05/03/2021
Missouri State Auditor
Nicole Galloway today released a citizen-requested audit of Excelsior Springs,
located in western Missouri. The audit, which received an overall rating of
"fair", recommended improvements to several of the city's financial
practices to make sure taxpayer dollars are used effectively.
"Taxpayers asked
for this audit to ensure the city is utilizing their dollars as efficiently as
possible," Auditor Galloway said. "My report details several areas
that can be improved. I appreciate the city's responses, which indicate they
are working to address these concerns."
Both the city's airport
and golf course have been operating at a loss and have relied on advances from
the city's general operating fund. During 2018 and 2019, the city subsidized
the golf course with over $500,000 in city funds. That number was reduced to
$94,000 in 2020, after the completion of a new clubhouse and other amenities.
From 2017 to 2020, the
airport received $36,000 in advances from the general operating fund to prevent
deficit balances. Storage rates at the airport are not supported by a cost
study and have not been updated recently. Additionally, the airport facility
has several unused hangers and a building which, if repurposed, could offset
operating costs.
The audit recommended
the city continue to closely monitor the financial status of the golf course
and airport and work to minimize losses.
The audit also
recommended better processes when allocating administrative costs. The city
makes monthly transfers from 13 restricted funds to the city's general
operating fund to support administrative and other indirect costs. City
personnel could not explain how they determined the amounts allocated to the
various funds and have not prepared a cost allocation plan since 2011. The
audit recommended that the city ensure those allocations are based on specific,
documented criteria.
Additionally, the audit
recommended better oversight of accounting processes in several areas and
identified lack of competitive bidding for some city services. The audit also
found that penalties for late utility payments were improperly recorded in the
city's general operating fund, a practice that had been ongoing for many years.
The city should ensure these penalty payments are recorded in the proper,
restricted fund and only used for allowable purposes.
The complete audit of
the City of Excelsior Springs, which received an overall rating of
"fair" is available here.