YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2000-47
June 19, 2000

The following problems were discovered as a result of a review conducted by our office of the Department of Corrections, Maryville Treatment Center.

The Maryville Treatment Center which opened in December 1996, is located in northwestern Missouri and is a minimum security treatment facility. The facility occupies 11 acres on the site of the former Mount Alverno convent and school. The facility originally opened with 225 inmate beds. Phase two of the facility was completed during May 1998, and the facility now has a capacity of 525 male inmates who have a history of alcohol and drug abuse. Inmates are expected to follow a rigid and demanding schedule of activities to prepare them for a successful and sober transition to the community.

In July 1997, the Department of Corrections, Division of Offender Rehabilitative Services entered into a contract with Northwest Missouri State University to provide adult basic education and substance abuse treatment to Maryville Treatment Center inmates. Contract expenditures totaled approximately $1,375,000 and $1,112,000 for the fiscal years ended June 30, 1999, and 1998, respectively. Several individuals are employed full-time by the university to provide the education and treatment program services. These individuals work out of office space maintained at the Maryville Treatment Center. The university accumulates the program costs and bills the Maryville Treatment Center monthly. We reviewed the contract terms, monthly billings, and supporting documentation, and noted some concerns.

A review of the Maryville Treatment Center business office files pertaining to the university invoices for September 1998 and March 1999 revealed that the treatment center staff is approving significant monthly payments (now exceeding $100,000/month) without obtaining all appropriate supporting documentation. Such approvals were provided even though discrepancies existed between much of the supporting documentation initially obtained and the itemized expenditure entries. The discrepancies were resolved once we obtained the actual invoices and other documentation from the university. Without careful review procedures in place, inappropriate billings and/or errors could occur and go undetected.

The State Auditor's Office recommends that the Maryville Treatment Center work with the university to obtain and/or review all supporting documentation and resolve any questions or discrepancies prior to approving the university invoices for payment.

Since October 1995, the Maryville Treatment Center has utilized the same private vendor to provide and service vending machines at the facility. Commissions paid to the treatment center by the vending company did not comply with their agreement and resulted in an underpayment of $1,873 from October 1995 through September 1999. Although monthly commission statements provided the necessary details to monitor payments, the errors had not been detected by treatment center staff. Once we brought this to their attention, the vending company was contacted and the treatment center subsequently received $1,873 in additional commissions in December 1999.

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