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YELLOW SHEET Office of the State Auditor of Missouri |
Report No. 2005-68
September 2005
The following problems were discovered as a result of an audit conducted by our office of the Missouri Department of Transportation and Highway Patrol Employees' Retirement System (MPERS).
In August 2003, after contracting with an external consultant to perform a salary study to determine market salary levels for its staff, the board provided its 11 employees with annual pay increases totaling approximately $52,000, effective July 1, 2004, in addition to cost-of-living adjustments (COLA) increases. These increases ranged from 1 percent to 21 percent, with the exception of the Chief Investment Officer who received only the standard COLA increase. Prior to July 2004, the board provided raises to its employees consistent with those provided to other state employees.
The board has contracted for legislative consulting services since 1997, without soliciting proposals for these services. The board also did not solicit proposals when hiring some consultants for specific projects. Without requesting proposals for all professional services, the board may be missing the opportunity to obtain similar or improved service at a better price, either from existing or new firms.
The MPERS spent approximately $68,000, $50,000, $56,000, and $25,000 on travel, meetings, and education during fiscal years 2004, 2003, 2002, and 2001, respectively. The board has not established limits for travel expenses, such as lodging and meals. The board should adopt reasonable lodging and meal rates and require a written explanation of reasons when costs are claimed that exceed these rates. Additionally, two of five expense reports reviewed did not contain adequate supporting documentation.
Adequate documentation of the search process for a building to relocate the MPERS office was not maintained. In addition, the board did not maintain adequate documentation justifying the need to purchase more office space than required.
Also included in the report are recommendations related to policies and procedures, and acceptance of gifts from third parties.
