State auditor reveals results for Ozark

Ozark is a city going through a classic case of growing pains, according to State Auditor Susan Montee.

Montee released the results of a yearlong city audit, launched by citizen petition, at a presentation Tuesday night.

Most of the issues that were identified are related to documentation. These included a lack of formal bidding for procuring some services worth more than $5,000, as stated in the city charter, and lack of proper appraisals for certain land purchases.

Some of those issues were tied to the Finley River Neighborhood Development District, the city's first major redevelopment project. Montee said the Land Clearance for Redevelopment Authority, created to oversee the declaration of blight in the district as well as the redevelopment project, has not filed a required annual report since September 2005. She also said the project has been marred by delays and lack of sufficient funding, which could have created financial hardship for the city, though she said financial difficulties have not actually happened.

Montee did say she was impressed with the way the city has responded to the items in the report, adding that many of them were already being addressed before the audit began.

The audit process cost about $60,000 to complete, Montee said, but because the state had given a cost estimate of $20,000-$30,000 before beginning the audit, the city will only be charged $30,000.

City Administrator Steve Childers said that, while the audit found no fraud or criminal activity, he thinks it was a worthwhile process. The city already is working on a comprehensive employee manual and has adopted an internal control policy to handle some of the issues presented, he said.

"It's a risk analysis," Childers said. "For the most part, we can tighten up the ship and implement policies and procedures where they weren't before. We're implementing an employee manual, and we've adopted an internal control policy."