12/08/2021
Missouri State
Auditor Nicole Galloway today released her citizen-requested audit of the City
of Homestead Village, a small community near Excelsior Springs in Ray County.
This audit was initiated when qualified voters in the village gathered the
required number of petition signatures to trigger an audit under Missouri law.
Auditors identified at least $4,348 in
customer sewer payments recorded as received but not deposited by the former
City Clerk from January 1, 2018, to December 31, 2020. At least $4,228 of the
missing amount was recorded by the clerk as being received in cash, but was not
deposited in the bank. In addition, the former clerk falsified her own 2019
customer ledger by indicating payments occurred on her account when they had
not. Based on the timing and amounts of missing money, it is likely additional
money is missing in periods prior to January 2018.
The
report cites a lack of segregation of duties, inadequate controls and the
absence of oversight by the Board of Alderman as a contributing cause in
missing money remaining undetected for so long. Galloway's audit recommends
that the Board of Aldermen work with law enforcement regarding prosecution of
the missing money and take the necessary actions to seek restitution.
"The
former City Clerk betrayed her position of public trust. It is encouraging that
city officials have committed to work with law enforcement to hold the former
City Clerk accountable," Galloway said. "My office is prepared to
assist them in any way they need because the taxpayers of Homestead Village
deserve competence and accountability from their municipal government."
Auditors
identified a general lack of accounting controls and oversight throughout
village government, which contributed to the sewer payments going missing. The
City Clerk is responsible for most financial duties in the city, but the Board
of Alderman needs to perform better oversight according to the report. Board
members indicated they were reviewing some financial records of the city, such
as bank statements, but failed to implement significant reviews of depositing
functions.
A
complete copy of the audit report, which resulted in a rating of
"poor," is available here.
