Leawood Audit Cites Lack of Oversight As A Reason for Loss

The audit report of Leawood was released today online.  In it, findings include over $325K of missing funds from the city between 2002 and 2008 along with confirmation that bank statements provided by the former Village Treasurer Gene Paul Boyd were fabricated.  (Boyd was charged last February with stealing).  The findings do no go back prior to 2002, but the accounts in question date back to 1978.

The audit includes this paragraph describing where the funds went:

Village checks totaling $37,300 were made payable to the former Village Treasurer from the village's official bank account between November 15, 2002, and October 16, 2008. These checks were not approved by the Village Board and according to village officials, signatures on these checks were forged. Additionally, village funds totaling $290,433 were diverted into an unauthorized bank account (unknown to Village Trustees) between November 15, 2002 and October 16, 2008. Disbursements from this unauthorized account included checks totaling $286,660 issued to the former Village Treasurer, $1,604 for bank charges and postage, and $2,169 returned to the village.

The report went on to say that poor accounting procedures and a general lack of oversight by village officials contributed to the loss.

Even an potential nepotism finding was included that stated the Village Secretary, who is also a member of the Board of Trustees, voted to appoint her spouse to fill one of two vacant board positions.

The audit ‘yellow sheet’ can be found here.

Neosho Daily Supports Sheriff's Look Into Finances

Below is a editorial comment from today's (Sunday) NDN.

Neosho, Mo. —

We’re heartened to see that the Newton County Sheriff’s Department is investigating potential criminal violations regarding a transfer from the “bed tax” fund to general revenues in order to make city payroll and other city obligations.

While we’re not attorneys or judges, it is clear that the fund transfer was a clear violation of the intent of the ballot issue voters approved back in 2006, if not of the law itself.

For this conclusion, we needed look no further than the ballot language itself: “Shall the city of Neosho impose a tax on the charges for all sleeping rooms paid by the transient guests of hotels, motels and tourist courts situated in the city of Neosho at a rate of four percent for the sole purpose of promoting tourism?”

Key words in that ballot issue, in case you missed it: “the sole purpose of promoting tourism.”.  Sounds pretty clear to us. If funds are designated solely to promote tourism, then that is what they should be used for. The end. Finis.

But that wasn’t what they were used for. Instead, funds were used to pay city bills.

We understand the money crunch the city is in right now. Times are tough for all of us. We all have had to make sacrifices in order to keep afloat, to rob Peter in order to pay Paul.

But you can’t take money designated for one function, bound if not by law, then by the intent of what voters approved, and use it for another purpose. It isn’t right. It’s a violation of the people’s trust.

The council is slated to meet in a special closed session at 6 p.m. Monday to discuss personnel issues.

We hope some of those issues involve disciplining anyone involved in the fund transfer. But, we realize, the council has the authority only over the city manager, the city attorney and the city clerk.

City council, the eyes of all of Neosho are watching you. Do what’s right.

DAILY NEWS

Newton County Approves 2010 Budget

Newton County officials have approved their 2010 budget with no plans for cuts in service.  After seeing a 4.88% reduction in sales tax revenues in 2009, county officials were forced to eliminate any cost of living adjustments for the new budget year.  Revenue projection for 2010 are ‘flat’ with 2009.

County officials credited their past build up of reserves as the reason the county hasn’t been forced to cut services.

The full article can be found here.

Sam Walton – Where Are You?

25 years ago, Sam Walton launched a new campaign – the “Buy American” campaign to help keep American jobs in America.

As part of the campaign, Walton said: “We cannot continue to be a solvent nation as long as we pursue this current accelerating direction. Our company is firmly committed to the philosophy by buying everything possible from suppliers who manufacture their products in the United States.”

I can still remember seeing the signs displayed in the local Wal-Mart stores promoting how many jobs had be saved by Buying American and the running total that stood in the front of the store tauting the program’s total impact.

