Missouri State Auditor Nicole Galloway today released her audit of the City of Orrick, in Ray County. Residents of Orrick 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.
Auditors found that the city’s accounting controls and procedures need improvement. Accounting duties are not adequately segregated and documented supervisory or independent reviews over various financial accounting functions are not performed. Additionally, the city clerk did not issue receipt slips for all money received nor prepare a deposit summary or receipt ledger to document all payments received. Proper segregation of duties or documented independent reviews help ensure all transactions are accounted for properly and assets are adequately safeguarded. Receipting and depositing procedures reduce the risk of loss, theft, or misuse of money. The city agreed and the board of aldermen and mayor are implementing independent reviews of accounting and bank records. The city clerk has begun issuing written receipt slips for all payments.
The audit also found that the board violated Missouri law by approving year-end bonus payments to all city employees. The city paid $3,425 total in year-end bonus payments from December 2018 through December 2021. Payments for services previously rendered violate Article III, Section 39(3), of the Missouri Constitution. The city also made a bonus payment to an attorney working under a verbal agreement with the city. Missouri law requires political subdivisions to put contracts in writing. The city agreed with the Auditor on the need to have a written contract with the attorney and on the need to stop paying year-end bonuses to city employees.
City officials also adopted audit recommendations regarding compliance with the Sunshine Law, the requirement to prepare a complete city budget, electronic records retention, and cybersecurity for city computer systems.
A complete copy of the audit report is available by clicking here.
