Report No. 2008-11
March 2008
Complete Audit Report
The following findings were included in our audit report on the Village of Brumley, Missouri.
The village does not prepare or post notices of meetings or tentative meeting agendas as required by state law. Some meeting minutes were not signed, although the meeting minutes do indicate that the minutes from the prior meetings were read and approved. Board minutes do not always indicate the board's approval of bills to be paid, nor is there any other documentation to indicate the board's approval of all disbursements. In addition, village ordinances are not complete and up-to-date.
The village neither publishes nor posts semi-annual financial statements, submits annual financial reports to the State Auditor's Office, nor prepares annual budgets as required by state law. The village does not prepare street maintenance plans, and has not established a separate accounting for motor vehicle-related revenues as required by the Missouri Constitution. Also, it does not track payments that may require preparation of Internal Revenue Service (IRS) Form 1099-MISC.
Monies received for the rental of the village hall are not deposited and expenditure of these monies is made in cash. Some checks received were held and were not cashed in a timely manner. Checks should be restrictively endorsed immediately upon receipt. The village should deposit all rental monies into the village bank account and make all disbursements by check. Holding monies and making disbursements in cash increases the risk of loss, theft, or misuse of funds.
There were transactions where the Board of Trustees approved payments to board members or board members' relatives, giving the appearance of conflicts of interest. In addition, bids or proposals were not solicited for the services obtained from these related parties. Discussion and decisions concerning situations where potential conflicts of interest exist should be completely documented so that the public has assurance that no village official has benefited improperly.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
