YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

September 25, 2001

Report No. 2001-96

IMPORTANT:  The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Lawrence, 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 Lawrence County was a financial and compliance audit of various county operating funds.  The following concerns were noted: 

·        The county has not established cash management procedures to ensure the minimum time lapses between its receipt of federal project monies and the disbursement of such monies to contractors.  Some monies received were held as long as 23 days before the related payment was made to the contractor. 

·        The county does not have adequate procedures in place to track federal awards for the preparation of the schedule of federal awards.  Federal expenditures were understated by approximately $244,000 in 1999.  For the schedule to adequately reflect the county’s federal expenditures, it is necessary that all federal expenditures be properly reported.  

The audit also includes some matters related to expenditures, budgetary procedures, published financial statements, personnel policies, officials’ compensation,  property tax system, County Treasurer’s procedures, employee bond coverage, and the Senior Citizens Service Board, upon which the county should consider and take appropriate corrective action.

Complete Audit Report