(JEFFERSON CITY, MO) – State Auditor Susan Montee released three reports on the audit of the City of St. Louis. These reports looked at the City of St. Louis Office of Comptroller, Department of Parks, Recreation, and Forestry, and City of St. Louis Office of Treasurer.
The Comptroller’s Office processes approximately $13.5 million through its payroll computer system each pay period. The 1970’s era payroll computer system does not provide the information necessary to efficiently operate the city and is heavily reliant on manual processes. In addition, the 1980’s era financial computer system utilized by the Comptroller’s Office does not provide the information necessary to efficiently operate the city. Of the eleven city offices contacted, eight maintain additional separate financial records because the city’s system does not provide adequate information. The Comptroller used a city-owned vehicle for commuting purposes and did not report the commuting mileage as additional compensation. Also included in the audit report are recommendations related to revenue maximization, capital asset controls and procedures, and federal travel advances.
The Forestry Division is not adequately documenting adjustments and write-offs made in the billing system. The employees who authorized and posted the adjustments or write-offs are not identified and the reason and supporting documentation are not maintained. An administrative fee of 10 percent is added to each customer’s bill for handling the billings of the Department of Public Safety, Building Division; however, the Forestry Division had no documentation to show how the administrative fee was determined and does not have written authorization to charge this administrative fee. Further, the Forestry Division has not entered into a written agreement for grass cutting, weed maintenance, and debris removal on property owned by the Land Reutilization Authority and the Parks Division performed grass cutting services without charge for a not-for-profit organization, which is prohibited by the Missouri Constitution. Also, some emergency purchases did not appear to meet the city’s definition of “emergency” and the department does not have one individual responsible for approving emergency purchases. It appears the department may be using emergency purchases to circumvent normal city purchasing procedures.
The Treasurer’s Office is comprised of the Treasury Division and the Parking Division. At March 10, 2008, city funds held by the Treasurer’s Office totaled approximately $41 million in bank accounts and $292 million in various investments. The Parking Division had not ensured a developer complied with contract terms regarding invoices, documentation, and payment for the Euclid/Buckingham garage under construction. As of December 31, 2007, the Treasurer’s Office had paid the developer $3 million of the $4 million contract for construction; however, billings and payments to-date significantly exceeded the actual construction progress. Additionally, the Treasurer’s Office does not have a formal procurement policy. Costs were incurred during the eighteen months ended December 31, 2007, for some professional services without soliciting competitive bids/proposals, including legal services, financial advisory services, investment management services, feasibility studies, and engineering services. The Treasurer’s Office did not execute formal written contracts for these legal services, engineering services, and feasibility study services as required by state law. Payments made to the contractor responsible for processing parking tickets during the eighteen months ended December 31, 2007, totaled about $2.7 million. The Treasurer’s Office does not adequately verify the contractor’s monthly billings and the contract was amended in March 2005 to provide additional bonuses while requiring no increased services. Further, vehicle usage/maintenance logs are not complete and the review of fuel usage is not adequately documented.
