MO Auditor releases report after charges filed against former Greenville, MO city clerk

MO Auditor releases report after charges filed against former Greenville, MO city clerk
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WAYNE COUNTY , MO (KFVS) - The Missouri State Auditor released a report after the former Greenville City Clerk in Wayne County, Missouri is was charged with corruption.

According to Missouri Auditor Nicole Galloway’s report, a criminal investigation revealed former Greenville City Clerk, Pam Birmingham deposited checks written to herself from the city, cash, and other unrelated checks into a personal bank account. Auditor Galloway said the investigation showed she spent $62,416 from this account on various personal items.

An audit of the City of Greenville, found more than $160,000 missing from city funds according to Galloway's report. The audit resulted in criminal charges filed by the Attorney General’s Office this summer.

Galloway said the report shows improper payroll and other payments, improperly cashed checks and missing cash over a more than two year period. The activity occurred while Birmingham performed the financial accounting functions for Greenville.

Nearly $70,000 collected for utility and municipal court payments were not deposited in city bank accounts from Jan. 1, 2014 through April 14, 2016. Only $2 in cash was deposited into city utility accounts during this period, according to the report.

Galloway’s report notes $39,000 in checks issued from various city accounts and made payable to the City of Greenville were improperly cashed, endorsed or negotiated by the former clerk. Birmingham also provided falsified records to the board to conceal almost $26,000 of the improper payments and make it appear some of the checks were appropriate. There were also frequent transfers between banks accounts in an effort to conceal account shortages according to the report.

About $44,000 in over-payments on checks issued to Birmingham were found by Auditors along with cash withdrawals made for payment of wages that were inconsistent with timesheets and past city records and practices. Galloway’s report said Birmingham received an increased rate of pay without documented approval from the board of aldermen and received excess compensation when she appeared to have been out of state and not at work.

Other improper payments to the former clerk included $3,000 in improper uniform allowances and $5,000 in reimbursement checks and cash withdrawals with no supporting documentation.

Concerns about the former clerk were first identified by the city in 2016 resulted in her termination.

Galloway’s report said Missouri State Highway Patrol officials investigated and turned over evidence to the Attorney General’s Office. The AG Office requested the forensic auditing expertise of the State Auditor’s Office. As a result, the city formally requested the audit in March 2018.

The report also detailed lack of oversight by the city, which allowed the fraudulent activity to take place and continue undetected. The report includes recommendations to improve oversight of accounting functions, documentation of financial transactions and record keeping processes.

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