Missouri State Auditor's Office

September 11, 2001

Report No. 2001-84

State officials spent over $10.6 million in 2 years on food, mostly for its employees

Auditors reviewed the costs incurred by state agencies to feed employees during various agency-sponsored events including meetings, employee retirement receptions, training sessions, employee recognition events, and public marketing events to spotlight state products. Meal costs reimbursed to employees for business-related travel expenses were not included.

Auditors focused on expenditures for fiscal years 1999 and 2000 identified in the state accounting system as “agency-provided food.” After scanning nearly 47,000 transactions from every government branch (executive, legislature, judiciary and all state agencies), auditors selected more than 500 expenditures and reviewed for adequate supporting documentation, an appropriate business purpose, and reasonableness.

Our audit found the discretion on food purchases is left up to agency personnel because state officials have not established a comprehensive food policy. As a result, the expenditures were inconsistent among agencies and sometimes excessive. The following highlights some common practices involving agency provided food:

Meetings were often scheduled around lunch hour

Many agencies frequently scheduled meetings around the lunch hour and provided a meal to the attendees. In many cases, the meetings lasted three hours or less and likely could have been scheduled in the morning or afternoon. Auditors also noted several instances in which a standing committee or an agency’s management level employees met regularly and a meal was provided, even though some attendees were in their official domicile. (See page 13 for examples.)

State funds used for employee retirement receptions

Many agencies routinely purchased food for retirement receptions of state employees, which were often held on state time. State regulations do not clearly address whether these expenditures are appropriate. Food costs varied widely with some agencies only providing cake, punch and coffee, while others hosted parties at restaurants and bars. (See pages 14-15 for examples.)

State officials paid up to $19 per person for breakfast; $25 per person for lunch; and $32 per person for dinner at agency-sponsored functions. State regulations do not provide price limits or guidelines regarding per person meal costs. (See page 16 for examples.)

A portion of these food expenditures were not used to feed state employees, but instead represented food provided to business persons or members of the public, in an effort to market Missouri or its products. These often involved large dollar expenditures, including such events as wine-tastings promoting Missouri’s wine industry and receptions at national conventions to promote Missouri business or tourism opportunities. (See pages 17-18 for examples.)

Many agencies routinely provide lunch to employees during training sessions without regard to whether the participating employees were in their official domicile. The food costs varied widely as did the training locations, which included Lake of the Ozark resorts and Missouri wineries. (See pages 11-12 for examples.)

The audit recommended the Office of Administration (OA) develop comprehensive policies regarding state agency-provided food expenditures. In its response, OA indicated it will convene an interagency work group to review the current policies and recommend any changes to the commissioner.