Early Tuesday morning the Missouri State Auditor’s office released their findings in an audit of the City of Silex.
This audit was requested by many of the the City of Silex residents during the previous administrations control and was from Jan. 1 2018 to Dec. 31, 2018.
The report stated that the areas audited received a overall performance of “poor”.
What does that mean?
The audit results indicate this entity needs to significantly improve operations. The report contains numerous findings that require management’s immediate attention, and/or the entity has indicated most recommendations will not be implemented. In addition, if applicable, most prior recommendations have not been implemented.
Financial Condition: The General Fund is in poor financial condition. This problem is not expected to improve significantly in the immediate future.
Budgets and Financial Reporting: The Board does not have adequate procedures to prepare or monitor budgets. The financial statements have not been published for the year ended December 31, 2018. City officials did not file timely annual financial reports with the State Auditor’s Office as required by state law. The city has not obtained annual audits of its sewer system as required by state law.
Restricted Funds and Recording Financial Transactions: The city uses restricted monies to finance general operations of the city. The city does not have controls and procedures to ensure revenues and disbursements are accurately and consistently recorded.
Disbursements: Significant improvement is needed in the city’s disbursement documentation and review procedures. The city reimbursed unreasonable and/or unnecessary purchases made by city personnel while attending a training seminar. The city does not have procedures to adequately monitor fuel card accounts and fuel use to detect unauthorized use. City officials did not always solicit bids or proposals as required by city policy. The city did not prepare and file 1099-MISC forms with the Internal Revenue Service, as required, for legal services received for the year ended December 31, 2017.
Accounting Controls and Procedures: The Board has not adequately segregated accounting duties or ensured a documented supervisory or independent review over various financial accounting functions is performed. Controls and procedures over bank accounts and reconciliations need improvement. The city does not maintain adequate records of spring and fall event monies received, and as a result, the city cannot ensure all monies collected are accounted for and deposited.
City Procedures: The Board did not swear in the mayoral candidate elected on April 3, 2018, or comply with a subsequent Prosecuting Attorney’s order for the appointed mayor to resign. The combination of the positions of City Administrator and Police Chief violates state law and creates a potential conflict of interest.
Payroll and Related Issues: City officials did not ensure payroll taxes were paid as required and some compensation was reported on employee W-2 forms. The city’s personnel policy does not adequately address overtime and established policies are not always followed. Employment records for employees are not complete.
Utility System: City officials do not reconcile the total gallons of water billed to the gallons of water pumped, and as a result, significant differences are not investigated. City water deposits charged do not comply with city ordinance. City procedures for discontinuing services and receiving partial payments do not comply with city ordinance.
Ordinances: City ordinances are not codified or complete.
Police Department: The Police Chief has not established adequate controls and procedures over seized property. The police department has not developed adequate procedures to account for the numerical sequence of tickets and the ultimate disposition of manual tickets issued.
Maintenance Plan: City officials have not developed a formal annual maintenance plan for city streets.
Assets: Controls and procedures over city property need improvement.
(The Elsberry Democrat will have responses and more online and in next week’s issue.)
LINK TO FULL REPORT: