Report No. 2010-150
November 2010
Complete Audit Report

Findings in the audit of Barry County

Sheriff Controls and Procedures
Several weaknesses were identified in the accounting controls and procedures in the Sheriff's office resulting in missing cash receipts totaling at least $675 between January 1 and June 24, 2009. Accounting duties are not adequately segregated and an adequate supervisory review of the accounting records is not performed. Monthly bank reconciliations and lists of liabilities were not prepared and compared to the reconciled bank balance for the civil and bond bank accounts from January 2007 through June 2009. Also, weaknesses were identified in the procedures used to receipt and deposit monies collected.

Sheriff Inmate and Credit Card Procedures
Inmate property intake forms are not prenumbered and were sometimes not signed by an officer. Inventory records are not maintained of prepaid phone cards purchased and sold to inmates. The Sheriff's office does not adequately track the assignment of fuel credit cards and monthly fuel reconciliations are not adequate.

Emergency Services Board Cash Procedures
The Emergency Services Board has approximately $424,000 of lease purchase proceeds that have not been disbursed and have been held in an escrow account since November 2008. The Board has not documented plans for the use of these funds and has been paying 4.5 percent interest (approximately $19,000 annually) on the borrowed funds. Improvement is needed over various receipting and depositing controls and procedures, and petty cash procedures. Further, bank account activity is not adequately monitored, resulting in negative bank balances, and formal bank reconciliations are not prepared.

Emergency Services Board Policies and Procedures
In 2009, the Emergency Services Board failed to deposit payroll taxes timely resulting in penalties and interest totaling $1,585. Additionally, quarterly payroll tax reports are not reconciled to year end reports. Time sheets are not always signed by the employee or the employee's supervisor. In addition, time sheets and leave records are not prepared by the Director and Assistant Director. The Emergency Services Board does not have written policies addressing coupons awarded to employees and the termination of benefits. The Emergency Services Board does not review or approve disbursements timely, and check signers and employees are not bonded. Emergency Services Board budgets are not accurate and do not include some information required by state law, and financial statements were not published as required by state law. Further, procedures for conducting and documenting meetings need improvement.

Grant Monitoring Procedures
The County Commission has not established adequate monitoring procedures to provide better assurance that the Southwest Missouri Drug Task Force, a subrecipient of federal grant funds, is in compliance with applicable grant requirements. Calculations for compensatory time were in excess of the amount authorized by the county's personnel policy. The County Commission does not perform a periodic review of task force controls and procedures or periodically request and receive detailed supporting documentation prior to approving grant reimbursement request forms.

Property Tax System Controls and Procedures
Personal property tax additions and abatements are not adequately monitored and approved. Neither the County Commission nor the County Clerk adequately reviews the activities of the County Collector. The County Clerk does not prepare and maintain an account book with the County Collector that could be used to verify the accuracy and completeness of the County Collector's annual settlements. Passwords, which restrict access to the property tax computer system used by the County Collector and Assessor, are shared and are not routinely changed. The County Collector incorrectly calculated commissions and Assessment Fund withholdings for three school districts resulting in $11,140 being over withheld.

Developmentally Disabled Board
The Developmentally Disabled Board has accumulated a significant cash reserve, and does not have documentation of how these funds will be spent to benefit the developmentally disabled. During the 2 years ended December 31, 2009, the accumulated cash reserve increased by approximately $35,000 to a balance of $757,000 at December 31, 2009. Additionally, accounting duties are not adequately segregated and oversight by the Board is not adequate. Further, the open meeting minutes do not always include sufficient detail of matters discussed or actions taken, and many decisions are not adequately documented in the meeting minutes.

Other Findings
Other findings in the audit report relate to controls and procedures in the Office of Ex-Officio Recorder of Deeds and the Office of Public Administrator; and County Commission meeting minutes.

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