YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

December 31, 2001

Report No. 2001-123

IMPORTANT:  The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Moniteau, which do not have a county auditor.  However, to assist such counties in meeting federal audit requirements, the State Auditor will also perform a financial and compliance audit of various county operating funds every two years.  This voluntary service to Missouri counties can only be provided when state auditing resources are available and does not interfere with the State Auditor’s constitutional responsibility of auditing state government. 

Once every four years, the State Auditor’s statutory audit will cover additional areas of county operations, as well as the elected county officials, as required by Missouri’s Constitution.

This audit of Moniteau County included additional areas of county operations, as well as the elected county officials.  The following concerns were noted as part of the audit: 

• The county's General Revenue Fund is in poor financial condition.  The cash balance of the General Revenue Fund decreased from $145,459 at January 1, 1997, to $42,222 at December 31, 2000.  In November 2001, the county borrowed $40,000 from other funds to cover General Revenue Fund payroll expenses.

The County Commission needs to closely monitor revenues and expenditures and take steps to increase the balance of the General Revenue Fund.  The county could do a better job of maximizing certain revenues.  In addition, it appears some expenditures made from the General Revenue Fund could be made from other funds which have available resources. 

• The Prosecuting Attorney needs to improve accounting controls and procedures for bad check restitution and fees.  Accounting and bookkeeping duties are not adequately segregated and employees responsible for receiving and disbursing monies are not bonded.  Depositing receipts and preparing bank reconciliations should be done in a timely manner.  A system, such as a bad check log,  to account for all bad check complaints received and subsequent disposition should be established.
  

• The Health Center Board has accumulated a cash balance of $337,456 at December 31, 2000, which exceeded total operating expenditures for the year.  The board should take measures to reduce this balance, such as reducing the property tax levy, or formally document plans for using the accumulated balance.

• The county needs to restrict access to the computerized assessment and property tax system.  Access should be limited to only those individuals with statutory authority to change applicable data.  If this is not considered practical, the county should implement a system in which change reports are generated and reviewed by an independent individual, such as the County Clerk.  In addition, the county needs to implement systems to assign unique passwords to each user which are changed periodically and to detect and prevent incorrect log-on attempts, as well as a formal contingency plan in case of emergency.

• The county is required to prepare an annual schedule of expenditures of federal awards (SEFA).  The SEFA prepared for the years ended December 31, 2000 and 1999, contained numerous errors and omissions.  Without an accurate SEFA, federal financial activity may not be audited and reported in accordance with federal audit requirements which could result in future reductions of federal awards.

Also included in the audit are recommendations to improve general fixed assets and matters related to the Circuit Clerk and Emergency Dispatch Board.  Several of these issues had been noted in prior audits.

Complete Audit Report