Bob Foos
State Auditor Scott Fitzpatrick on Monday released his citizen-requested audit of Carterville, including the suggestion that the City Council take a more active role in monitoring the city’s finances.
According to a press release from the auditor’s office, the audit has identified “multiple city funds in the City of Carterville with a negative balance because of the failure of city officials to adequately monitor the municipality’s financial condition.”
Overall, Fitzpatrick gave the city a fair rating, with multiple recommendations.
The audit was launched after 203 residents signed a petition requesting it.
“The good news for the people of Carterville is that we’ve given the city a roadmap for how to improve and it seems like city officials are taking our recommendations seriously,” Fitzpatrick said. “For everyone who signed the petition to initiate this audit, take pride in the fact your efforts will hopefully result in some much-needed changes to how your city government operates.”
The audit particularly cites the water and sewer fund, which as of Oct. 31, 2024, had a negative fund balance of $634,029 for the year. The water and sewer contingency fund had a negative fund balalce of $24,839, and the capital improvement fund had a negative fund balance of $5,013.
Besides water and sewer rate increases in December 2025, the audit “recommends the city take additional steps to address the financial condition of the city’s water and sewer fund in both the immediate and long-term future.
The audit also including the following:
• There were no adequate procedures to prepare or monitor budgets. City officials did not include all statutorily required elements in the budget prepared for the fiscal year ended October 31, 2024.
• The city council does not adequately monitor budget-to-actual receipts and disbursements, and actual disbursements exceeded budgeted disbursements for eight of the 10 city funds during the year ended Oct. 31, 2024.
• Budget amendments for these funds, as required by state law, were not prepared.
• Not knowing it was inappropriate, the city paid approximately $3,600 in bonuses to employees in November 2023, in violation of the Missouri Constitution.
• City officials could not provide supporting documentation for two disbursements totaling $1,206.
• City officials did not solicit bids for playground equipment totaling $7,200, road salt totaling $5,800, and a salt spreader totaling $5,000.
• The city failed to obtain annual audits of its waterworks and sewerage systems, as required by state law.
• Mileage records for police department vehicles were inadequate in tracking the on-duty mileage and commuting mileage from officers’ homes to the city.
• Closed meeting minutes were insufficient and not compliant with the Sunshine Law.
• Controls over the city’s computers were insufficient.
• The electronic communication policy was inadequate.
• Records of capital assets were inadequate, including office furniture in city hall and the police department, and equipment used by the public works department.
You can read the entire audit report online.
