08/24/2017
Missouri State Auditor Nicole Galloway says leadership has made major improvements to operations at the City of Rich Hill in Bates County. The initial audit, released in November 2016, found serious financial mismanagement and operational concerns. Auditors returned for a follow-up review this year.
"Officials in Rich Hill have made efforts to address the concerns identified in the report and gain a clear understanding of the status of the city's financial condition," Auditor Galloway said. "While there is work that remains to be done, I am encouraged by the changes that have been implemented. City leaders are taking the initial steps towards fiscal responsibility and strengthening the trust of the taxpayers."
The follow up review found that the Board of Alderman now reviews detailed financial information on a regular basis and approved a budget for the current fiscal year that was in balance. City officials have also adopted practices that allow for better oversight of the accounting work performed by city personnel.
The original report described inappropriate transfers of money between the city's funds, including transfers of money from restricted funds. While the follow-up review found that transfers are still occurring, the amounts transferred are significantly less than in past years. The city has addressed recommendations to make sure restricted funds are used properly and tracked adequately.
The review also found that the city has begun to re-evaluate utility rates by completing rate cost studies. Efforts to adjust rates to appropriate amounts are underway.
In total, auditors identified 19 areas of concern to evaluate during the follow-up review. Eleven recommendations were implemented. For seven other recommendations, progress has been made or recommendations were partially implemented. Recommendations for one finding had not been addressed, and no specific plans had been made to act on the recommendation.
A copy of the progress report is available online here.
For more information, contact:
