YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

The Village of Jacksonville was awarded federal assistance totaling approximately $559,000 from the Department of Economic Development (DED) under the Community Development Block Grant (CDBG) program for the rehabilitation of houses and improvement of the village's street drainage system in August 1999.  We noted that the village nor the grant administrating agency required invoices to be submitted to support payments to each contractor.  Both the village and the grant administrating agency relied solely on the estimated cost sheets prepared by the contractor.  In addition, the village paid additional costs totaling $7,600 including approximately $1,000 in additional inspection fees due to disputes concerning the quality of work performed on two of the house rehabilitation projects.  

The Mayor of Jacksonville was paid $500 on May 21, 2001 to serve as a drainage supervisor.  The Board of Trustees indicated that the CDBG required a member of the board to perform the duties of a drainage supervisor; however, the grant administrating agency and the DED indicated  that this was not required by the grant.  This service was not bid and supporting documentation was not maintained to support this payment.  This payment also represents a potential violation of state law.  In addition, due to the above concerns the village should consider contacting the DED and obtaining a single audit. 

The Board of Trustees issued temporary use permits for land owned by the village to both a citizen and a member of the board in September 2001.  The Board of Trustees did not obtain a legal opinion to support their decision.  These temporary use permits appear to violate the Missouri Constitution.  In addition, the individuals are using the property in for-profit ventures and are paying no rent to the village nor did the village receive anything of value in exchange for the village's granting of the temporary use permit.  

In December 2001, the village purchased seven and a half acres of railroad property for $5,000 to be used by the village for park activities.  The village also incurred $1,200 for a survey and $2,277 in attorney fees to acquire and to settle disputes concerning this property.  A review of this transaction disclosed that the village did not request or obtain an independent appraisal prior to the purchase of property.   In addition, the village did not perform a formal review or a cost study of future costs to prepare the property for use as a park or of other property that could have been considered for purchase by the village. 

The budgets for the years ended June 30, 2002 and 2001, showed only anticipated revenue and expenditure activity. In addition, budgets were not prepared for the Sewer Replacement Fund, the Sewer Reserve Fund, the Fire Department Fund, the Community Developmental Block Grant Fund, and the Fire Department Grant Fund.  

The audit also includes some matters related to expenditures, financial statements, ordinances and board meetings, accounting records and procedures, restricted revenues, and property records, upon which the village should consider and take appropriate corrective action.

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