Report No. 2011-12
March 2011
Complete Report
Findings in the audit of the Fortieth Judicial Circuit, City of Lanagan Municipal Division
Missing Funds
Municipal division receipts totaling at least $521 were received but not deposited. In addition, certain records could not be located, and it is possible additional funds are missing. The Court Clerk quit in February 2010, and, in September, just after audit staff's initial visit, the City Clerk abruptly quit. The lack of adequate controls and oversight allowed missing funds to go undetected. The City of Lanagan Municipal Division and city officials should work with law enforcement regarding the missing funds and records.
Accounting Controls and Procedures
Significant weaknesses were identified with accounting controls and procedures which increases the risk of theft or misuse of funds. The Court Clerk received and deposited monies with no supervision or review. The municipal division did not account for the numerical sequence of receipt slips, receipt slips issued by the city were not reconciled to court receipt records, and monies collected by the city were not transmitted timely to the municipal division. Receipts were deposited approximately once a month.
Some records related to the receipt and disbursement of funds could not be located. Moreover, certain records regarding the disposition of some court cases could not be found. The municipal division lacked adequate procedures for collecting monies due on tickets and did not maintain adequate records of such monies due. It is possible the municipal division is owed thousands of dollars for unpaid tickets, and it should work to determine the amount owed and develop a collection plan. The Court Clerk did not prepare a monthly case list and file it with the city as required by statute, so the city could not effectively monitor the municipal division. The municipal division did not submit all fines and costs collected to the city as required by law; instead, the municipal division paid salaries and other expenses out of its bank account before remitting the balance to the city. In addition, some checks issued against the municipal division bank account had only one signature, but two signatures are required.
The municipal division should maintain backup copies of computer programs and data and store them at an offsite location to prevent the loss of accounting and other records. The Court Clerk and City Clerk were not bonded. Adequate bonding for employees who handle money is important, because the municipal division could be made whole by the bonding company if funds are mishandled.
Municipal Division Procedures
The municipal division needs to improve its procedures relating to case dispositions, license suspensions, and tickets. The municipal division failed to adequately document the disposition of, and maintain a docket or backer sheet for, each case as required by Missouri Supreme Court rule. The prosecuting attorney did not sign all tickets processed by the municipal division, which is also required by rule The police department and the municipal division do not adequately account for the numerical sequence of traffic tickets issued. As such, it is not possible to determine if all tickets issued are properly submitted for processing.
In the areas audited, the overall performance of this entity was Poor.*
American Recovery and Reinvestment Act 2009 (Federal Stimulus)
The Fortieth Judicial Circuit, City of Lanagan Municipal Division did not receive any federal stimulus monies during the audited time period.
*The rating(s) cover only audited areas and do not reflect an opinion on the overall operation of the entity. Within that context, the rating scale indicates the following:
Excellent:
The audit results indicate this entity is very well managed. The report contains no findings. In addition, if applicable, prior recommendations have been implemented.
Good:
The audit results indicate this entity is well managed. The report contains few findings, and the entity has indicated most or all recommendations have already been, or will be, implemented. In addition, if applicable, many of the prior recommendations have been implemented.
Fair:
The audit results indicate this entity needs to improve operations in several areas. The report contains several findings, or one or more findings that require management's immediate attention, and/or the entity has indicated several recommendations will not be implemented. In addition, if applicable, several prior recommendations have not been implemented.
Poor:
The audit results indicate this entity needs to significantly improve operations. The report contains numerous findings that require management's immediate attention, and/or the entity has indicated most recommendations will not be implemented. In addition, if applicable, most prior recommendations have not been implemented.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov