YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

As of December 31, 2000, at least $10,096 of bond monies and $1,990 of bond processing fees collected in the police department, was not transmitted to the city for deposit.  In addition, records related to fees collected for police reports, and prosecution refusals were not sufficient to determine the amounts of monies collected and not transmitted.  The misappropriation was not detected due to numerous internal control weaknesses and little or no independent review. 

Bond monies transmitted to the city were deposited in the city’s bond escrow account, and the bond forms given to the court clerk.   In August the Court Clerk and City Office Manager sent a memorandum regarding missing bond monies to the Police Chief and the Administrative Aide responsible for making the transmittals.  The memorandum identified approximately $4,500 of bond monies that had not been received by the city/court for defendants who had appeared in court and presented bond forms for refund or payment of fines and costs.  The Police Chief indicated that he personally repaid this $4,500, but took no further action.  Additional memoranda were sent in November 2000.  Some changes were made in the bond collection procedures and the Police Chief indicates he was investigating the matter. 

Information gathered during our review has been turned over to the St. Louis County Police Department and Prosecuting Attorney’s office.  The board should review the situation and take the necessary actions to obtain reimbursement of the missing monies and work with law enforcement officials regarding any criminal prosecution. 

The city has not disbursed $13,500 (the state’s portion) of Crime Victim’s Compensation and Peace Officer Standards and Training Commission fees collected, and neither the Police department nor the court maintain adequate records to account for tickets assigned and issued, and the ultimate disposition.  Information noted in the case files does not always agree to the court computer system, police department records of active warrants did not always agree to the court records, and the Court Clerk could not locate many case files and court dockets.  In addition, required records of convictions on traffic offenses are not forwarded to the Missouri state Highway Patrol. 

Receipts are not deposited on a timely basis. 

·        Fine and cost receipts during January and February 2000, which totaled approximately $11,000, were not deposited until June 2000. 

·        Approximately $5,000 in bond monies were held by the city for more than three months before they were deposited and a total of $12,805 in undeposited bond monies, dated as far back as October 15, 1999, were on hand at December 31, 1999.  In addition, several deposit errors were noted resulting in $890 of bond monies that were never deposited. 

The Treasurer’s monthly reports are not delivered to the board in a timely manner.  For example, the July monthly report was presented to the board in October.  As of January 26, 2001, the reports for October and later had not been completed.  A timely, complete and accurate financial report is necessary to keep the board informed of the financial position of the city. 

Capital improvement sales tax monies are being spent on non-capital improvement items, and law enforcement training fees are not accounted for separately or maintained in a separate fund. 

Several disbursements were made during the year ended December 31, 2000 that do not appear to be a prudent use of public funds.  Examples include flowers for funeral arrangements and get well plants ($531), retiring employee party expenses ($155), telephone calls to a psychic service ($119), and items for fruit baskets ($25).  When this was brought to the city’s attention, city personnel indicated they would seek reimbursement for the telephone calls to the psychic service. 

The city’s residents have place a fiduciary trust in their public officials to spend tax revenues and fees in a necessary and prudent manner.  Disbursements for other items could be funded through an employee contribution fund or association.