Report No. 2009-63
June 2009
Complete Audit Report
The following findings were included in our audit report on the City of St. Louis, Department of Streets.
At least $1,210 in permit fee collections could not be accounted for properly and appear to be missing, and additional amounts may also be missing. These missing funds were not detected on a timely basis due to various internal control weaknesses including accounting duties in the Director's office are not adequately segregated, there is no independent oversight related to receipts, and the method of payment and date received are not recorded on some receipt slips. Receipt slips are not issued in numerical sequence, and the numerical sequence of receipt slips issued is not accounted for properly. Some receipts are not transmitted to the City Treasurer's office in a timely manner. In addition, procedures are not established to properly document, investigate, and resolve daily cash overages and shortages. The office does not maintain documentation of daily overages/shortages to determine if there is a pattern which should be investigated. Also, some receipt and transmittal documentation maintained by the Director's office accountant was poorly organized and maintained. The department does not account for the numerical sequence of permits issued, has not established adequate procedures related to the issuing of permits, and does not reconcile permits issued to monies collected and amounts transmitted.
At least $1,380 in towing and storage fee monies could not be accounted for properly and appear to be missing, and additional amounts may also be missing. By not providing adequate oversight, the division placed funds at risk. Several control weaknesses allowed the missing monies to go undetected. The method of payment is not recorded on the towing tickets or the daily receipt ledger, thus the composition of receipts cannot be reconciled to the composition of transmittals to the City Treasurer's office. In addition, the division does not obtain information from the City Treasurer's office documenting the composition of transmittals. The division does not adequately document monies received for vehicles auctioned. As a result of making cash refunds for overpayments of towing and storage fees paid by debit card, transmittals to the City Treasurer's office are not made intact. The division does not adequately document approval and the reason why some allowable charges for towing and vehicle storage services are reduced and not collected. The division does not have a written policy and procedure for the distribution of excess auction monies. A $200 administration charge is assessed on each vehicle sold to cover the costs of labor and paperwork involved in auctioning a vehicle; however, no documentation of costs or how this fee was determined was available, and the fee is not adequately recorded in the division's accounting records. The division does not have written procedures concerning the handling of damage claims and claims are not adequately documented.
Some emergency purchases did not appear to meet the city's definition of "emergency." In September 2007 and January 2008, the department purchased traffic signal detection devices totaling approximately $433,000, to be used at heavily traveled intersections to help improve traffic flow. A solar powered trailer was purchased for approximately $18,000 in May 2007. These purchases were made in conjunction with the closing of Interstate 64/40 in the St. Louis Metropolitan Area; however, the extensive advance planning of this project should have given the department enough time and notice to purchase these items through normal city purchasing procedures.
The department does not have a written policy concerning the sale of road salt. There is no written documentation of how the sale price was determined for the salt. The sale price on certain dates was not consistent between various entities. In addition, while the sale of salt to other political subdivisions low on salt can be viewed as necessary due to a public safety issue, it is unclear if the department has the legal authority to sell salt to landscaping and construction companies. Also, the department did not withhold and report sales tax from the sale of salt to these companies.
The department does not turn over old accounts receivable balances to a collection agency or the City Counselor’s office in a timely manner and does not properly follow up on old outstanding paving and sealing invoices.
The department has not documented how fees charged for several permits were established or determined. The department has not recently updated the annual excavation fee charged to three large companies that have elected to pay a flat annual fee. Fees were not consistently charged in accordance with the established schedule for sidewalk permits.
The department does not adequately document changes to and approval of street paving and sealing invoices mailed to contractors. Some invoices are not mailed to the contractors in a timely manner for street paving and sealing work.
Records and monitoring procedures for vehicles and equipment are not sufficient. The department does not require vehicle usage logs be maintained for its vehicles and does not regularly monitor the fleet to ensure vehicles are used efficiently and effectively. The Street Division uses 16 pool/on call vehicles for commuting purposes but does not report commuting mileage to the IRS as compensation.
The audit also includes recommendations related to the 50/50 Sidewalk Program, the school crossing guard program and petty cash funds.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
