Auditor gives Kimberling City second-worst rating

Missouri Auditor Nicole Galloway yesterday issued Kimberling City a “fair” audit rating, the second-worst rank given by the office.

Among findings in the audit, Galloway’s office found that when the city had significant turnover in 2013 and 2014 for the positions of accounting clerk, administrative assistant, city treasurer and city clerk, its board of aldermen did not adequately monitor the work of the positions. The board also did not enforce an established segregation of duties, and thus, they were not followed, according to a news release.

According to the audit, the board violated the Missouri Constitution in 2013 when it agreed to a retirement proposal to pay the former police chief $25,000 for services performed during the three years prior to retiring. Additionally, the board gave the green light to $423.50 in 2014 to pay a police department detective serving as acting police chief without authorizing the extra compensation prior to the performance of the extra duties. The audit report also points to the city clerk, who did not accurately ensure payroll taxes were deposited on time, resulting in nearly $2,000 in penalties and interest by the IRS.

The auditor also docked the city for:

• not using an independent financial adviser when it sold $3.75 million in bonds in May 2013;
• not soliciting competitive bids for such services as insurance and computer software;
• rescinding a contract for auditing services and then immediately awarding said contract to the new city treasurer’s former accounting firm;
• failing to comply with state law by inaccurately recording city budgets, annual financial statements and excess revenue from traffic violations; and
• not reconciling customer utility deposit balances with city accounting records, which led to a shortage of $10,794 as of May 31, 2014.

"By requesting this audit, the citizens of Kimberling City have shown they care greatly about their city, their government and how its operations affect their fellow citizens," Galloway said in the release. "This audit is not just about pointing out problems, it's about identifying solutions that will improve efficiency and operations for the city and its residents."