YELLOW SHEET
Office of the State Auditor of Missouri
Claire McCaskill
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YELLOW SHEET Office of the State Auditor of Missouri |
January 22, 2003
Report No. 2003-09
The following findings were noted as a result of an audit conducted by our office of the Office of Secretary of State.
The Office of Secretary of State does not adequately monitor expenditures made by subrecipients of the Institute of Museum and Library Services (IMLS) grants. The State Library (library) expended approximately $5.5 million from the IMLS grants during the two years ended June 30, 2002. Although the grant agreement provides for expenditure documentation to be retained and provided to the library upon request, the library does not routinely require subrecipients to provide expenditure documentation, and therefore rarely reviews and evaluates expenditure documentation from subrecipients. As a result, the library has little assurance that federal monies are spent in accordance with federal requirements. In addition, the Office of Secretary of State did not always prepare and submit reports to the federal agencies in compliance with grant requirements.
The Corporations Section has not established adequate procedures to ensure the number of filings processed each day are properly reported and accounted for and that fees are remitted to the proper fund. During our review of transmittal sheets submitted on 40 different days, we noted 11 (28 percent) days where the aggregate filings and/or transmittal sheets were not correct due to mathematical errors. The Corporations Section should establish procedures to independently verify the number of daily filings processed and reported on the transmittal sheets and the aggregate total fees for the day.
The Office of Secretary of State did not prepare and submit an internal control plan to the Office of Administration (OA) by July 2001. These plans were requested following the implementation of the state's new accounting and financial reporting system. Originally, internal control plans were to be submitted to the OA by October 1999; however, the Office of Secretary of State was granted an extension to July 2001. According to management personnel, the internal control plan is currently in the preliminary draft stage. They indicated that the final plan cannot be developed until written internal control procedures have been established for the various divisions within the office; however, these written procedures are still in the process of being established. The failure to complete an internal control plan contributed to control weaknesses in various divisions.