YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

March 13, 2002

Report No. 2002-22

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

• Our review of the Associate Division's civil and criminal procedures identified problems similar to those reported in our Eighteenth Judicial Circuit, Associate Division III, Municipal Division audit (report number 2001-67).� It appears at least another $3,189 is missing from court receipts.� There was not an adequate segregation of accounting duties, deposits were not made timely although a significant portion of monies on hand were cash receipts, receipt records were not being reconciled to deposits, and monthly listings of open items (liabilities) were not being prepared.� In addition, voided receipt transactions were not adequately reviewed and it appears that $828 related to some of these transactions may not have been deposited.� 

• 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 Cooper County's Associate County Commissioners' salaries were each increased approximately $2,625 yearly.�

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 $5,250 for the two years ended� December 31, 2000, should be repaid. 

• A portion of the Prosecuting Attorney's salary is authorized by law because the state Department of Corrections operates a facility in Cooper County.� The amount of the additional annual compensation is dependent upon the average annual inmate population of the correctional facility.� Based on average inmate population obtained from Department of Corrections' records, it appears the Prosecuting Attorney received $2,500 more than allowed by law during 2000.�

• Numerous concerns were noted with the Sheriff's department payroll procedures resulting in questions regarding the accuracy of the payroll records and possible noncompliance with the Fair Labor Standards Act (FLSA).� A written policy regarding overtime and compensatory time has not been adopted for the Sheriff's department.� Deputies' monthly time sheets contained errors and inconsistencies, and improper compensatory time balances; and, are not being adequately reviewed by the Sheriff.� Maximum compensatory time balances established by the FLSA have been exceeded.� Neither the Sheriff nor the County Commission is adequately monitoring deputies' compensatory time and potential liability to the county.�

Also included in the audit are recommendations related to county expenditures, budgetary and financial reporting practices, investment practices, and fixed assets records and procedures.� The audit also suggested improvements in the accounting controls and procedures of the Sheriff, Prosecuting Attorney, and the Senate Bill 40 Board.�

Complete Audit Report