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YELLOW SHEET Office of the State Auditor of Missouri |
March 4, 2003
Report No. 2003-21
The following problems were discovered as a result of an audit conducted by our office of the Missouri Gaming Commission.
The Missouri Gaming Commission (MGC) holds monthly commission meetings in a variety of locations.� A review of employee expense reports determined that several employees of the MGC travel to the meeting locations the day before the actual meeting.� Those MGC staff traveling the day before a commission meeting incur hotel and meal costs that appear to be unnecessary.� The hotel and meal costs incurred the day before the meeting totaled $33,163.� The MGC indicated that staff travels the day before a commission meeting for various reasons including: avoiding an early departure on the day of the meeting, having other MGC business in the area, and needing to set-up for the commission meetings.
Three invoices reviewed, totaling $13,117, were paid without adequate supporting documentation.� These three invoices were for training, covert operations, and for Missouri-owned horse racing expenditures.� The invoices did not include support for covert operation expenditures or adequate documentation for whom training was provided.� In addition, the horse racing invoice did not have adequate documentation to support the use of the money.� Additionally, documentation for expenditures totaling $71,369 was not available indicating approval prior to the purchase of goods or services.� Adequate documentation is necessary to ensure the propriety of these expenditures.
The MGC did not solicit written bids for the following expenses:
� $9,075 for lodging for Simulated Excursion/Commission Meeting.
� $6,897 for lodging for Basic Gaming Training.
� $5,376 for costs associated with an Investigation/Commission Meeting.
Salaries and benefits associated with six Highway Patrol officers and a compliance auditor who worked a simulated excursion for one of the gaming facility licensees were not billed. The officers and auditor failed to indicate the time worked on the simulated excursion on their timesheets, which are used to prepare the monthly billings.� The gaming facility licensee was undercharged approximately $4,500 for the six officers and $1,000 for the compliance auditor.
Several gaming facility licensees had not been audited in accordance with the MGC's objective to have an audit every two years.� We noted that three gaming facility licensees have not been audited by the MGC in over three and a half years, and one gaming facility licensee has never received an audit since opening in June 2000.� Additionally, the MGC does not review in a timely manner the corrective actions taken by the gaming facility licensees in response to internal control variations or deviations noted in the independent certified public accountant's quarterly audits.
Other concerns were noted regarding fixed assets, and during our visits to various gaming facilities.
