Report No. 2009-75
July 2009
Complete Audit Report
The following findings were included in our audit report on the Village of Sibley.
A written contract was not obtained regarding a fusion machine, costing $6,141, purchased for use by a contractor. In addition, the use of the machine is not monitored, and the machine is located on the contractor's property. Employees have been paid in advance of the scheduled payroll date, and the former Treasurer was paid an extra month's salary of $250. Invoices, timesheets, and other supporting documentation to support some disbursements could not be located for the period prior to employment of the current Village/Water Clerk and Treasurer (May 2008). Invoices are not filed in an orderly manner, and individual charge receipts were not reconciled to billing statements for gasoline purchased on a fuel credit card. Formal bidding or purchasing policies have not been established. Disbursements are not approved by the Board before payment is made. Payroll liabilities were not paid timely to the IRS resulting in additional costs. Check writing procedures need to be improved because village checks require only one signature, and some checks are written for cash. Capital asset records are not maintained and an annual physical inventory is not performed.
Annual budgets are not prepared despite the specific guidelines for preparation of budgets outlined by Missouri law. The village has accumulated more cash than is needed for its operations in the Road Fund and Town Fund. Based on current disbursements and the cash available for the Road Fund, the village has sufficient cash available for almost 2 years without collecting any additional receipts, and an annual maintenance plan for village streets has not been prepared. At December 31, 2008, the village had accumulated a balance of $254,954 in the Town Fund, while total disbursements for 2008 were only $35,706. Semi-annual financial statements are not published or posted. The village did not require the bank to pledge adequate collateral for its accounts. In addition, the village does not have a written agreement with its current depositary bank. At December 31, 2008, the village had approximately $132,000 in four non-interest bearing checking accounts.
Receipt slips are not issued for monies received; therefore, there is no assurance all monies collected are accounted for properly and deposited. Monies received are not deposited in a timely manner, and village officials are not bonded.
Adequate documentation is not maintained to support the allocation of wages and other disbursements between the Town Fund and Water Fund. In addition, a formal review of the adequacy of the water rates has not been performed. A monthly reconciliation of total amounts billed, payments received, and amounts unpaid for water services is not performed. Controls over water deposits need improvement, and a formal reconciliation of the total gallons of water billed to customers to the gallons of water purchased by the village is not documented. There is no independent approval or supporting documentation of adjustments posted to the water accounting records by the Village/Water Clerk. Written policies regarding non sufficient funds checks and the disconnection of service have not been established.
Ordinances have not been adopted to set the compensation of village officials, and a board member was compensated for work performed on water meters. The village ordinances are not complete and up-to-date. The village does not have a formal policy regarding public access to village records. Board minutes are prepared and signed by the Village/Water Clerk; however, they are not signed by the Board Chairman. Reasons for closing meetings and the corresponding vote to close the meeting are not always documented in the open meeting minutes. Additionally, minutes maintained for the closed meetings indicated other business was discussed during the closed meetings that was different than the reason the meeting was closed and the other business should have been discussed in an open meeting. Board minutes did not always contain sufficient detail of matters discussed and actions taken.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
