An audit finds Cape Girardeau's finances in good shape, but the recession is taking a toll
Cape Girardeau's finances are in good order and the annual audit found very few issues of concern, the Cape Girardeau City Council was told Monday evening. The council accepted the report from Beussink, Hey, Roe, Seabaugh and Stroder LLC showing the city had about $522,000 in unrestricted general funds and $4.1 million in emergency fund reserves required by the city charter. There were no "significant deficiencies or material weaknesses" in accounting for or reporting on spending of city money according to Jeff Stroder with the firm that oversaw the audit work. The audit did find that the city's financial position is good yet the ongoing recession creates concerns. For the year ending June 30, the city spent $487,037 more from the general fund than the $19.12 million in revenue the fund received. The shortfall was made up from unrestricted reserves and transfers from other funding sources. Sales tax receipts, the biggest source of money for the general fund, fell $135,831, or 1.56 percent, which was $347,774 less than budgeted. The city's bank accounts hold enough money for existing claims and potential emergencies, but its financial condition is still less than desirable.
The audit also found that the city was not screening contractors for projects financed with federal grants to make sure the contractors were not barred from receiving federal funds. The city will begin checking those contractors against a list of banned companies beginning in January. See more details from Rudi keller in the SE Missourian
Written By: kzim
Date Posted: 12/22/2009 11:23 AM
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