As our gov’t leaders (Gov. Nixon and President Obama included) talk about the economic woes we face and work to create jobs and reduce unemployment, I’d encourage them to take another look at the plan Mr. Sam had 25 years ago.  It seems like a good place to start.

Congrats to Shelby

Just a quick note of congratulations to Shelby Cummins for being crowned Neosho’s Basketball Homecoming Queen.  I’ve known Shelby for many, many years and I’m proud of her accomplishment.  She’s a great young lady with a great family.  (And kudos to Dr. Jimmy Ray for his excellent job of escorting.  He didn’t look too nervous.)

Statement on Sheriff’s Investigation

Citizens of this city and of this state and of this country have an expectation that any governmental body that COLLECTS a tax will USE that tax responsibly for the purpose(s) for which it was approved and collected.  This is a fundamental duty and responsibility of government.

Recently, issues have been brought to light concerning the spending of the city’s hotel / motel tax.  Specifically, it has been reported that the city used those funds to help finance their day-to-day operations.  I am concerned that this use may be in conflict with the intended purpose of the tax and therefore be in violation of Missouri statute.

As an elected official, I am sworn to support the provisions of all laws affecting this city.  I felt an obligation and a duty to make the Newton County Prosecutor and the Newton County Sheriff aware of these possible violations.

It is now their responsibility to look into this matter.  I appreciate their willingness to do so and look forward to the matter being resolved.

My Blog is Batting 1000

Since installing Google Analytics over Christmas, I’ve got a much better idea of how many people are visiting the site.  Since Jan 1, I’ve had a 1000 hits by 169 different people.  Those 169 people have looked at 2162 pages of ‘stuff’.

If you like numbers and stats, here are some to file away:

50.5% have come in via DSL

2.3% are using dial up

51.9% are using Internet Explorer

7% are using a mobile phone

72% come straight to the site – no referral

4% come from google.

While I had no expectation going into this, I’ve been quite pleased.  Thanks for stopping by and I hope you are enjoying the posts.

Globe Editorial Cites Need for Trust

Below is the online editorial from today’s Globe:

In our view: Neosho needs trust

The city of Neosho is to be commended for releasing more information to the public in the wake of its confession about the depth of its financial woes.

Unfortunately, the information is only raising more questions, many of them troublesome.

We are troubled that anyone at the city would even consider the possibility of a property tax without a vote of the people. Even if the letter of the law would allow it, we think the spirit of the law and a respect for the citizens demand a public vote.

We are troubled that City Manager Jan Blase can make a statement like: “I’m not convinced the public isn’t liking what they’re seeing.”

The city has laid off people. It has cut its budget and some services. It has misused a state loan and other funds. It has to borrow more money. It faces a financial crisis.

We see no evidence that the people of Neosho like any of this.

The city administration needs to get plugged in to what its residents want. It will need them to get out of this crisis.

A state audit is sorely needed, unfortunately that is going to take some time, and the city needs answers now. The best course for city leaders is absolute transparency, no matter how bad the news. Regaining public trust has to start somewhere.

In our view, it would be wrong, if not illegal, for city leaders to impose any type of property tax now or later without a vote of the people.

Unlike Blase, we are convinced that the people do not like what they are seeing.

Scott Brown – Lessons Can Apply Even Here

As Senator-Elect Scott Brown drives around Washington D.C. in his infamous truck,  Washington democrats are now conceding that the gov’t takeover of health care is all but dead…at least for now.  And what Scott Brown did took many, many months of hard work and dedication.  Even when the winds looked be firmly behind his opponent’s sail, Sen-Elect Brown stuck it out, stayed in the game, and wound up being successful in his bid to go to Washington.  And that success has changed the entire political game in D.C. 

So you ask “So What, Richard?  What’s your point?”  Well, my point here has nothing to do with heath care or Scott Brown, but is more of a lesson to remember.  Brown proved that just when everything seems to be going a certain direction and everyone is assuming it to be a ‘done deal’, along comes someone or something from out of the blue that puts the status quo on its ear.  And it can happen anywhere, not just in Washington, D.C.

