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Auditor Logo Susan Montee

Report No. 2008-86
December 2008

Complete Audit Report


IMPORTANT: The Missouri State Auditor is required by state law to conduct audits once every four years in counties, such as Stone, 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.


Disbursements totaling $1,490 from the Help America Vote Act grant were not supported by adequate documentation. Voting equipment costing $4,054 purchased with these grant funds was not included on the county's capital asset records. Additionally, 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) prepared and submitted to the State Auditor's Office as a part of the county's annual budget. The county's SEFA for the years ended December 31, 2006 and 2005, contained several errors, and total expenditures were understated by approximately for $20,750 and $219,950 for 2006 and 2005, respectively.

At least $17,800 has been misappropriated from the Prosecuting Attorney's office during the three years ended December 31, 2007. Prior audit reports have addressed the inadequacy of the Prosecuting Attorney's accounting controls and procedures, and while the Prosecuting Attorney responded in the 2002 audit, as well as other previous audits, that recommendations would be implemented, conditions have not improved. Our review identified numerous control and procedural weaknesses including questionable delays in some monies being deposited. The inadequate segregation of accounting duties and poor controls have led to the misappropriations.

The Sheriff's bookkeeper approves payments to herself for the preparation of prisoner meals and there is no evidence in the County Commission meeting minutes to indicate the County Commission was involved in the bid process for these services. As a result, there is an appearance of a conflict of interest related to the $113,000 paid for prisoner meals during 2007.

The County Commission did not solicit proposals or document its selection process for engineering services related to the planning and zoning department. Additionally, concerns were identified with disbursements for Christmas lights from the Collector's Tax Maintenance Fund, travel expenses from the Sheriff's Law Enforcement Civil Fee Fund, and various expenses from the County Clerk's Election Services Fund. Further, the personal use of county cellular phones is not always reimbursed to the county.

Several weaknesses exist over the county's property tax system. The accuracy of the tax books is not verified, some changes to the tax books are not approved by the County Commission, and the county's property tax system does not adequately track all changes made to the system. Further, other improvements are needed over the reporting of property tax information.

Budgets for some county funds contained misclassifications and errors or were incomplete, actual disbursements for some funds exceeded budgeted disbursements, and the published financial statements did not include the activity of some funds. In addition, there is no detailed plan to utilize the $325,000 that has accumulated in the Recorder User Fee Fund, and an annual maintenance plan for the county roads and bridges has not been prepared.

As of December 31, 2007, over $300,000 is owed to the county's General Revenue Fund by the Black Oak Mountain Resort NID because adequate assessment revenues are not collected from landowners to fund the NID bond payments. According to county budgets the amount owed is anticipated to exceed $400,000 by the end of 2008.

The county purchased approximately $730,000 in bulk fuel during the two years ended December 31, 2006, and does not have procedures in place to compare these purchases to the amount of fuel used. Additionally, mileage records maintained for road and bridge vehicles do not differentiate mileage for employee commuting purposes, and mileage logs are not maintained for a county vehicle driven by the Prosecuting Attorney and his staff.

Poor reconciliation procedures of the Sheriff's bank account has resulted in the overpayment of fees and a negative bank account balance. Additionally, better controls are needed over cash receipts collected at various locations within the Sheriff's Department. Bookkeeping duties are not adequately segregated, and fees were not timely and accurately turned over to the County Treasurer.

Budgets did not accurately reflect the Emergency 911 Board's actual financial condition, actual disbursements exceeded the budgeted amounts, and published financial statements did not comply with state law. Additionally, vehicle mileage logs are not reconciled to fuel purchases, and gift cards were purchased to buy fuel at a discount; however, supporting documentation was not maintained to document how the gift cards were used.

Also included in the report are recommendations related to payroll and personnel procedures, capital assets, closed meetings, and the Circuit Clerk, Public Administrator, County Treasurer, Assessor, and Senior Citizens Service Board.

Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov