Report No. 2010-62
June 2010
Complete Audit Report
Findings in the audit of Christian County
Financial Condition
The cash balance of Christian County's General Revenue Fund has declined and the financial condition of the Common I (eastern) Road Fund has not been adequately monitored. The General Fund cash balance has decreased from $3.3 million at December 31, 2007, to a projected balance of less than $1 million at December 31, 2010. Along with decreasing receipts, several other factors have contributed to the decline including, the distribution of general sales tax monies to special road districts, cities, and county road funds; the change in the retirement plan from contributory to noncontributory; and the purchase of real estate. County officials have also failed to properly certify the sales tax rollback portion of the property tax levy affecting the county's ability to levy property taxes in the future. During 2007 and 2008, the cash balance of the Common I Road Fund fell below zero and invoices totaling approximately $485,000 were paid late resulting in interest charges of $20,356. Also, a used track loader costing $30,000 was purchased from an individual who was subsequently hired as a county road employee and the equipment has been used very little. Long-term financial planning and monitoring receipts and disbursements of both the General Revenue Fund and the Common I Road Fund are necessary to improve the financial condition of these funds.
Property Tax System
Property taxes are not adequately reviewed, resulting in approximately $380,000 due to county schools and property tax levies incorrectly charged to some taxpayers. These errors were not detected by the county officials responsible for property tax monitoring procedures. In addition, password procedures over property tax data need improvement.
Sheriff Inmate and Commissary Procedures
Significant problems were identified with the records and procedures related to inmate and commissary monies, and there is no assurance these monies have been handled appropriately. Some monies cannot be accounted for properly, records are incomplete and inadequate, cash refunds to inmates are not adequately documented, and the Administrative Assistant performs all the duties related to inmate/commissary monies without adequate supervision. Monies are not adequately secured, deposits were not made timely, and some monies were held and deposited at a later date. Cash is also taken out of receipts on hand and refunded to inmates upon release without adequate documentation. Commissary income and inventory items are not adequately tracked, and the Sheriff received $10,000 in accountable fees that should have been turned over to the County Treasurer but were spent outside the normal county disbursement process on items related to the detention center. Additionally, booking fees totaling $10,500 were collected without statutory authority and should be turned over to the County Treasurer.
County Disbursements and Vehicle Usage
The county needs to improve its process of procuring and monitoring professional services. In October 2009, the County Commission began the process of refinancing bonds of approximately $6.8 million associated with the judicial center without soliciting proposals. Procedures are not in place to adequately monitor the use of county owned vehicles and equipment. Concerns were noted related to pre-paid debit card purchases and county purchasing procedures.
Federal Emergency Management Assistance Projects
The county did not provide adequate documentation to indicate that ice storm debris removal contractors were properly monitored. Ice storms caused significant damage to county roadways in February 2008 and January 2007, and as a result, the county was awarded federal emergency management assistance (FEMA) grants of $452,000 and $2.7 million, respectively, for debris removal. The county paid the debris removal contractor $86,440 for citizen debris removal prior to approving an addendum to the contract to allow the contractor to perform this service. In addition, the county paid landfill tipping fees totaling $13,750 which according to the contract, should have been paid by the contractor.
Payroll Controls and Procedures
Passwords (codes) provided to elected officials which allow them to review, edit, and approve automated time records are not kept confidential. Employees and supervisors do not indicate their approval of time records to verify accuracy. Additionally, reconciliation procedures need improvement and the personnel manual should be expanded and followed.
Other Findings
Other findings in the audit report relate to controls and procedures of the Offices of Sheriff, Prosecuting Attorney, Public Administrator, and County Assessor; election funds; and other county departments.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
