YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2000-30
May 4, 2000

During our audit of the Forty-Fourth Judicial Circuit, City of Mansfield, Missouri, Municipal Division, we identified the following problems.

The City of Mansfield Municipal Division accepts cash, checks, and money orders for payment of fines, court costs, and bonds. The Court Clerk is responsible for receiving , recording, and depositing court monies as well as preparing disbursements and reconciling bank statements. Prenumbered receipt slips are issued for monies received, and deposits are made into a municipal court bank account.

Court records indicate $3,898 was collected by the court but not deposited into the court bank account. In addition, $64 cash was reported stolen on August 8, 1999 in a break-in at city hall. As a result, undeposited receipts total $3,962.

The monies that are missing appear to represent cash receipts which were received between July 1998 and June 1999 and recorded but not deposited. The cash percentage of deposits decreased approximately 20 percent during July 1998 through June 1999.

Two receipt books containing a total of 300 municipal court receipts could not be located by the court. We located 84 duplicate copies of these receipt slips. It appears that receipt slips were issued from these two receipt books at the same time other receipt books were in use. The "missing receipt books" included court monies that were received but not deposited into the court's bank accounts. The use of these additional receipt books helped to conceal the misappropriation. Because 216 receipt slips are still missing, it appears likely additional monies have been misappropriated.

Information gathered during our review has been provided to the Wright County Prosecuting Attorney and Sheriff.

The duties of receiving, recording, depositing, and disbursing court receipts are not adequately segregated. The Court Clerk performs all of the duties related to the collection and disbursement of fines, court costs, and bonds. Neither the Judge nor other personnel independent of the cash custody and record-keeping functions provide any supervision or review of the work performed by the Court Clerk.

Receipt slips are not deposited on a timely basis. Receipts were deposited approximately once or twice a month. To adequately safeguard receipts and to reduce the risk of loss or misuse of funds, deposits should be made intact daily or when accumulated receipts exceed $100.

Fines and court costs are not disbursed monthly to the state and city treasury. As of August 1999 the former court clerk had not disbursed fines and court costs to the city since September 1998. Crime Victim's Compensation (CVC) and Police Officer Standards and Training Commission (POSTC) fees have not been turned over to the state since February 1999. State law requires 95 percent of the CVC to be paid monthly to the state. POSTC fees should also be disbursed monthly to the state.

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