The city of Greenville has checked off about half of a long list of improvements needed to ensure better control of its finances, according to a report out Wednesday from the Missouri State Auditor.
The changes were recommended after a former city clerk was accused of misappropriating more than $150,000.
Pamela S. Birmingham of Silva will appear Monday before a Wayne County judge for a case review on felony charges of receiving stolen property and forgery. Birmingham has been free on bond since shortly after charges were filed in July 2018.
“We’ve paid all of our bills. We’ve got things going the right way now,” said Mayor Carroll Rainwater.
The cash reserve has been rebuilt, the city will run a bond measure in August to make repairs to the sewer system and is in the process of repairing streets and equipment, Rainwater continued.
Rainwater was among several new members of the Board of Aldermen elected in April 2016.
Birmingham was fired the same month and an investigation began into city finances.
It revealed the city was close to bankruptcy, officials said at the time, with many bills unpaid.
By May 2016, aldermen revealed the city had more money in a donation fund for the Fourth of July fireworks than in the account to run its police department.
Birmingham has been accused of writing herself several checks without proper authorization, out of various city bank accounts.
Greenville has reduced its number of bank accounts from 18 to seven, according to the auditor’s office, one of several recommendations that have been implemented.
The current city clerk reported there were no overdraft or minimum balance fees from August 2018 to December 2018.
The mayor and a board member also now periodically review check registers and bank statements of city accounts, although the review was not documented in December 2018, the auditor noted. The city began documenting the reviews after that visit by auditors, the clerk reported.
Checks are now required to be signed by two board members, which the December 2018 review confirmed.
The number of transfers between city accounts has been reduced to only necessary transactions, with no unauthorized small dollar amounts in the period audited. Utility receipts were deposited in the correct bank accounts for that period.
Birmingham is accused of overpaying herself nearly $80,000 and of unlawfully giving herself a uniform allowance.
Law enforcement says Birmingham falsified disbursement listings presented at monthly meetings in an attempt to conceal 75 improper disbursements totaling more than $25,000.
Birmingham has also been accused of failing to deposit at least $42,000 in cash receipts.
City officials have partially implemented steps to maintain receipt records, according to the audit.
More work needs to be done in this area, auditors say.
“Receipt slips were not issued for some hall rental and dog pound fees collected, and some utility payments received in December 2018 were not posted to the utility system timely with two of these payments not posted as of March 2019,” the report states.
City officials say since the December visit they are now retaining the utility report and documentation of the deposit.
More work also needs to be done regarding refundable utility deposits held in the water bank account.
The city has not accounted for customer utility deposits paid prior to March 2016, or resolved the shortage identified in the audit.
The city’s records of paid utility deposits has been maintained since April 2016, auditors report.
Other items identified for improvement include:
Implemented
• Work with law enforcement regarding criminal prosecution of improper payments and other activities that occurred prior to April 2016.
• Obtain bond coverage for all personnel with access to city money.
• Retain records in accordance with state law. Auditors report some records were recovered by city officials from a city dumpster after the termination of the former city clerk.
• Improve control of city court records. The former city clerk served as court clerk. Officials say several case files could not be located by the municipal division and some manual receipt books were not retained. Court functions were limited in 2018, according to auditors, with only one ticket issued during the year.
• Properly issue a receipt and deposit money from court proceedings.
In progress
• Select an independent auditor to complete an audit of the waterworks and sewerage system for the year ended June 30, 2018.
• Adopt an employee handbook that addresses overtime, holidays and other items.
• Determine compensation and payroll taxes were properly withheld. The city clerk indicated the board plans to amend the former city clerk’s W-2 forms once the criminal case is concluded.
Not implemented
• Use prenumbered forms for merchant and liquor licenses, gathering hall and festival booth rental fees. The city clerk does not reconcile the related monies collected to deposits.
• Oversight of municipal division. For the only ticket issued during 2018, there was no documentation the municipal judge approved the final disposition of the case.