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YELLOW SHEET Office of the State Auditor of Missouri |
Report No. 2000-73
August 8, 2000
The following problems were discovered as a result of a review conducted by our office of the Missouri Development Finance Board.
In 1982, the legislature established the Industrial Development Board and the Industrial Development and Reserve Fund.� This board was authorized to issue loans, bonds and notes to help fund economic development projects.� They also established the Industrial Development Guarantee Fund and the Export Finance Fund for use by the Economic Development Commission.� This board was to issue guarantees for loans, bonds and notes arising from economic development projects.� The Export Finance Fund was established to accept contributions from businesses for the purpose of funding export activities of other Missouri based companies and the contributions would earn a tax credit of 50 percent of the contribution.� In 1985, these two entities were combined.�
The
Missouri Development Finance Board granted retroactive pay increases totaling
$3,838 to several employees.� In August
and October of 1997, the board granted salary increases to four employees and
made the increases retroactive to July 1, 1997.� Those four employees received retroactive payments totaling
$1,429.� In September 1998, the board granted
four employees salary increases and made the increases retroactive to July
1, 1998.� Those four employees received
retroactive payments totaling $1,299.�
In August 1999, the board again granted retroactive increases back to
July 1, 1999, to three employees and those employees received $1,110 in
retroactive payments.
Article III, Section 39 of the Missouri Constitution prohibits political subdivisions from granting additional compensation for services already rendered.� Although the amounts of the individual retroactive raises were not significant, the practice is prohibited.