So when you think all hope is lost or nothing more is going to be done, remember there may be another Scott Brown our there who is working hard to make a difference.  You just never know what’s around the corner.

First Club Count Reductions in Sam's Club History

This from yesterday’s Retailing Today Newsletter.

By this time next week 10 Sam's Clubs locations nationwide are set to close, marking the first time in the division's 25-year history that its store count has experienced a decline. A certain number of clubs close or are relocated every year, but the reduction was more than offset by the opening of new clubs or relocation of existing units that might otherwise have been closed. That situation changed this year, though, as Walmart corporately became more judicious in the use of its capital budget. As a result, Sam's added only six new units and shifted its focus to improving existing operations by stepping up remodeling efforts. Look for more of the same next year, as plans call for between five to 10 new units and 60 to 80 remodels. Don't be surprised if the company comes in at the low end of the range for new units and the high end on remodels. The clubs due to close next week are located in Nampa, Idaho; Louisville, Colo.; Rolling Meadows, Ill.; Clay, N.Y.; Houston, Phoenix and La Quinta, Vista, Irvine and Sacramento, Calif.

Even strong company’s like Wal-Mart are feeling the pinch in certain areas of the country.

In case you didn't know, Sam's Club doesn't refer to their clubs as 'stores'.  The correct terminology is 'club'.  And they don't have 'customers', they have 'members'.

Band Storage Cabinets Almost Finished

After months of planning, building, and installing, the Neosho High School Band is another step closer to having a new set of storage cabinets for student and school instruments.  Yesterday, a few of my employees and a number of band students installed almost 200 doors and locks on the new cabinets.  Only a few cabinets remain to be delivered.

Rick Rogers and I first spoke last Fall about the need for new storage at the High School (where his wife is the band director.)  Being a former Neosho band member myself, I decided to help.  My company began designing and building cabinets for the band in October.  Until yesterday, those cabinets were more like cubbies, lacking doors and locks.  Now, they look like REAL cabinets.

When completed, the band will have over 200 individual slots to store all shapes and sizes of cabinets.  All of the cabinets were designed and built by my business, Marco Group, and were donated to the High School.  The cabinets are valued at $50,000.

Liking them so much, I’ve decided to market the cabinets to schools around the country.  We will debut our cabinets to the world at the Texas Music Educator Association convention next month in San Antonio.

Joplin Sees Higher Tax Receipts in January

The Joplin Globe is reporting that sales tax receipts in Joplin were up in January.  Compared to January 2008, Joplin saw an increase of $13,000 with payments totaling just under $1.17 million.  Year-to-date, Jopin’s tax revenues are still down almost $96,000 from compared to last year.

Neosho’s sales tax revenues for the year are down from last last year.  If I had January’s numbers, I’d comment on them as well.

The full Globe article is here.

Rec Board Endorses ‘Y’ Plan

Less than a week ago, I went to the local YMCA director to discuss her interest in taking over the summer ball program in Neosho.  That option is now one step closer to reality.

On Monday night, the Neosho Rec Board voted unanimously to recommend the YMCA take over the summer ball program starting for the upcoming season. Last week, city manager Jan Blase announced the city was considering eliminating the program as part of a larger plan to cut costs in the budget.

During the meeting, a group of citizens who had also come forward to run the program threw their support behind the ‘Y’ option and ask that a meeting scheduled next week to discuss their plan be cancelled.

Thanks to everyone who helped make this happen.

Bubble Travel

Ms. Augustine, elementary teacher for Neosho R-5, stands 'inside' a large soap bubble as part of a CIA invention lesson.

Elementary students from the Neosho R-5 CIA program gathered on Sunday to learn about inventions. Other activities included learning about catapults, hovercraft, and how to make cotton candy.

