01/26/2022
Missouri State Auditor Nicole Galloway
today released an audit of the city of St. Louis Streets Department. The audit
is part of the on-going comprehensive audit of the city of St. Louis
government. The city Streets Department includes divisions of refuse, traffic
and lighting, street maintenance, and the city's towing operations.
Auditors found that the Towing Division's
accounting controls and procedures needed significant improvement. After
finding discrepancies in an initial examination of two months of accounting
records, auditors expanded their review of both towing and auction receipts.
Auditors found incorrectly recorded receipts for 96 auctioned vehicles and 49
towed vehicles. Towing Division personnel were unaware of the discrepancies
until auditors discussed the issues with them. Inadequate record-keeping and
poor reconciliation procedures increased the risk that loss, theft, or misuse
of money could have gone undetected and that accounting records contained
errors. Department personnel indicated new procedures had been implemented to
address the issues.
Discrepancies were also found in a review of scrap metal sales
by the Refuse Division. Refuse Division personnel weigh sold scrap metal at a
transfer station and record the net tonnage before it is given to the buyer.
The buyer then weighs the scrap metal using the buyer's scales and makes a
payment based on that weight. For example for one invoice reviewed, auditors
found the weight recorded from the buyer's scales was 2,000 pounds less than the
weight recorded at the transfer station. The audit recommended division
personnel reconcile the weight calculations for scrap sales and
investigate significant differences.
The audit also recommended that the Traffic
and Lighting division perform an annual physical inventory of capital assets;
improve permitting procedures; and refer individuals with amounts due for
damages to lights, light poles, or other damages to the City Counselor's office
in the required timeframe.
A complete copy of the audit, which gives a
rating of "fair," is available here.
