YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

The City of Trenton has not periodically solicited proposals for audit and legal services. From May 1, 2000 through April 30, 2003, the city paid an outside law firm approximately $36,000 for various work related to tax increment financing and various other issues.  The city could not provide documentation indicating why the City Attorney could not handle these legal issues.  In addition, the city did not obtain bids, as required by city policy, for five purchases totaling almost $30,000.

The purpose of many credit card expenditures, especially travel expenditures, was not documented.  Credit card expenditures totaled $21,899 for the year ended April 30, 2003. In several instances, the only documentation available was a signed charge slip and no detailed invoice was provided.  In addition, the city needs to establish policies for meal expenses for employees while not on travel status and meal expenses for non-city employees.

The City Council did not adequately document its decisions related to a housing demolition project.  The council accepted the overall low bid of $75,500.  At the February regular session council meeting and in spite of the original low bidder's objection, the City Administrator told the council the project would be rebid.  In March the City Council voted to accept new low bids on the project totaling $94,820.  The Council's decision to reverse its previous decision and re-bid the project was not adequately documented.

The city's current procedures do not ensure payroll and other expenses are allocated to the proper funds.  Each employee's salary or wages are paid from one fund regardless of how each employee's duties and functions overlap the various city services.  Proper allocation of expenses is necessary to ensure the electric, water, and sewer rates are sufficient to cover the cost of providing the service without generating profits to subsidize other city services.

The city spent approximately $4,700 in travel and other expenses for three marketing trips, two to California and one to Florida.  Reports were not prepared to summarize the activities of the trips or to document how such efforts have enhanced economic development for the city.

The City and municipal utilities have not established comprehensive travel policies outlining what types of expenses are allowed, limits on those expenses, documentation requirements, and the review process, as follows:

• It is the city's informal policy to allow employees traveling for city business to charge one personal telephone call per day to the city.  However, the city has not established any cost or time limits for such phone calls.
• The city has not established maximum limits on meal expenses, and some meal expenses incurred by city employees appeared excessive.
• The city requires receipt slips or invoices be turned in for all travel expenditures, including meals.  Credit card charge slips, rather than detailed receipt slips or invoices, were submitted for several meal expenses.
• Formal expense reports, including the date of trip, purpose, origin , and destination, were not always prepared or were not always complete and accurate.

The city and municipal utilities do not have written policies regarding the use of approximately 60 vehicles and related equipment.  In addition, the city does not report taxable benefits associated with city vehicles used for commuting purposes.   During the year ended April 30, 2003, nine management-level employees were assigned vehicles which they all used for commuting purposes.  IRS guidelines require the full value of the provided vehicle to be reported on the employees' W-2 forms if the employer does not require the submission of detailed logs, which distinguish between business and personal usage.

The compensation of the City Attorney is not clearly defined by ordinance or contract.  During the year ended April 30, 2003, the city paid $30,504 in base compensation, plus $1,008 in additional services billed by the City Attorney for drawing up contracts, promissory notes, deeds, etc. for the city.  Based on the city's ordinance, it appears the City Attorney's duties include attending to any and all legal matters of the city when requested to do so.  Therefore, it is unclear whether the City Attorney should bill for any additional services. 

The audit also includes some matters related to employee leave records, capital improvement sales tax fund, the asphalt plant, a land purchase, and budgets and financial statements upon which the city should consider and take appropriate corrective action. 

Complete Audit Report