YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Receipts were not deposited intact on a timely basis.� The village accepts cash, checks, and money orders for payment of trash and sewer fees, occupancy permits, village stickers, pet tags, building permits, and other miscellaneous receipts.� Prior to April 2001, monies were generally deposited about three times a week; however, some monies were held and not deposited for up to two weeks.� From April� to May 14, 2001, only seven deposits were made and no monies were deposited from May 14, 2001 to June 20, 2001.� On June 30, 2001, the village had approximately $51,785 of monies on hand.� Village receipt records are not reconciled to deposits and from April to June 2001 some receipt records were not maintained.� Additionally, some daily cash register tapes could not be located and some receipts were not posted to the computer.� As a result, there is no assurance all monies received were deposited. 

Trash service receipts are deposited into the General Fund and disbursements are made monthly from the General Fund for trash pick-up and hauling services.� The current fee is $142 annually per household.� The fees collected from village residents have exceeded disbursements for pick-up and hauling by approximately $26,900 for the three years ended June 30, 2001.� The village has not identified any other costs, such as administrative costs, related to trash service.�� Trash fees should be set at a level to cover the cost of providing a particular service and should not be used to pay for general operating expenses of the village. 

The village does not perform periodic reconciliations of total billings, payments received, and delinquent amounts for trash and sewer service, nor does it adequately monitor or pursue the collection of delinquent trash and sewer bills and has not established formal procedures regarding the collection of delinquent accounts.� 

Disbursements are not approved by the board.� Two board members sign checks and review invoices; however, the board does not review and approve a list of all disbursements at each board meeting.� Additionally, some purchases were not properly authorized as required by village ordinance.� The village does not have formal written agreements with several companies or individuals providing services. 

Several checks totaling $630 were made payable to cash.� To reduce the risk of misuse of monies, the practice of writing checks payable to cash should be prohibited. 

The village board has historically terminated the services of all village employees after the new board takes office in April each year.��� This has caused the village to spend money imprudently and various duties and responsibilities were not performed or not performed timely. 

For example, from April 2000 through July 2000,� the village paid the former Village Clerk a total of $17,493.� This included salary, contract payments, two weeks vacation and two months severance pay.� If the village had maintained the clerk�s employment throughout this time, the salary to the former Village Clerk would have been $9,342. 

The village has not established a separate fund or separate accounting for the state motor vehicle-related receipts and disbursements and does not monitor the use of these funds to ensure compliance with the Missouri Constitution.� During the year ended June 30, 2001, the village deposited $107,405 in state motor vehicle-related receipts into the General Fund.� The Missouri Constitution, requires that motor vehicle-related receipts apportioned by the state of Missouri be expended for street-related purposes only, including policing, signing , lighting, and cleaning of the roads and streets. 

The village�s municipal court division�s accounting duties are not adequately segregated.� The Court Clerk and Village Clerk each have the authority to receive and record fine and court cost payments.� The Village Clerk prepares and make the deposits; however, no one independent of the receipt process compares receipt slips to deposits.� This condition was noted in a prior report by our office.� Additional concerns were noted regarding controls over the municipal court receipts. 

The audit also includes some matters related to board meeting postings, budgets and financial statements, personnel policies and procedures, and property records and procedures, upon which the village should consider and take appropriate corrective action.�  

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