January 16, 2004

Report No. 2004-05

The following problems were discovered as a result of an audit conducted by our office of the Department of Public Safety, Missouri Veterans Commission, Mexico Veterans' Home.

The Mexico Veterans' Home Assistance League is a not-for-profit organization which raises private funds to benefit residents of the Mexico Veterans' Home.  Donation, as well as canteen proceeds, are used for this purpose.  The Assistance League purchases items to sell through the canteen, coordinates and pays for events and activities for residents, and purchases items for common areas located in the facility.  Some expenditures did not appear to benefit residents, including approximately $8,300 spent for costs related to volunteer banquets and recognition awards.  Additionally, proper authorization was not obtained for expenditures as required by the league's by-laws.

Several league expenditures reviewed did not have proper supporting documentation.  We noted several cash withdrawals from the league's bank account, which were used to fund outings for the residents.  Cash amounts withdrawn were frequently for several hundred dollars.  The related documentation was limited and generally consisted of some notations showing the anticipated number of participants and estimated costs; however, there was no documentation submitted to support the monies spent.

Some state paid employees at the facility spend a portion of their work week performing job duties for the Assistance League.  Allowing state paid employees to perform duties associated with the Assistance League appears to be a violation of the Missouri Constitution, which prohibits state agencies from making donations to not-for-profit corporations.

The audit also included recommendations to the Assistance League regarding a formal bidding policy and collateralized securities.  In addition, the audit includes recommendations related to the facility's background checks and payroll procedures. 

Complete Audit Report