2019 audit found Lincoln County town in poor financial condition, made several recommendations to city officials to address the problems
JEFFERSON CITY, Mo. — State Auditor Nicole Galloway today released a follow-up report on the city of Silex, located in Lincoln County. An audit released in November 2019 found the city was in poor financial condition and made several recommendations to city officials to address the problems. The follow-up report showed the majority of the audit’s recommendations have been implemented or are in progress and most of the others are partially implemented.
The balance of the city’s general fund declined in recent years, and the audit found city officials had subsidized city operations by transferring the majority of revenues from restricted utility funds. The audit recommended the Board of Aldermen ensure any transfer of restricted funds are done properly, a recommendation found to have been partially implemented.
The audit also recommended the Board receive detailed financial data monthly, perform long-term planning, and closely monitor and take necessary steps to improve the city’s financial condition. Implementation is in progress, but the city’s financial condition and current economic uncertainty keep the Board performing any significant long-term planning.
The Board did not pass a budget for the year ending Dec. 31, 2020, but published financial statements and submitted the legally required financial report to the State Auditor’s Office.
The audit also recommended better oversight of the city’s accounting processes. This includes better monitoring of bank accounts and payments, as well as ensuring money is properly tracked and deposited. Those recommendations have either been implemented, partially implemented, or are in progress of being implemented. The city also is implementing recommendations related to weaknesses in its utility system.
The follow-up report evaluated 19 total recommendations and determined eight had been implemented, six were partially implemented and four were in progress. The recommendation on preparing an annual budget had not been addressed.
A complete copy of the report is online here.
