YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2004-55

July 2, 2004

Spending for Promotional Items and Gifts Was Sometimes Unnecessary and Excessive

State agencies have the opportunity to reduce costs or redirect funds by discontinuing purchases and distribution of trivial promotional items and gifts.  The audit sample determined 12 agencies unnecessarily spent up to $1.2 million for promotional items and gifts during the 2 years ended June 30, 2003.  Absent any statewide criteria to determine if promotional item purchases were reasonable, auditors established criteria based on what a prudent person would consider a reasonable taxpayer expense.

Purchases for recruiting fairs, trade shows, State Fair and government meetings

One agency spent $11,546 for portfolios with calculators, mugs, lanyards (necklaces with hooks), post-it note pads, and mouse pads to be used for recruitment.  Other agencies made similar purchases and officials said it was necessary to have an item to "draw" or "attract" individuals to their booths at fairs and trade shows.  Some of the items purchased included pencils, pens, bandage dispensers, stress balls and key chains. 

Extravagant and excessive gifts

Agencies could have used less costly items to recognize volunteers and employees.  One agency gave out a $195 Seiko watch as a special recognition award.

Use of promotional items was questionable

State agencies purchased and distributed promotional items to state legislators, state employees, and private organizations or functions.  These distributions are not necessary to conduct state business or promote the agency or its programs.

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