Report No. 2011-41
August 2011
Complete Report
Findings in the audit of Marion County
Financial Condition
The General Revenue Fund and the Special Road and Bridge Fund are in weak financial condition and not expected to improve during calendar year 2011. Disbursements have generally exceeded receipts for several years. In addition, due to errors in sales tax reduction calculations and voluntary property tax reductions taken, the county is limited in its ability to levy a general property levy. The County Commission needs to address the situation to avoid the reduction or loss of some county services.
Budgetary Practices
County budgets are not adequately monitored. Although quarterly reports comparing actual to budgeted receipts and disbursements are reviewed, actual disbursements exceeded budgeted disbursements for several funds.
County Sales Tax
The county did not reduce property taxes enough to meet the required 50 percent rollback. Marion County enacted a one-half cent sales tax with a provision to reduce property taxes by 50 percent of the sales tax collected, but the former County Clerk did not properly ensure the rollback was sufficient. We noted a similar condition in our prior audit report.
Sheriff Controls and Procedures
The Sheriff department's petty cash fund is not maintained at a constant amount, leaving it susceptible to misuse. In addition, the petty cash fund is used to reimburse employees for travel meals, but the amounts are not reported on form W-2 as required by the IRS. Procedures for approving and monitoring disbursements of the Law Enforcement Restitution Fund (LERF) need to be improved and may not be in compliance with state law. The LERF Board approves its budget but does not review and approve specific disbursements, and actual disbursements have consistently exceeded amounts budgeted.
Commissary Controls and Procedures
The Sheriff department needs to improve its reconciliation procedures for the Commissary Account to reduce the risk of errors and misuse. The Sheriff needs to determine the amount of profit, if any, in the account and turn it over to the County Treasurer as required by state law. The Sheriff department does not deposit some receipts, and commissary receipt slips are used for other types of receipts not deposited into the Commissary Account.
Payroll Procedures
Salaried county employees do not prepare and submit timecards, and leave is not granted in accordance with county policy. A similar condition was noted in our prior audit. The Marion County Board of Services for the Developmentally Disabled/Senate Bill 40 Board awarded its Executive Director a one-time bonus of $2,500, in violation of the Missouri Constitution.
County Property
The county is not maintaining up-to-date property records or conducting physical inventories, as also noted in our prior audit report. State law requires counties to account for personal property costing $1,000 or more.
Prosecuting Attorney Controls and Procedures
As noted in our two prior audit reports, the Prosecuting Attorney's office does not adequately account for the receipt and disposition of bad checks, which increases the risk of loss or misuse. The Prosecuting Attorney's office should assign a sequential number to each bad check complaint received that can be used to track the outcome of each matter.
Additional Comments
Because counties are managed by several separately-elected individuals, an audit finding made with respect to one office does not necessarily apply to the operations in another office. The overall rating assigned to the county is intended to reflect the performance of the county as a whole. It does not indicate the performance of any one elected official or county office.
In the areas audited, the overall performance of this entity was Fair.*
American Recovery and Reinvestment Act 2009 (Federal Stimulus)
Marion County did not receive any federal stimulus monies during the audited time period.
*The rating(s) cover only audited areas and do not reflect an opinion on the overall operation of the entity. Within that context, the rating scale indicates the following:
Excellent:
The audit results indicate this entity is very well managed. The report contains no findings. In addition, if applicable, prior recommendations have been implemented.
Good:
The audit results indicate this entity is well managed. The report contains few findings, and the entity has indicated most or all recommendations have already been, or will be, implemented. In addition, if applicable, many of the prior recommendations have been implemented.
Fair:
The audit results indicate this entity needs to improve operations in several areas. The report contains several findings, or one or more findings that require management's immediate attention, and/or the entity has indicated several recommendations will not be implemented. In addition, if applicable, several prior recommendations have not been implemented.
Poor:
The audit results indicate this entity needs to significantly improve operations. The report contains numerous findings that require management's immediate attention, and/or the entity has indicated most recommendations will not be implemented. In addition, if applicable, most prior recommendations have not been implemented.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
