YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

September 24, 2001

Report No. 2001-92

IMPORTANT:  The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Barry, 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 Barry 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 Developmentally Disabled Board has accumulated a significant cash reserve without any specific plans for its use.  During the two years ended December 31,  2000 receipts exceeded disbursements by $148,076, resulting in the cash balance of the Developmentally Disabled Board Fund increasing from $258,310 at December 31, 1998 to $406,386 at December 31, 2000.  The Developmentally Disabled Board should determine its future needs, and consider such information when setting future property tax levies.
  
• Prior audit reports have addressed the inadequacy of the Circuit Clerk’s accounting records.  While the Circuit Clerk responded in previous audits that recommendations would be implemented, conditions have not improved.   This audit identified weaknesses such as untimely deposits, inaccurate bank reconciliations, and no accounting for liabilities.
  
• Several weaknesses were identified in the offices of the Prosecuting Attorney and the Associate Circuit Court, including inadequate segregation of duties, inadequate receipting procedures, and not properly accounting for liabilities.
  
• The county does not have adequate procedures in place to track federal awards for the preparation of the schedule of expenditures of federal awards.  Federal expenditures were understated by $264,832.  For the schedule to adequately reflect the county’s federal expenditures, it is necessary that all federal expenditures be properly reported.
  
• Federal surplus property totaling $1,015 was purchased by the county and provided to the Monett Sportsmen League for their use.  State and federal regulations require surplus property to be used by the authorized public agency making the purchase for promoting public services.

• Actual expenditures exceeded budgeted amounts for several funds.  County officials recognized expenditures were going to exceed budgetary amounts and believed they could not amend the budget; however, county officials did not discontinue spending from these funds.

The audit also includes some matters related to budgetary practices, collateral security, general fixed assets, personnel, County Collector procedures, and the Juvenile Division, upon which the county should consider and take appropriate corrective action.  Several of these issues had been noted in prior audits.

Complete Audit Report