YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

January 30, 2002

Report No. 2002-09

IMPORTANT:� The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Perry County, 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 Perry County included additional areas of county operations, as well as the elected county officials.� The following concerns were noted as part of the audit: 

• In December 2000 and 1999, the County Commission amended various county budgets to reflect increased expenditures made during the year.� Amendments made after expenditures have exceeded the budget do not allow for the budget to be used as an effective management tool.

• 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 Perry County�s Associate County Commissioners� salaries were each increased approximately $4,100 yearly, according to information from the County Clerk. 

On May 15, 2001, the Missouri Supreme Court handed down an opinion that holds 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 $8,200 for the two years ended December 21, 2000, should be repaid. 

• The Prosecuting Attorney�s office needs to improve controls over the processing of cash receipts and subsequent disbursements related to bad check and court ordered restitutions.

• The county needs to establish billing rates appropriate for housing inmates in the county jail, solicit bids for meals provided to inmates and enter into written contracts for all such services.

Complete Audit Report