Report No. 2011-83
October 2011
Complete Report
Findings in the audit of the City of North Kansas City
Financial Condition
The financial condition of the General Fund has declined significantly, with the fund balance falling from almost $7 million to $2.8 million from fiscal year 2008 to fiscal year 2010 and is expected to decrease further during 2011. The city is taking steps to balance expenditures and revenues and is transferring monies from the Gaming Fund to supplement the General Fund.
LiNKCity
Operational costs of the city's fiber optic data network (LiNKCity) have significantly exceeded operational revenues, and the city's investment of $13.5 million for the LiNKCity network may not be an effective use of city resources. A business performance plan said the original plan outlined, "expectations and assumptions that are neither realistic nor attainable." The city should evaluate whether it makes sense to continue investing public funds in the system.
Disbursements
The city pays more overtime than required by law because it counts nonworking (leave) hours when determining overtime. Overtime paid in fiscal year 2010 totaled $432,500. In fiscal year 2010, the city paid over $56,000 in vehicle allowances for 24 city officials and employees. The City Council voted in July 2011 to stop paying vehicle allowances for elected officials, but it is still making such payments for 11 city employees.
In the areas audited, the overall performance of this entity was Good.*
American Recovery and Reinvestment Act 2009 (Federal Stimulus)
The City of North Kansas City was awarded $138,517 and received $125,752 through the Edward Byrne Memorial Justice Assistance Grant Program. It spent $18,619 for law enforcement equipment, and passed through $107,133 to Clay County and the cities of Gladstone, Excelsior Springs, and Liberty.
*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
