YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

March 14, 2002

Report No. 2002-23

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

• 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.� The Dallas County salary commission did not address this issue in 1997, but raises were approved for the associate county commissioners as well as other county officials in January 1999.� 

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 the Associate County Commissioners, totaling approximately $24,700, for the two years ended December 31, 2000, should be repaid.� In addition, in light of the ruling, raises given to other officials within their term of office should be re-evaluated for propriety. 

• In November 1998, voters of Dallas County passed a one-half cent general sales tax under Section 67.547, RSMo, earmarked for the purpose of implementing and operating an enhanced 911 system.� The alternative statutory authority for emergency services sales tax is under Section 190.335, RSMo.� As a result of the county passing the general retail sales tax earmarked for 911, the county may have limited the possibility for future general sales tax revenues.

• Several weaknesses were noted with the Dallas County 911 Board�s records and procedures.� The 911 Board purchased real estate without obtaining an independent appraisal and discussed matters in closed session meetings that appear to be contrary to state law.� In addition, the 911 Board did not obtain written contracts for services obtained or provided, prepare budgets in accordance with state law, properly document approval of expenditures, maintain records to account for general fixed assets, or require a mileage log be maintained for the vehicle driven by the 911 Administrator.

• Deficiencies identified in the Dallas County Health Center's records and procedures included maintaining cash funds in an unsecured location, preparing inaccurate budgets, authorizing expenditures in excess of budgeted amounts, and maintaining inadequate property records.

Also included in the audit are recommendations to improve the accounting controls and procedures for the Prosecuting Attorney and Sheriff.� The audit also suggested improvements be made in the county�s budgeting procedures, tracking of federal awards, handling and accounting for general fixed assets, and establishing a written agreement with the Prosecuting Attorney for the county�s share of office-related costs.

 Complete Audit Report