Report No. 2010-102
August 2010
Complete Audit Report

Findings in the audit of the Fortieth Judicial Circuit, City of Neosho Municipal Division

Accounting Controls and Procedures
Accounting duties are not adequately segregated. In addition, the municipal division's bank accounts require two signatures on each check; however, the Court Clerk uses the Municipal Judge's signature stamp on some checks. The Court Clerk also uses the Municipal Judge's signature stamp on some court dockets after case dispositions are recorded. The Municipal Judge does not document her review and approval of the use of the signature stamp by the Court Clerk. Bank reconciliations for the municipal division accounts are not always performed in a timely manner. In addition, the Court Clerk did not retain monthly lists of outstanding checks and liabilities to fully document the monthly bank reconciliations. The municipal division also maintains an unidentified balance in an old inactive bank account. The Court Clerk makes numerous adjustments to her bank reconciliations due to credit card transactions, and she has not investigated the differences and made the appropriate corrections to the accounting records in a timely manner. Credit card processing expenses totaling $648 were paid from the municipal division bank accounts on June 30, 2010, and have not been reimbursed by the city. Also, the Court Clerk, Deputy Court Clerk, and Municipal Judge are not bonded.

Liabilities
The Court Clerk does not review liabilities to ensure monies on hand are disposed of in a timely manner.

Traffic Ticket Accountability
Neither the city Police Department nor the municipal division adequately account for the numerical sequence and ultimate disposition of traffic tickets issued.

Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov