YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

December 22, 2003

Report No. 2003-116

IMPORTANT:  The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Putnam, which do not have a county auditor.  However, to assist such counties in meeting federal audit requirements, the State Auditor will also provide 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 it 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 Putnam County included additional areas of county operations, as well as the elected county officials.  The following concerns were noted as part of the audit: 

• An employee of the Sheriff's office was paid approximately $24,200 by the county during 2002 and 2001 to prepare meals for county prisoners; however, bids have not been solicited for this service since 1999.  The county pays $7 per prisoner per day whether the prisoner has three meals or one meal.  In addition, the county needs to maintain adequate documentation to ensure the employee's time spent on preparing meals does not conflict with her normal county duties.

• The County Commission has not established procedures to monitor the expenditure of county capital improvement sales tax monies.  In November 2000, the County Commission put on the ballot and the county voters approved a sales tax for hospital capital improvements.  The sales tax monies, totaling approximately $208,000 during 2002 and 2001, are remitted to the hospital.  The County Commission does not approve the expenditure of these funds nor does it receive specific information on how the money is spent.  State law requires county capital improvement sales tax monies to be deposited into a separate trust fund to be used solely for such designated purpose.

• The county's funds on deposit were not always covered by collateral securities.  The amount of securities pledged by the county's depositary bank in January 2003 was insufficient by approximately $147,000 to cover monies in the custody of the County Treasurer and Ex Officio Collector.

• The county's procedures to track federal awards for preparation of the county's Schedule of Expenditures of Federal Awards (SEFA) should be improved.  The SEFA prepared for 2002 and 2001 did not include expenditures for several federal grants, and total federal expenditures were understated by approximately $50,000.

Also included in the audit are recommendations to improve the budgets and accounting records of the Enhanced 911 Board, the county's general fixed asset records, and controls over the Prosecuting Attorney's and Sheriff's receipts.

Complete Audit Report