(From State Auditor Scott Fitzpatrick)An audit report released this week by Missouri State Auditor Scott Fitzpatrick gives the Newton County Collector's Office a rating of "good." Pursuant to Section 52.150, RSMo, the State Auditor is required to conduct an audit once notified of a vacancy in the office of county collector. The audit was triggered by a vacancy that occurred in the office when James Otey resigned on July 12, 2024.
"The people of Newton County can feel confident the county collector's office is being run in a transparent and accountable manner. However, there are improvements that can be made in that office and a few others as they work together to administer the county's property tax system. Our report contains recommendations that can help county officials to make needed improvements and I'm glad to see they are already working to put them into place," said Fitzpatrick.
The report finds the financial activities of the County Collector were not being adequately reviewed by the County Clerk, County Auditor, and County Commission. Neither the County Clerk nor the County Auditor maintained an account book or other records summarizing property tax charges, transactions, and changes as required by state law. The report notes an account book would help the County Clerk and County Auditor ensure taxes charged and credited to the County Collector are complete and accurate, and could also be used by the County Clerk, County Auditor, and County Commission to verify the accuracy and completeness of the County Collector's annual settlements and delinquent tax books.
The report also finds the County Clerk does not prepare or verify the accuracy of the current or delinquent tax books. The County Collector reviews the tax books for accuracy, but the report notes this effectively amounts to reviewing her own work. Because the County Collector is responsible for collecting property tax money, good internal controls and state law require someone independent of the collection process be responsible for generating and testing the accuracy of the tax books. Additionally, the County Collector, County Assessor, and County Clerk do not always retain records of changes (e.g., additions and abatements) entered into the property tax system.
The audit report also highlights the fact the county budgeted a deficit fund balance for the Tax Maintenance Fund (TMF) for the year ending December 31, 2024. When considering the beginning fund balance and the budgeted receipts and disbursements, the county projected an ending fund balance for the TMF of negative $39,323. The Missouri Constitution, Article VI, Section 26(a), and Section 67.010.2, RSMo, require political subdivisions to ensure expenditures do not exceed revenue plus any unencumbered fund balance.
The final finding in the report addresses the failure by the County Collector's office to maintain the change fund at a constant amount. A cash count of the County Collector's office completed in June 2025 indicated the change fund was $1,800, split among the 5 cash drawers held within the office. An additional $197 was also found in a bank bag locked in the County Collector's desk drawer and the County Collector stated she was not sure of the purpose of the money, but it may have been part of the change fund. According to a memorandum of understanding dated November 16, 2016, the Newton County Commissioners established a cash fund for the County Collector to be set at $900. The report notes maintaining change funds at a constant amount and periodically counting and reconciling to the authorized balance is necessary to safeguard against possible loss, theft, or misuse of money.
The complete audit of the Newton County Collector and Property Tax System can be found here.
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