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