Over 25 students participated in the event.
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For Sale by Owner: Space Rocket - High Mileage - Runs Good

Nasa has lowered the price on their shuttle fleet. Now for just under $29 million, you can be the proud owner of either Atlantis or Endeavour (Discovery is promised to the Smithsonian.) That's quite a discount compared to the original offering price of just over $40 million announced last year.

The shuttles are for sale once their flying days are over, which is scheduled to be this fall.

The lower price is based on NASA's estimate of the cost for transporting a shuttle from Kennedy Space Center to a major airport, and for displaying it indoors in a climate-controlled building.

Potential customers have until Feb. 19 to put in a request.

The engines are available, along with other shuttle artifacts, at no charge...just pay shipping and handling.

60-57 MoSo Ladies Win

The Lady Lions won a close game against the UN-Omaha lady Mavericks.

Great job MOSO!
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Sen Bayh - It's not Just Perception

In today's NY Times, Indiana Senator Evan Bayh (D) was commenting on the close Senate race in Massachusetts.

When ask if the tight race is reflective of a more serious threat to Democrats, Bayh commented "I do think there's a chance that Congressional elites mistook their mandate," Mr. Bayh said. "I don't think the American people last year voted for higher taxes, higher deficits and a more intrusive government. But there's a perception that that is what they are getting."

Mr. Bayh, last time I checked US taxes are higher, the deficit is higher, and gov't is intruding on personal decisions such as health care. Perhaps the word 'reality' is a better choice of words than 'perception'.

Why the ‘Y’?

Putting the YMCA in charge of a sporting program makes a lot of sense to me.  They do it everyday and have the staff and back office support to make it a seamless transition.  I’m hopeful the city staff and the Y can work an arrangement to keep the summer ball program going and give those that support it (parents and sponsors alike) the comfort and security that the program will be run ‘right’ and be a positive experience for all of our kids.

As a parent and coach, I’m all for this.  And based on the calls I’ve received today, it seems like I’m not alone.

Here’s a post from the National ymca.net website:

YMCA Sports Programs

A mainstay of YMCA offerings for young people, Y youth sports programs fill kids' discretionary hours with positive activities and caring adult attention. Coaches -- often volunteers, including many parents -- emphasize teamwork and cooperation over winning at any cost, developing good values over developing the next superstar.

 

Basketball and volleyball, both YMCA inventions, are popular youth programs, as are baseball, softball, T-ball, soccer and progressive gymnastics. Other local options range from traditional sports like tennis and football to such newer inventions as in-line rollerskate hockey and wallyball. Some YMCAs offer programs for people with disabilities. Many YMCAs offer options for adults, too.

No Summer Baseball is a Game Changer

Word on the street today is the city's consideration of not having a city-supported summer baseball/softball/t-ball program in 2010. While the details are still emerging, the issue does raise some valid concerns and some pointed criticisms.

Budget wise, the program on paper shows losing around $50K a year. With the reduced revenues and project overruns detailed earlier in this blog, every cash drain to the city looks to be under the microscope.

As a parent of a t-ball player and a 'corporate' sponsor last year of a team (that sponsorship is a $1000 obligation for a season), I've got my own issues outside of having to look at the city's needs as an elected member of the council.

It is my hope that through a grass roots effort, something can be done to save the programs. In Neosho, summer baseball has been around for decades. Not having that available for our kids doesn't seem like the best option.

I'm going to do my part to 'step up to the plate' so my daughter and 1000 other kids in Neosho have a plate to step up to in May.

(The photo above is from my 2009 coach-pitch softball team.)

Profits Make WiFi ‘Safe’ on Flights

Apparently, the use of WiFi-enabled devices on airplanes is no longer a safety hazard – as long as you pay for the service.  For years, flight crews have required wireless devices be turned off during flight to ‘avoid interference with the plane’s navigational systems’.  But now that GOGO wireless has a pay-for-use service available on American Airlines, that ‘interference’ must not be so concerning and perhaps it was just a bunch of boloney after all.