Report No. 2007-88
December 2007

Complete Audit Report

IMPORTANT: The Missouri State Auditor is required by state law to conduct audits once every four years in counties, such as Marion, that do not have a county auditor. In addition to a financial audit of various county operating funds, the State Auditor's statutory audit covers additional areas of county operations, as well as the elected county officials, as required by the Missouri Constitution.

Budgetary and financial statement procedures are in need of improvement. The approved budget document did not adequately project anticipated disbursements and the ending cash balance for some county funds. For several funds, budgets included erroneous classifications of receipts, disbursements, and transfers. The County Commission and various elected officials did not ensure budgets were prepared for some county funds. Also, actual disbursements exceeded budgeted amounts for several funds. The county's annual published financial statements did not include financial information for some county funds held by various elected officials, the Health Department, and the Emergency Telephone Service (E911) Board.

The county has not adopted procedures to monitor or assess the results of the actual sales tax rollbacks and to consider any differences noted in prior years when calculating the current year’s rollback. Although the County Clerk believes that the voluntary property tax reductions should be considered in calculating the excess, these reductions were clearly designated as voluntary and not sales tax reductions on tax forms.

The county does not have adequate procedures in place to track federal awards for the preparation of the Schedule of Expenditures of Federal Awards (SEFA), and as a result, the county's SEFA contained several errors and omissions. Expenditures were understated by $655,500 and $232,400 for the years ended December 31, 2006 and 2005, respectively.

The E911’s controls and procedures for the State Domestic Preparedness Equipment Support Program were not adequate to ensure compliance with federal requirements. The E911 Board paid $356,447 from December 2005 to June 2006 for equipment which will not be received until the new building is constructed. The E911 Board also does not have adequate procedures for capital assets purchased through the State Domestic program.

The county does not have adequate procedures to monitor and ensure bank accounts are sufficiently collateralized. There was no evidence the County Commission examined and approved the additions and abatements of property taxes or the County Collector's annual settlements. In addition, the county has not obtained bond coverage for the Assessor as required by state law and various county employees who handle money. Furthermore, the county does not clearly document for which years allowable administrative transfers are included in the budgeted transfer amount each year.

Timecards are not submitted to the County Clerk’s office for Highway Department employees. As a result of the summary timesheets prepared by the Highway Department not agreeing with the original timecards, one employee's compensatory balance was overstated by 3.5 hours. Also, timesheets are not prepared by the part-time Emergency Management Director, the county's policy regarding the accumulation of compensatory time is not clear, and the County Coroner's compensation did not appear to comply with statutory provisions.

The E911 Fund budget document does not adequately project the fund's financial condition. The budgets do not include a beginning or estimated ending cash balance. In addition, the two previous years' actual amounts are not shown on the budget document as required. The E911 disbursement procedures related to documenting approval of invoices, maintaining adequate supporting documentation for credit card purchases, and paying additional compensation to employees need improvement. In addition, board minutes are not signed by the preparer or by a board member to attest to their completeness and accuracy and do not clearly indicate whether decisions made during the closed session were announced during the open session.

The Health Department receipt and disbursement controls and procedures are in need of improvement. The Health Department gave gift cards and paid additional compensation to some employees without adequate documentation. In addition, bank reconciliations are not complete or adequately documented. Board minutes are not signed by the preparer or by a board member to attest to their completeness and accuracy and do not clearly indicate whether decisions made during the closed session were announced during the open session. The Health Department does not have adequate procedures to monitor and ensure bank accounts are sufficiently collateralized nor do they have a conflict of interest or financial disclosure policy.

The county does not have a written agreement with the Extension Council for the sale of county plat books and maps. The county purchases the books and maps, with the understanding that all monies collected by the Extension Council are paid to the 4H Council, who reimburses the county for the cost of each item sold. No one monitors to ensure all costs are properly reimbursed to the county.

The audit also includes recommendations to improve records and procedures for bids, agreements with not-for-profit organizations, county vehicles and fuel usage, and capital assets. Additional concerns regarding controls were noted for the County Treasurer, Sheriff, Circuit Clerks, Prosecuting Attorney, Public Administrator, Juvenile Justice Center, Assessor, County Coordinator, and Highway Department.

Complete Audit Report