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YELLOW SHEET Office of the State Auditor of Missouri |
January 3, 2001
Report No. 2001-02
The following is a
follow-up of an audit conducted by our office of the Missouri Department of
Transportation.
The
department should make an effort to reduce expenditures for food costs and
redirect these resources to highway maintenance and construction
activities.� According to the
department�s records, the department paid approximately $300,000 in food costs
during fiscal year 1999.� These food
purchases represented amounts billed to the department from various food
service providers and did not include amounts reimbursed to employees through
expense accounts.� In fiscal year 1999,
the department had a policy regarding the reimbursement of travel expenses
(including meals) to employees; however, the department lacks a comprehensive
policy regarding agency provided meal expenses at meetings and other departmental
functions, including those held within the employees� official domiciles.���
We
reviewed the supporting documentation for thirty-eight food purchases made in
fiscal year 1999.� Many of these
purchases were incurred within the applicable employees� official domiciles,
and may have not been necessary.� The
supporting documentation for these purchases did not always indicate the
business purpose and/or identify those people attending.� Food purchases included meals at
restaurants, catered luncheons, and store purchases.
The
Missouri Department of Transportation should review the need to routinely incur
meal costs for individuals attending training sessions and other events and
develop a comprehensive policy regarding food purchases, particularly in
employees� official domiciles.�� A
similar recommendation was made by the department�s internal auditors in July
1999.
During
our audit, we reviewed various expenditures and related documentation to
support the procurement of aggregate material and gasoline and diesel at
several maintenance sheds in District 1 (St. Joseph), District 3 (Hannibal),
and District 9 (Willow Springs).� Our
review disclosed that such purchases were not always made in accordance with
the Missouri Department of Transportation requirements.
We reviewed four purchases, totaling approximately
$33,703, of aggregate material.� It
appears that telephone quotes were used for these purchases.� However, since the anticipated amount of the
purchase was over $3,000 for three of these purchases, formal bids were
required.� For the other purchase, it
appears that written quotes should have been taken.� In addition, documentation of the telephone quotes was not retained
for three of these purchases.
We
also reviewed fourteen purchases of gasoline and diesel.� According to maintenance personnel,
telephone quotes are used for these purchases and department procedures for
telephone quotes provide that a minimum of three vendors should be called, if
three are available.� In ten instances (71
percent), there was documentation of only two or fewer bids being obtained.
The
department needs to ensure that the department�s policies and procedures
related to the procurement of aggregate material and gasoline and diesel are
followed and bid documentation is properly retained.
We
noted similar problems in the prior audit.�
Although the department indicated in its response to the prior findings
that district staff would be reminded of the purchasing requirements, some of
the maintenance personnel we contacted during the current audit did not appear
familiar with these requirements.
As
similarly noted in prior reports, some of the Missouri Department of
Transportation�s moving expenses may be excessive and/or unreasonable.� The department typically reimburses various
moving expenses related to the recruitment of top management employees as well
as the transfer of existing employees to other locations within the state.
