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Audit: Sparta in ‘financial distress’

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Missouri Auditor Nicole Galloway’s office yesterday knocked Sparta in an audit giving the municipal government the lowest possible grade, noting the city is in “financial distress.”

Initiated by a petition of residents, the audit found concerns related to the city’s finances and management polices, according to a news release.

“My team found serious financial concerns in Sparta, combined with too few procedures to ensure taxpayer money is managed responsibly," Galloway said in the release. "We've outlined a number of necessary steps to better protect citizens' resources and help city officials create stronger safeguards."

The audit of the Christian County town 26 miles southeast of Springfield found Sparta:
    •    carried a negative balance in its police fund for at least five years and owed more than $200,000 to other city funds;
    •    failed to monitor the budget accurately, resulting in actual expenses exceeding budgeted amounts by more than $90,000;
    •    lacked an employee manual and did not comply with established ordinances, resulting in inconsistent treatment of employees and potential violations of state and federal employment laws;
    •    made errors in payroll calculations leading to inaccuracies in employee payroll and leave balance records;
    •    did not follow city code when soliciting bids for major purchases and failed to comply with the state’s prevailing wage law in overseeing capital projects and expenses;
    •    engaged in an apparent conflict of interest and lack of documentation in accepting a bid that was not the lowest received for a project; and
    •    had cybersecurity weaknesses and Sunshine Law compliance issues.

Responding to the critical issues laid out in the audit, aldermen and staff of Sparta said they’re aware of the various financial situations and are working to correct the issue by repaying obligations. Officials also said the board in November established new accounting polices; the board and mayor would personally ensure all transactions are correct; and staff would put measures in place to follow state budget laws and monitor and track project costs appropriately.

Since Sparta received a “poor” rating, the auditor’s office will conduct a follow-up review next year, according to the release.

In July, Galloway’s office issued Sparta’s municipal court the second-worst audit grade, largely due to negligent record-keeping procedures, improper fees, incomplete case files and data security weaknesses.

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