YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2000-107
September 27, 2000

IMPORTANT:� The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Caldwell, 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 Caldwell County included additional areas of county operations, as well as the elected county officials.� The following concerns were noted as part of the audit: 

• In the spring of 2000, county officials were notified that various political subdivisions in the county had not received some property tax distributions from the Kidder Township Collector.� According to statements filed for the months of November 1999 through February 2000, approximately $257,000 was collected and distributed, however $5,869 was not paid to several political subdivisions.� Tax collections were deposited and distributions were made from the Kidder Township collector bank account.� Additionally, numerous personal disbursements were made from this account.� As of April 5, 2000, only $93 remained in the account and the amount of personal disbursements exceeded allowable commissions by more than $5,200.

Additionally, one taxpayer included on the delinquent tax list produced a canceled check and paid receipt showing $1,030 had been paid.� There was no evidence that these collections were ever distributed to the various political subdivisions. The county needs to review the yearly settlement as well as the unpaid amounts on the delinquent tax list and take the appropriate action.� The county also needs to ensure that statutorily required bonds are obtained for all township collectors. 

• The county does not have procedures in place to ensure budget documents are properly prepared and accurately reflect financial activities of the county.� By the County Clerk not maintaining an independent record of revenues and expenditures for reconciliation with the County Treasurer, inaccuracies went undetected.

• The county has not sufficiently reduced it property tax revenues by 50 percent of the sales tax revenues as provided in the ballot issue passed by the Caldwell county voters under the provisions of Missouri statute.� The county had no supporting documentation to explain why the tax levy was not decreased in 1999 and had no documentation for prior years levy calculations.� The county should consider the excess collections when computing future property tax rollbacks.

• The county does not have procedures in place to adequately track federal assistance for preparation of the schedule of expenditures of federal awards.� The information presented for most programs did not agree with the county�s expenditures records.� Without an accurate schedule of expenditures of federal awards, federal financial activity may not be audited and reported in accordance with federal audit requirements which could result in future reductions of federal funds.

The audit recommended improvements in other budgeting procedures, county expenditure procedures, personnel policies and procedures, fixed assets and property tax book controls.� Also included in the report are recommendations on accounting controls for the Circuit Clerk, Sheriff, Prosecuting Attorney and County Clerk.

Complete Audit Report