Report No. 2007-26
June 2007

The following findings were included in our audit report on the City of Puxico, Missouri.

The City's General Fund had a cash balance of approximately $38,950 at June 30, 2006. 
However, the true picture shows the balance, including the Fire and Police Departments and the Nutrition Center Fund, to be ($166,326).  As the balance of the General Fund was not sufficient to cover the negative balances of these funds, it appears the city is using monies from restricted funds for general operations.
 
There are various problems with the city's accounting controls and procedures.  Monies collected are not deposited intact or reconciled to the composition of the various receipts issued, and the duties of cash custody and record keeping related to the water, sewer and trash services are not adequately segregated.  The city did not obtain a current appraisal when some real property was purchased.  In addition, the city used taxpayer monies for a Christmas party, employee Christmas presents and for flowers, figurines, and candy for city employees.

The city paid for fuel that the Marshal used in his personal vehicle, when transporting the K9 unit dog.  The Marshal was not required to report mileage or actual vehicle expenses  incurred for city business.  In addition, vehicle usage and maintenance logs maintained by the Maintenance, Fire and Police Departments do not appear adequately detailed and are not reviewed by the Board for reasonableness or agreed to fuel purchases.

The city does not have a formal written bidding policy.  The decision to solicit bids is made on an item-by-item basis.  During the past years, bids were either not solicited or bid documentation was not retained for some items, including $79,649 for a fire truck.  Some bills were not properly approved and numerous payments were processed without an original invoice or adequate supporting documentation resulting in some duplicate payments.  Additionally, the city does not have written contracts for some services.

Complete Audit Report