YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No.2004-33

May 5, 2004

The following report is our review of the Office of the State Treasurer.

The Office of State Treasurer (STO) is an elective office as provided in the Missouri Constitution.  The duties of the State Treasurer are to be the custodian of all state funds; to determine the amount of state monies not needed for current operating expenses; and to invest such monies as allowed by state law.  The Office of State Treasurer operates in four major functional areas: 1) accounting and banking services; 2) disbursements and records; 3) investments and deposit programs; and 4) unclaimed property.

During the year ended June 30, 2003, the STO co-sponsored a "Women in Business" conference with Friends of the Missouri Women's Council, a not-for profit organization, without first obtaining a formal written agreement.  Due to decreased attendance, conference registration fees totaling $650 were insufficient to cover the conference costs of approximately $6,600, which included brochures ($1,300), meeting room charges ($3,800), food ($1,400), and an administrative fee ($100).  Due to a misunderstanding and the lack of a formal written agreement, the STO paid the conference's costs, net of registration fees collected, of approximately $6,000.  The audit questioned the relevance of this expenditure to the operation of the STO, and the lack of a formal written contract to establish payment terms and clarify responsibilities and expectations of all parties.

Complete Audit Report