YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2006-38

June 2006

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.

The STO utilizes the Wagers computer system to maintain unclaimed property records. Our review of the reconciliations between the Wagers system and the Statewide Advantage System for Missouri (SAM II) disclosed a difference between receipts recorded in the two systems on the May 2005 reconciliation.  The internal auditors did not investigate the $6.3 million difference until state auditors questioned them about it.  It was determined an entry error was made due to changes in the way outlawed checks were recorded when modifications were made to the Wagers system.  The $6.3 million error caused total receipts to be overstated in the Wagers system which resulted in the Governmental Accounting Standards Board Statement Number 21 liability calculation for the state's Comprehensive Annual Financial Report (CAFR) initially to be incorrect.  This error was corrected prior to the issuance of the state's CAFR. 

Complete Audit Report