State audit of Pleasant Hope reveals inadequate controls

The Missouri State Auditor's Office revealed the findings of its audit of the city of Pleasant Hope on Wednesday night, and among the red flags were conflicts of interest in city transactions, lack of documentation and an inadequate bidding system for city projects.

The petition-driven audit covered the entire year of 2008, according to State Auditor Susan Montee. Among the findings:

• Several transactions with businesses owned by an alderman or an alderman's relatives constituted potential conflicts of interest, including nearly $44,000 in business with a construction company owned by an alderman's father and more than $2,400 of auto repair work at a company co-owned by another alderman.

• Several items purchased last year were not put out for bid, including $12,000 in water line repairs and $25,000 for engineering services related to a new bridge.

• Some purchases did not have receipts or vendor invoices, creating the possibility for nonbusiness purchases or improper payments.

• The city doesn't have adequate policies to ensure city money is properly allocated and that restricted funds go only to their intended purpose.

• Incomplete and inaccurate budgets for 2008 and 2009, including no budget summary for 2009 and no beginning and ending estimated fund balances.

The full audit report is available at the link below.