YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

 

September 25, 2001

Report No. 2001-97

IMPORTANT:� The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Stoddard, 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.��

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This audit of Stoddard 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 Sheriff�s department and reserve deputies maintain several bank accounts outside the county treasury.� The Sheriff indicated that he did not know how many accounts there were, that he got no reporting on the accounts, and that he believed these accounts were not subject to audit because they were not county funds.�� 

However, we subpoenaed some records and found that at least $4,700 in federal receipts were deposited in these accounts.� Additionally, commissary profits which are maintained in one of the accounts are accountable fees that should be handled through the county treasury.� More than $50,000 of receipts and disbursements in three accounts were not monitored by a county official. 

• The County Commission has no assurance payments made to the Sheriff, totaling more than $106,000, for preparing and serving meals to prisoners are reasonable.� The County Commission does not receive or review any documentation supporting the actual food costs incurred by the Sheriff.� In addition, the amounts are not reported to the IRS on the Sheriff�s W-2 form.

• A state law, Section 50.333.13, RSMo, enacted in 1997, allowed salary commissions meeting in 1997 to provide mid-term salary increases for associate county commissioners elected in 1996 due to the fact that their terms were increased from two years to four.� Based on this law, in 1999 Stoddard County�s Associate County Commissioners salaries were each increased approximately $8,955 yearly, according to information from the county clerk.� 

On May 15, 2001, the Missouri Supreme Court handed down an opinion that holds that all raises given pursuant to this statute section are unconstitutional.� Based on the Supreme Court decision, the raises given to each of the Associate County Commissioners, totaling approximately $17,910, for the two years ended December 31, 2000, should be repaid.�  

• The County Commission did not adequately monitor townships and special road districts receiving federal monies for bridge replacement and repair.� In addition, the County Commission did not enter into written contracts with the townships and special road districts for distribution of County Aid Road Trust (CART) monies.

• The county prepared a schedule of expenditures of federal awards, for the years ended December 31, 2000 and 1999; however, the schedule contained a number of errors and omissions with expenditures over reported by approximately $114,000 for 2000 and understated by approximately $62,000 for 1999.� 

Also included in the audit are recommendations related to budgetary practices, published financial statements, township interest distribution, mileage, general fixed assets, and computer controls.� The audit also suggested improvements in the record keeping of� the County Clerk, County Treasurer/Ex-Officio Collector, Prosecuting Attorney, Recorder of Deeds, Circuit Clerk, and the Sheriff�s Fee Account and Inmate Account.� Several of these issues have been mentioned in prior audits.

Complete Audit Report

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Missouri State Auditor's Office
moaudit@mail.auditor.state.mo.us
Webmaster: auditor@mail.auditor.state.mo.us

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