YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

The City of St. George's year end balance at December 31, 2001, was inaccurately reported.� The monthly report indicates a year-to-date balance of $2,182,759, while the actual balance was only $63,700.� The discrepancy was due to an error in the formula used to calculate the year-to-date account balance.� The City Treasurer's report is approved by the Board of Alderman.� Although the overstated balance was obvious, it was not detected, which lends questioning to the thoroughness of the board's review. 

The City/Court Clerk received several raises during her term of office.� The Missouri Constitution states that compensation to municipal officers shall not be increased during a term of office.� In addition, state law mandates that the salary of a municipal officer shall not be changed during the time for which he was elected or appointed. 

The city has a credit card that is used primarily for internet service, office supplies, and city-related travel expenses.� During the year ended December 31, 2001, the city used the credit card for approximately $4,800 in expenditures.� Several charges for hotels, meals, office supplies, etc. had no supporting documentation retained or the only documentation available for the purchase was a signed charge slip.� Copies of the itemized vendor invoices were not retained. 

A St. George city ordinance states disbursements that exceed $1,000 shall be competitively bid; however, city personnel were not aware of this policy.� City personnel indicated the decision of whether to solicit bids for a particular purchase was made on an item-by-item basis.� Bids were either not solicited or bid documentation was not retained for $40,367 for trash service, $7,451 for insurance, and $1,183 for radar equipment. 

Former Mayor Cullen was elected in April 1998 to serve a four-year term, but he resigned in March 2001.� At that time, Alderman Lorino was appointed mayor and during the April meeting Paul Tillman was appointed to fill the alderman position.� Former Alderman Strathmann was elected in April 1999 to serve a four-year term, but he resigned in August 2001.� At that time Mayor Lorino appointed Karen Krebeck to fill the alderman position.� Neither alderman position was placed on the April 2002 ballot.� State law requires that if a vacancy occurs in an elective office, the mayor and the board of aldermen are required to appoint a successor who serves until the next regular municipal election.� 

Christmas payments totaling $850 and $725 were paid to appointed city officials and employees in December 2000 and 2001, respectively.� A city ordinance indicates all appointed officials are to receive a "cash Christmas payment" of $25 and full-time police officers are to receive $100.� It is unclear whether these payments represent bonuses.� Bonuses appear to represent additional compensation for services previously rendered and violate the Missouri Constitution.� The Board of Aldermen should consider simply increasing the salary of these personnel to avoid the appearance of granting a bonus. 

The board regularly conducts closed meetings.� Minutes were not prepared to document the matters discussed in closed meetings, and board minutes did not always indicate the reasons for closing the meetings.� State law requires specific reasons for a closed meeting to be announced publicly at an open session. Additionally, city ordinance indicates a motion must be made at an open meeting to hold a closed meeting and said motion must state the purpose of the closed meeting. 

Also included in the audit are recommendations related to payroll and personnel, timesheets, accounting controls, street monies, expenditures, budgets and financial reporting, fixed assets, board minutes and policies, restricted revenues, and the Municipal Division. 

Complete Audit Report