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YELLOW SHEET Office of the State Auditor of Missouri |
August 24, 1999
Report No. 99-59
Some problems were discovered as a result of an audit conducted by our office in response to petitioners from the Village of Pascola, Missouri.
On March 23, 1998, the village purchased the former Pascola Elementary School building and surrounding property for $11,000. According to board members, the purchase was primarily made to ensure that the owner would not locate a junkyard on the site. The board has not established a plan to utilize the property. The building, in its current condition, creates a significant risk for the village. It is also doubtful that the village has sufficient unrestricted revenues to repair and maintain the property. We recommend the Board of Trustees establish a plan for the use of the school property, ensuring the property is adequately insured against loss, damage, or liability and that revenues are sufficient to repair and maintain the property, or consider getting rid of the property.
The village has not prepared or adopted annual budgets, published semi-annual financial statements, or submitted annual financial reports to the State Auditor's Office for fiscal years 1996 and 1997, as required by state law.
No notices are posted for meetings held during the year. The board only meets when village business needs to be discussed. During the last three years, the minutes indicate the board has met a total of four times. State law requires notices (including tentative agendas) to be posted in a prominent place which is easily accessible to the public, at least twenty-four hours in advance of the meeting.
The board does not sign the minutes to approve them and the minutes do not include a list of bills approved for payment.
In 1998, the village received approximately $4,700 in motor vehicle-related revenues from the state. The village has not established a separate fund or accounting for these revenues and the related expenditures to ensure these revenues are used only for the purposes allowed by the constitution. Since street-related expenditures are normally less than motor vehicle receipts each year, it is important to establish adequate records to track the unexpended balance.
Village officials have not been elected to office in compliance with state law. The village only holds elections every other year, electing all five members of the Board of Trustees at the same time to the same two-year terms of office. To ensure compliance with state law and to provide for continuity on the board, staggered terms of office should be established and elections of applicable board members should be held each year.
We recommend the village consider appointing separate individuals to the positions of Village Clerk and Village Treasurer. If this is not possible, at a minimum, procedures for an adequate independent review of the record keeping functions should be established.
