Missouri State Auditor Scott Fitzpatrick released his audit of the City of Cuba, located in Crawford County. Residents of Cuba requested the audit through the petition process. The report, which gave a rating of “fair,” notes that city officials are already working to implement a number of the recommendations.
“At the request of the citizens of Cuba, the State Auditor’s Office began the audit process with the goal of identifying any inefficiencies and recommending improvements that will allow the city to better serve its citizens,” said Auditor Fitzpatrick. “I’m pleased to see city officials have indicated they are moving forward with our recommendations. The citizens of Cuba deserve a city government that is accountable and transparent, and the audit findings will help the city implement policies and procedures to meet that goal.”
Auditors found the city has not established adequate procedures to ensure transfers from the Electric and Natural Gas Funds to the city’s General Fund are reasonable and used for intended purposes. City officials indicated the transfers were made to cover budget shortfalls in the General Fund. The Board of Aldermen indicated it will continue to monitor the transfers to ensure they are properly justified, documented, and authorized.
The audit identified inadequate procedures to prepare city budgets and adequately monitor the city’s financial condition. In accordance with the recommendations made in the report, the Board of Aldermen indicated it will ensure detailed financial data is received to adequately monitor and prepare budgets that contain all information required by state law.
The audit found the city did not solicit proposals for professional services, including economic development services, city attorney and legal services, and engineering services. Based on the recommendations in the audit, the Board of Aldermen responded that it will work to better monitor and solicit all contracts for professional services and update the city code to include competitive selection.
Additionally, the audit found the city did not adequately document why the Waste Water Treatment Plant Manager was considered an independent contractor. After the manager’s retirement, he entered into an agreement with the city to continue the duties he performed before retirement and the city changed his classification from employee to independent contractor, but the city did not adequately document the reason for the change. The Board of Aldermen responded to the audit by indicating it will ensure all persons hired by the city are properly classified as employees or contract employees in compliance with state and federal laws.
Auditors also identified that city officials sold merchandise and consigned goods without the knowledge or approval of the Board of Aldermen. These activities took place without proper oversight from the Board. In response, the Board of Aldermen has ceased all sales of merchandise on consignment at the visitor center.
A complete copy of the audit is available here.
