State audit gives lowest rating to city of Purcell

Jun. 10—PURCELL, Mo. — The city of Purcell received a "poor" rating in a recent audit by state Auditor Nicole Galloway, who in a statement Thursday pointed out weaknesses in the city's government that led to the theft of nearly $2,600 in taxpayer funds by the former mayor pro tem.

Galloway on Thursday released the audit, which gives the city the lowest rating and offers recommendations for better managing finances.

"Our audit found a lack of oversight and segregation of duties by the former Board of Aldermen in Purcell that directly contributed to public funds being misappropriated," Galloway said in a statement. "The current board has their work cut out for them to restore the trust of the residents there, but the audit gives recommendations on each finding for the board to implement. I urge board members to quickly move forward with those recommendations."

Carl "Bud" Crease, formerly a Ward 3 alderman, was elected mayor of Purcell in April. Crease told the Globe on Thursday that the board began implementing several of the state auditor's recommendations earlier this year.

"We've taken care of most of the recommendations, and we started that at the beginning of the year while I was still an alderman," he said.

Theft from city

Former Mayor Pro Tem Nancy M. Wilson was charged in Jasper County Circuit Court in May 2021 with stealing $2,588. At least $3,233 in city funds was misappropriated or missing from Feb. 1, 2021, to April 12, 2021, according to the audit.

The audit report states that Wilson improperly issued herself four checks totaling $1,988, withdrew $400 in cash from the city bank account, issued a $200 check to a city vendor that she endorsed and deposited into her personal bank account, issued a $500 check to an individual that was cashed and the proceeds then divided evenly between the individual and Wilson, recorded improper adjustments to her utility account, failed to bill herself for utility and trash services and failed to deposit at least $165 in city cash receipts.

Wilson was removed from office by a vote from the Board of Aldermen on April 12, 2021. She pleaded guilty in January of this year and was placed on two years of unsupervised probation and ordered to pay the city restitution of $2,588, according to court records.

"We have worked with law enforcement. Restitution in the amount of $2,588 has been received. We will be writing off the remaining $480 the former mayor pro tem owes," the city of Purcell said in its audit response.

But the audit found the Board of Aldermen did not provide adequate oversight or segregation of duties over financial accounting functions, such as monitoring the city's financial activity or requiring dual signatures on checks.

In addition, the city did not obtain an annual audit of the combined waterworks and sewerage system, as required by state law, and the mayor and board members who signed checks and had access to bank accounts were not covered by a bond, the state audit found.

"We have put appropriate measures in place so the board is informed of what is being done and how money is allocated," the city of Purcell said in its response. "Bank statements, accounts payable reports and aged billing reports are given to the board on a monthly basis for full transparency, as well as any adjustments that are to be approved by the board. Carbon-copied and numbered receipt slips have also been put in place. There are three authorized signers on the checking account, and two signatures are required on all checks. We are in the process of obtaining bids to seek an audit of the water and sewer system."

According to report findings, the Board of Aldermen also didn't adequately monitor city finances and wasn't in a position to make financial decisions that could strengthen fund balances. The city failed to prepare complete annual budgets or monitor budgets, file annual financial reports timely, publish semiannual financial statements in compliance with state law or maintain a street maintenance plan, the audit said.

The audit recommended that the board ensure it receives detailed financial data monthly, perform immediate and long-term planning, and closely monitor and take necessary steps to improve the city's financial condition.

Petition process

The state auditor's office was petitioned to audit the city in November 2020 and secured city records in March 2021, due to allegations that records might be removed from City Hall or destroyed, the audit said.

Under Missouri law, the state auditor's office can audit any political subdivision of the state if enough qualified voters of that political subdivision request the audit. The petition gained 84 signatures, with only 64 signatures required by state law for a town the size of Purcell. The city, about 15 miles north of Joplin in Jasper County, has a population of 318.

Galloway's office announced that the audit was launched in July 2021.