Report No. 2008-39
June 2008
Complete Audit Report
The following findings were included in our audit report on the Village of Humphreys, Missouri.
The Village of Humphreys does not prepare ledgers of receipts and disbursements and does not prepare bank reconciliations. Summary financial information is not prepared for the Board of Trustees' review and approval. Invoices are not filed in an orderly manner and some invoices or other supporting documentation could not be located to support village disbursements.
Controls over property tax collections and distributions need to be improved. Individual receipts are not reconciled to deposits and receipts are not deposited timely. Listings of delinquent taxes are not prepared and the collection of delinquent taxes should be turned over to the county collector as required by state law. In addition, property taxes are deposited into a separate village bank account, and have not been properly distributed since 2004, with $4,325 remaining in the property tax bank account at December 31, 2007. The village levies taxes for general revenue, parks, lights, and streets. The property taxes should be distributed to these four village funds, and to the county assessment fund as required by state law.
The village does not have formal bidding or purchasing policies and board approval is not documented for some disbursements. The village made disbursements on behalf of a not-for-profit (NFP) corporation without a written agreement. The village made payments for sewer testing services without a written agreement, and there is a dispute regarding amounts owed by the village for these services. The village did not document how it allocated certain expenses to various village funds.
During the year ended December 31, 2007, the village deposited approximately $38,000 in water and sewer fees and customer deposits. The village does not keep records of refundable customer deposits, some water/sewer receipts were not recorded as received, and receipts are not reconciled to bank deposits. Additionally, the village does not reconcile total billings, payments received, and amounts remaining unpaid, and does not have comprehensive policies to follow up on delinquent accounts. Also, the village does not reconcile gallons of water purchased to gallons of water billed to customers.
Also included in the audit report are recommendations related to board meetings, minutes, and ordinances, financial reporting and budgets, and payroll and related matters.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
