State auditor dings Willard for aquatic center costs, accounting records, utility fund controls

December 14, 2010|by KY3 News | newsalerts@ky3.com

WILLARD, Mo. -- Missouri State Auditor Susan Montee says the City of Willard did not plan well enough when it decided to build a new aquatic center in the fall of 2008. That $3 million center opened in 2009 and Montee said in a state audit released on Tuesday that the city struggles to pay for the center and the cost to operate it is more than anticipated.

Montee said in the audit report that the city had to borrow money for the outdoor pool from other city funds as well a bank but it's "unclear when or if the funds loaned to the Park Fund from the General and Water/Sewer Funds and the bank loan will be paid back." The city's financing plan calls for the city to make principal and interest payments for the center for 25 years.

The criticism of the condition of the Park Fund is just one of several items that Montee and her staff highlighted in their special audit of the City of Willard. Montee delivered the audit's findings in a public meeting on Tuesday evening at the Willard Community Building. The audit was done after 490 citizens signed petitions requesting it.

Montee also said the city's accounting and financial records were inaccurate, resulting in the city missing a payment on a loan from Greene County. She also said the city wrote 30 checks totaling about $81,000 when the city didn't have the funds to cover the checks.

Montee also criticized Willard for not soliciting bids for numerous purchases, contracts and services in 2009 and 2010. She also said the city got two bids for water tower maintenance and then "it appears the city renegotiated with the high bidder and entered into a 10-year contract in 2009."

Montee said Willard needs to segregate its accounting duties, and the chief financial officer "did not adequately investigate and resolve unidentified differences" in bank statements and record interest earned on certificates of deposit and money market bank accounts.

Montee also said the city has "significant weaknesses" in controls on its utility system.

"As a result of these weaknesses, there is less assurance all utility monies have been accounted for properly, and utility charges are set at the appropriate level," the audit says.

Montee said her staff found "several instances" last year "where utility service was not disconnected for the Mayor and the Mayor's mother when their payments were delinquent and not made within 10 days." She also said the city has not done a review of water and sewer rates for several years and "The Mayor occasionally waives water and sewer fees for city residents in violation of city ordinance."

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