworks and sewerage systems. The audit recommended increased oversight and segregation of the clerk’s duties, and that the required audits be performed.
The audit also found the city needs to do more to ensure financial transparency. Accurate financial statements were not prepared and maintained, and financial statements were not being published as required. City officials also did not properly amend the budget when necessary, as required by state law. On November 14, 2018, the board passed an amended budget, but only after the city had exceeded what had previously been budgeted. Even after the amended budget was passed, the city still overspent from some funds.
The audit also recommended better oversight of credit-card purchases. For any purchase exceeding $250, city ordinance requires two signatures. However, the audit found a credit-card purchase from 2018 that totaled $495. The credit card also was used to make personal purchases, which were later repaid. Additionally, some credit-card bills were paid late, resulting in late fees and interest being charged to the city.
The city also needs to improve procedures for recording and depositing monies. The need to improve payroll, timesheet, leave- and health-incentive policies for city employees also was highlighted.
A complete copy of the audit can be found at http://app.auditor.mo.gov/Repository/Press/2020019992088.pdf.