Petition Audit Follow-Up Report

University City appears to be making progress in fixing problem areas highlighted in , according to the state auditor's office.

significant financial mismanagement by University City and a handful of Sunshine Law violations.

Members from the state auditor's office were in U City last month to do a follow-up report on the audit findings, and see if the audit recommendations were being implemented. 

"I am pleased that our follow-up program is promoting increased transparency and accountability across the state of Missouri," said State Auditor Tom Schweich in a news release

The state auditor's office identified several areas that needed immediate management attention in the April 2011 audit report. The follow-up team assigned a status for each of the following recommendations:

Trash Service Billing and Collection: In Progress
Cost allocation and Administrative Transfers: Implemented 
Accounting Controls: Implemented, In Progress
Minutes, Meetings and Public Records: Implemented
Emergency Plan: In Progress

Trash Service Billing and Collection:
The audit found that U City had more than a million dollars in uncollected trash service fees. 
Status: In Progress (Auditee has begun to implement and intends to fully implement the recommendation).
Follow-Up Report: While the balance of past- due accounts has not changed significantly since the audit report, city officials stated the city has taken steps to encourage timely payment, and created additional options for residents to pay their bills, such as;

• automatic bank drafts. 
• development of an online payment option
• low-income program.
• City issued a request for proposals and will contract with a collection agency to further assist with outstanding accounts.
• City has updated its trash billing statements and delinquency notices to be more informative to residents.

Cost Allocation and Administrative Transfers: 
The audit found over $900,000 in unsupported allocations. Some expenses were allocated to functions based on estimates without documentation of how the allocation was determined.
Status: Implemented (Auditee fully implemented the recommendation, either as described in the report or in a manner that resolved the underlying issue).
Follow-Up Report: The city said it now has written procedures in place for determining various allocations and has integrated the updated allocations into the fiscal year 2012 budget.

Minutes, Meetings and Public Records:
Concerns were noted with procedures regarding closed City Council meetings, the failure to maintain a log of public record requests, and the retention of auxiliary minutes.
Status: Implemented
Follow-Up Report: According to city officials;

• only one closed session has been held since the audit
• U City provided documentation showing notice was properly posted
• City Council entered closed session after properly voting to do so
• Minutes of the meeting reflect both the votes and the reason for entering closed session
• City Clerk now maintains log of public requests
• According to the City Clerk, all minutes of meetings of affiliated boards, committees, and commissions are submitted to her office and copies of the minutes are posted to the city website.

When contacted by Patch for comment on the auditor's follow-up report, University City Mayor Shelley Welsch said she was pleased that the State Auditor and his team had recognized the "excellent" work of City Manager Lehman Walker and his staff in following up on the state audit recommendations in a timely fashion.

"Under Mr. Walker’s leadership, the City staff is working hard to put our City on a more professional footing, and I believe the State Auditor’s follow-up report is recognition that they are succeeding in this effort," Welsch said. Walker expressed a similar sentiment to U City Patch. “In less than 5 months University City has made considerable progress in implementing the recommendations of the State Auditor.

Councilmember Stephen Kraft (Ward 1) said he welcomed the state audit recommendations, that make sure taxpayer money is handled more responsibly. "I am especially encouraged that the City is taking steps to collect $1.6 million of unpaid garbage bills that have accumulated over the last 10 years."

However, Paulette Carr, the chief petitioner for the audit, was not entirely satisfied with the auditor's follow-up findings.

"It does not appear the State Auditor's office was very thorough in examining whether the city has actually rectified some of the problems identified in the audit. The auditors simply commented on the update sent to them by the city," said Carr. "I find the follow-up to be less than promised and it looks as if many of the problems originally cited still exist."

Click here for the follow-up on the audit findings.