Report No. 2009-27
March 2009
Complete Audit Report
The following findings were included in our audit report on the Mountain Grove Special Road District.
A number of transactions, which gave the appearance of a conflict of interest, were noted and the district did not retain documentation to show how these purchases had been bid or price comparisons had been completed.
The district does not have formal bidding policies, and bids were not solicited for various purchases. Vendor invoices or other supporting documentation was not retained for 11 of the 40 disbursements reviewed totaling $89,223. District checks were not always signed by the president or vice president and the secretary/treasurer of the board as required by state law, and checks are regularly signed in advance by the special road district commissioners. The district loaned an employee $2,002 to purchase a used dump truck from the district, in apparent violation of the Missouri Constitution.
The district considers the secretary/treasurer and assistant secretary to be independent contractors; however, it appears these individuals should be treated as employees. Employee paychecks are not kept in a secure location prior to distribution. The district has not established a personnel policy to address various personnel issues.
The district's 2008 and 2007 budgets were not accurate and complete, and the 2008 budget was not approved by the board until March 2008. The road district does not furnish disbursement information to Wright County for publication of the road district's financial statement. An annual maintenance plan has not been prepared to document expected work on the district's roads and bridges, and the district has accumulated a significant cash balance without any specific documented plans for its use. The district does not maintain a listing or map of public roads under its legal authority, and as a result, it is unclear which roads the district is responsible for maintaining. In addition, the district performed maintenance on two private roads.
The district does not have formal written policies regarding the sale and installation of culverts, and it has not evaluated whether the price charged to district residents is sufficient to cover the cost of installation. Records are not maintained to document culverts sold to ensure amounts are billed to applicable residents, and inventory records are not maintained to account for supplies and materials purchased or stored for the daily operations of the district.
Also included in the report are additional recommendations related to disbursements and payroll, and recommendations related to accounting controls and procedures, oaths of office and candidate filing for elections, Sunshine Law compliance, and property procedures and records.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
