Report No. 2010-107
September 2010
Complete Audit Report
Findings in the audit of Washington County
Financial Condition and Indebtedness
The financial condition of the county is poor and needs to be addressed. Disbursements of the General Revenue Fund have exceeded receipts in 3 of the last 4 years. In addition, the county has a significant amount of debt and has had difficulty making required payments when due. The county's General Revenue Fund had a loan payable totaling $350,000 at December 31, 2009. Concerns with the county's budgetary practices may also contribute to the county's financial condition. The County Clerk and Treasurer generate budget to actual reports; however, the county's procedures for monitoring these reports have apparently not been effective and actual disbursements exceeded budgeted disbursements in several funds. The county does not maintain a schedule of all road and bridge lease purchase agreements, scheduled payments, and outstanding balances. In addition, the county did not budget for all 2009 lease purchase payments. As a result, the county had to refinance two motor graders in September 2009, because sufficient funds were not available to make the payment due.
Sheriff's Office Controls and Procedures
Accounting controls and procedures in the Sheriff's office are in need of improvement. As noted in our prior report, accounting duties are not adequately segregated. Receipt slips are not issued immediately upon receipt, checks are not restrictively endorsed immediately upon receipt, receipts are not always kept in a secure location until deposited, and receipts are not deposited timely and intact. The Sheriff's office has four old inactive bank accounts. Adequate procedures have not been established to ensure all accrued costs are identified and pursued. The standard mileage charge used by the Sheriff for some locations is not reasonable. Adequate documentation is not maintained for receipts and disbursements for the Cops for Kids bank account. Some disbursements from the Sheriff's Revolving Fund are not in compliance with state law.
Sheriff's Inmate and Commissary Procedures
Records and procedures over inmate commissary monies are in need of improvement. Accounting duties are not adequately segregated. Profits from the inmate commissary are used to purchase items for the jail instead of turned over to the County Treasurer. Procedures are not in place to identify month-end liabilities and reconcile liabilities to the inmate commissary account. The Sheriff's office does not maintain documentation to support deductions from inmate account balances. A $10 booking fee is collected from inmates at the time of incarceration and deposited into the inmate commissary bank account. According to an attorney general's opinion, there is no express statutory authority for the Sheriff to charge a booking fee.
Prosecuting Attorney's Controls and Procedures
The Prosecuting Attorney's office does not issue receipt slips for bad check restitution or delinquent tax collections. In addition, receipts are not promptly posted to the accounting records and disbursed to victims in a timely manner. Bad check fees were not always disbursed to the County Treasurer in a timely manner. Although the Prosecuting Attorney's office has a list of restitution owed to the office, the list is not accurate or up to date. In addition, it appears some cases are not reviewed timely.
Disbursements
On December 31, 2009, the county paid Associate Commissioner Moyers mileage reimbursement in the amount of $10,608 without adequate documentation supporting the claim. In addition, monitoring of cellular phone use is not sufficient.
Public Administrator's Fees
The Public Administrator does not maintain documentation to support fees charged. As a result, there is less assurance estates are handled equitably or fees are properly calculated.
Handicapped Board Payments
Amounts paid to two not for profit entities (NFPs) in excess of approved contract amounts may represent a violation of the Missouri Constitution. During the August 2009 meeting, the Handicapped Board made the decision to pay $28,200 received from the state to the two NFPs to distribute equally to their employees. There was no support to indicate the services provided for the additional monies and the payments were not supported by a contract.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
