Success Notification Overlay
Failure Notification Overlay

Auditor Logo Susan Montee

Report No. 2010-121
October 2010

Complete Audit Report


Findings in the audit of Adair County


Financial Condition
The Special Road and Bridge (SRB) Fund has experienced a declining cash balance over the past several years. The SRB Fund had a cash balance of $726,039 at January 1, 2003. However, by 2006, the SRB Fund did not have sufficient funds to meet obligations. Also, SRB Fund disbursements exceeded receipts in 5 of the last 6 years. In addition, actual disbursements exceeded budgeted disbursements by approximately $128,000 in 2008. The SRB Fund reliance on transfers and loans from the General Revenue Fund could negatively impact the financial condition of the GR Fund and services provided by that fund. The County Commission indicated it is aware of the financial condition of this fund and is monitoring it through preparation and review of monthly budget reports and quarterly budget reviews.

Property Tax System
Neither the County Commission nor the County Clerk provide a review of the activities of the County Collector. The County Clerk does not maintain an account book or other record summarizing property tax transactions and changes. In addition, no evidence was provided to indicate procedures are performed by the County Clerk or the County Commission to verify the County Collector's monthly or annual settlements. The County Clerk does not prepare or verify the accuracy of the current or delinquent tax books.

Collector's Procedures
The method of payment is not consistently recorded on paid tax statements, and the composition of receipts is not reconciled to the composition of deposits. Reconciled bank account balances are not compared to existing liabilities. The County Collector is improperly withholding and personally retaining an additional commission on railroad and utility taxes pertaining to cities.

Prosecuting Attorney's Procedures
Accounting duties are not adequately segregated. The secretary who is responsible for all bad check receipting, recording, and disbursing functions also reconciles the bank accounts, and has the ability to post account adjustments to the system without documented independent approval of the adjustments. Procedures to identify month-end liabilities and reconcile the liabilities to the cash balance of the restitution bank account are not sufficient.

Sheriff's Procedures
Receipt slips are not issued for payments received in the mail or for paper services fees, multiple receipt slip books are in use at the same time, and the numerical sequence of receipt slips is not accounted for properly. Checks and money orders are not restrictively endorsed immediately upon receipt. Bank reconciliations for the commissary bank account are not performed. In addition, procedures do not exist to identify month-end liabilities and reconcile liabilities to the commissary bank account. Procedures do not exist to ensure all fees received are disbursed.

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