Follow up audit

The follow-up audit was completed in June, and includes a list of 20 recommendations and if the City has implemented them. Of the recommendations, there were six that had not been implemented, and eight were partially implemented and three that were fully implemented.

The results of the Missouri State Auditor Nicole Galloway follow-up audit for the City of Monroe City have been released. Findings included that the City of Monroe City has put to action some of the recommendations from the previous audit, but still has concerns, according to the recent follow-up audit report. Mayor Jerry Potterfield stated, “The audit is pretty cut and dry. The state is very confident in what they do. The thing the people need to understand is how it got this way. It’s been a good ole boys club for years. As long as we keep voting council members in who don’t understand finances we can’t get any better.”

One recommendation that had not been implemented was the transfer of monies from the electric, gas, water and sewer funds to the general fund in the amount of $741,936 during the year ending September 2020. Mayor Potterfield explained, “The City is designed to provide services, not fund a golf course and swimming pool. We have overfunded departments and the council is not willing to cut expenses.” The City spends $100,000 per year to provide the town with a swimming pool. “We are paying now dearly for a sewer plant that was ignored for years, we have over a million-dollar’s worth of utility poles that need to be replaced.”

Another recommendation, not implemented was the Real Estate Transactions and Economic Incentives. The audit states the city failed to have ordinances approved for financial incentives granted to two businesses. The city has not developed plans, including a cost-benefit analysis, for the use of city-owned property. In addition, the city did not obtain an independent appraisal prior to the sale of land for $125 to a school district in February 2021.

The audit also noted staffing issues, explaining the City Clerk is filling the job duties of two job titles, City Administrator and City Clerk, since the City Administrator left employment in September of 2020. The City Clerk indicated to the auditors that the city does not currently have sufficient staffing to adequately segregate duties.

The follow-up audit was completed in June, and includes a list of 20 recommendations and if the City has implemented them. Of the recommendations, there were six that had not been implemented, and eight were partially implemented and three that were fully implemented.

Recommended for you