YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2000-100
September 25, 2000

IMPORTANT:  The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Douglas, which do not have a county auditor.  However, to assist such counties in meeting federal audit requirements, the State Auditor will also perform a financial and compliance audit of various county operating funds every two years.  This voluntary service to Missouri counties can only be provided when state auditing resources are available and does not interfere with the State Auditor’s constitutional responsibility of auditing state government. 

Once every four years, the State Auditor’s statutory audit will cover additional areas of county operations, as well as the elected county officials,  as required by Missouri’s Constitution.  

This audit of Douglas County was a financial and compliance audit of various county operating funds.  The following concerns were noted as part of the audit: 

• The county does not have adequate procedures in place to track federal awards for the preparation of the schedule of expenditures of federal awards.  The county’s schedule contained numerous errors and omissions.  In 1999 the county reported expenditures for only two of its 19 federal programs, resulting in a significant understatement.  Without an accurate schedule, federal financial activity may not be audited and reported in accordance with federal audit requirements which could result in future reductions of federal funds.

• In July 1997, the county was awarded $54,040 in federal assistance from the U.S. Department of Justice under the COPS Universal Hiring program, and in April 1998, they were awarded another $54,040 as part of a supplemental award.  

The Sheriff’s department was responsible for filing requests for payment under this grant program, and as of August 2000, had made only one request.   The County received $21,133 in grant funds in June 1998.  As a result, $52,607 in available grant funds through June 30, 2000 has been expended, but has not been requested or received by the county.

The failure to submit requests for payment on a timely basis places an unnecessary financial burden on the county and could result in the loss of grant funds. 

Complete Audit Report