Report No. 2009-53
May 2009
Complete Audit Report
Findings in the audit of the Fortieth Judicial Circuit, City of Noel Municipal Division
Missing Monies
Receipts totaling at least $10,531 were received by the city of Noel Municipal Division or City Marshal's office, but were not deposited for selected periods reviewed. Recorded cash receipts totaling $8,630 were not included in amounts deposited. In addition, two unrecorded checks were substituted into municipal division deposits in exchange for cash receipts totally $191. Further, four cash bonds totaling $1,710, received and recorded by the City Marshal's office, were not deposited. The former Court Clerk was hired on May 1, 2005, resigned from the city on September 27, 2008, and passed away in February 2009.
We recommend the city of Noel Municipal Division consult with legal counsel to establish a plan of action to recover missing funds. Steps should be taken to determine if any additional funds are unaccounted for.
Receipting and Depositing Procedures
Poor procedures and controls over the collection of fines, court costs, and bonds contributed to the missing municipal division receipts. Receipt slips are not issued for some monies received, and the method of payment is not always correctly recorded and reconciled to deposits. Receipts are not deposited intact and on a timely basis, and personal checks of the Court Clerk and city employees are cashed from municipal division receipts. The City Marshal's office does not transmit monies collected in a timely manner, and the municipal division does not always issue receipt slips for bond monies transmitted to the municipal division from the City Marshal's office.
Segregation of Duties and Bond Coverage
The duties of receiving, recording, depositing, reconciling, and disbursing municipal division receipts are not adequately segregated, and an independent review of municipal division records is not performed. In addition, the municipal division and city are not adequately protected from the risk of theft through adequate bonding of municipal division officials.
Municipal Division Liabilities and Disbursements
Monthly lists of open items (liabilities) are not prepared and reconciled to the available municipal division account bank balances. Fines and costs collected by the municipal division totaling over $15,000 have not been remitted to the city treasury as required by state law. The municipal division does not correctly apply forfeited bonds to fines and costs assessed. The municipal division did not pay the correct amount of forfeited bonds to the city, resulting in at least $1,900 being paid to the city in error. Municipal division expenses totaling $3,319 were paid from the municipal division bank account instead of by the city.
Municipal Division Records and Procedures
The disposition of cases heard by the municipal division is not always documented and signed by the Municipal Judge and City Prosecuting Attorney. The municipal division has not prepared and retained a list of cases heard each month as required by state law. A comprehensive control ledger showing the total amount owed by defendants to the municipal division is not maintained. Procedures for maintaining municipal division records need improvement.
Traffic Tickets
Neither the City Marshal's office nor the municipal division adequately account for the numerical sequence and ultimate disposition of traffic tickets issued. The City Marshal's office did not periodically prepare back-ups of traffic ticket information maintained on the computer system.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
