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City of Sparta Given "Poor" Rating in State Audit

Nicole Galloway
MO State Auditor's Office

Missouri State Auditor Nicole Galloway says her team has found serious financial concerns in Sparta.  She met Wednesday with residents to discuss the results of an audit of city operations. According to Galloway, the audit was initiated by a petition of citizens and raised serious concerns related to the city's finances and management policies.

Auditors found a city in financial distress, Galloway says, with a number of public funds in poor financial condition. For example, she says the city's police fund carried a negative balance for at least five years and owed more than $200,000 to other city funds. The audit found Sparta's park and general funds are also in weak condition. Auditors determined the board of aldermen had failed to monitor the city's budget and were unaware of the severity of the financial challenges facing the city, resulting in actual expenses exceeding budgeted amounts by more than $90,000. 

Galloway’s office found that failure to address problems first raised by a private accounting firm in 2013 also contributed to the city's issues, including significant transfers among city funds and a lack of oversight of clerks' accounting work. Auditors found the city maintained 20 bank accounts, which they say created “cumbersome and sometimes inaccurate records.”

Because the city received a "poor" rating, a follow up review will be conducted next year.

Michele Skalicky has worked at KSMU since the station occupied the old white house at National and Grand. She enjoys working on both the announcing side and in news and has been the recipient of statewide and national awards for news reporting. She likes to tell stories that make a difference. Michele enjoys outdoor activities, including hiking, camping and leisurely kayaking.