Report No. 2007-62
October 2007

Complete Audit Report

The following finding was noted as a result of an audit conducted by our office of the Twelfth Judicial Circuit, city of Wellsville, Missouri Municipal Division.

The city of Wellsville Municipal Division is within the Twelfth Judicial Circuit, which consists of Audrain, Montgomery, and Warren counties. The Honorable Keith Sutherland serves as Presiding Judge.

Monies received by the Wellsville Municipal Division are not always deposited on a timely basis. Some checks and money orders are not restrictively endorsed immediately upon receipt and monies are not maintained in a secure location prior to deposit. In addition, on July 13, 2007, the City Clerk/City Collector deposited $3,000 in proceeds from the sale of a police department vehicle into the municipal division bank account. These monies represent city funds and should be turned over to the city and be subjected to the budgetary and fiscal controls of the city.

The municipal division does not maintain a comprehensive accounts receivable control ledger. A comprehensive accounts receivable ledger is necessary to provide increased accountability and facilitate monitoring of amounts due to the court.

Fines and court costs due to the city's General Fund are not paid to the city treasury at least monthly as required by state law. During the two years ended March 31, 2007, only eight payments were made to the General Fund. No payments were made to the General Fund between July 2006 and July 2007. At June 30, 2007, the reconciled balance of the municipal division's bank account was approximately $16,500. In addition, some court fees are disbursed prior to collection.

Monthly bank reconciliations were not prepared timely and procedures have not been established to resolve old outstanding checks. In addition, the bank signature card for the municipal division's account has not been updated. To protect court assets, individuals no longer responsible for court business should be removed from the signature card. Also, monthly reports of all cases heard in court are not filed with the city as required by state law.

Complete Audit Report