10/27/2023 - Jefferson City, MO
A report
released today by State Auditor Scott Fitzpatrick finds Chariton County has
failed to craft accurate budgets, which has led to a multi-million dollar fund
balance that Fitzpatrick says could be used to lower taxes for county
residents.
The audit,
which gives the county a rating of "good," finds the county has
amassed a significant cash reserve with no documented plans for its use and
minimal efforts to reduce revenues by lowering the property tax rate. As of
December 31, 2022, the GR Fund balance for the county was nearly $8 million,
which is the equivalent of approximately 4.6 years of funding based on current
levels of operating disbursements of the fund. The audit points out that even
with the significant accumulated GR Fund balance, the County Commission
continues to assess a property tax rate that results in more than $600,000 in
property tax collections each year with no documented long-term plan for the
use of this money.
"I
understand the county has seen an influx of one-time federal funds, but county
officials have also crafted inaccurate budgets that have caused their fund
balance to balloon to nearly $8 million," said Fitzpatrick. "The
enormous fund balance in the county's general revenue fund represents a great
opportunity for the commission to lower the tax burden on the people of
Chariton County. These dollars are better off in the hands of the people and
businesses of Chariton County rather than in the county's coffers."
Specifically,
the County Commission's failure to craft budgets that reasonably reflect the
actual amount of disbursements the county will make each year is the main
factor causing the budgets to be unreliable. For the years 2020 through 2022,
the Commission significantly overestimated disbursements by more than $4.3
million in total. The audit notes that this approach to budgeting is misleading
to the public and paints an inaccurate picture of the county's financial
condition.
Also
highlighted in the report are concerns with the County Commission approving
mid-term salary increases for the Sheriff, which violate constitutional
provisions, and the need for improvement with controls and procedures in the
Sheriff's Office. The audit recommends the implementation of adequate
receipting and depositing procedures, and the preparation of monthly bank
reconciliations and lists of liabilities in the Sheriff's office.
Other
findings include a failure by the Prosecuting Attorney's Office to assess or
collect the statutorily-required fees from defendants who owe court-ordered
restitution, and the need for improved controls and procedures for the three
fuel tanks maintained by the county.
The previous
audit of Chariton County completed in 2016, which also received a rating of
"good," is available here.
A complete copy of the current audit is available here.