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City of Seymour Audit Results Released

Missouri State Auditor Nicole Galloway has given the city of Seymour the lowest possible rating in a citizen-requested audit released Wednesday.

According to the state auditor's office, the report found numerous weaknesses in the city's operations and financial condition, and gave a rating of "poor."

The audit found the city's utility operations, electric, water and sewer services, heavily subsidized the general fund of the city.  The Board of Aldermen transferred substantial amounts from the three utility accounts to the city's general fund--more than $560,000 in fiscal year 2017.  These transfers, according to the auditor's office, represent the majority of operating income from the utiilities and indicate that utility rates may be higher than necessary.

In addition, the city administrator granted reduced utility charges or even waived the charges as economic incentives, without approval by the board.

The audit also found that under the city code, tax-exempt 501(c)(3) entities are not billed for monthly sewer charges.  That violates the missouri Constitution, which specifically prohibits counties, cities or other political subdivisions from granting public money or things of value to any corporation, association or individual.

The audti found numerous internal control weaknesses, lax controls ovder disbursements, a lack of financial reporting to the board and a lack of monitoring by the board, according to the report. 

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.