YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2000-58
July 19, 2000

IMPORTANT:� The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Pike, 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 Pike County included additional areas of county operations, as well as the elected county officials.� Some of the current recommendations are similar to prior recommendations that were not implemented by county officials.� The following concerns were noted as part of the audit:�����������������

• Pike County�s General Revenue and Law Enforcement Sales Tax funds have been experiencing declining cash balances.� These funds provide funding for most general operations of the county, and based on the county�s budget for the year ended December 31, 2000, the ending cash balances of the General Revenue and Law Enforcement Sales Tax funds are projected to be a deficit of $97,612 and $0 respectively.� The audit report suggested the County Commission take the necessary steps to improve the financial condition of the General Revenue and Law Enforcement Sales Tax funds.� 

• The Home Health Department bills various entities (i.e. Medicare, Medicaid, and private insurance companies) for the services provided to patients.� The department did not adequately monitor unpaid billings, and, as a result, failed to receive approximately $50,000 in Medicare reimbursements due for services provided.� In addition, the billings are not always prepared in a timely manner.� The audit noted that four of seven billings to private insurance companies were sent from three to five months after the service was provided.� Furthermore, accounting duties are not adequately segregated and there are no documented independent reviews of the accounting records.� 

• As noted in two prior audit reports, the securities pledged by one of the county�s banks at December 31, 1999, were not sufficient to cover the county funds in excess of FDIC coverage by approximately $468,000.� In addition, during January 2000 and 1999, the collateral securities pledged by the same bank were not sufficient to cover the county funds in excess of FDIC coverage by approximately $4,700,000 and $1,590,000, respectively.� Inadequate collateral securities leave county funds unsecured and subject to loss in the event of a bank failure.� For the third time it was recommended that the County Commission ensure adequate collateral securities are pledged for all county funds on deposit in excess of FDIC coverage.��

As in the prior audit report, the audit again recommended that the Sheriff�s Department reconcile individual balances of prisoners� monies and commissary profits to the bank account monthly and that the County Treasurer prepare complete reconciliations between the county fund ledgers and bank statements monthly and resolve any differences timely.

The audit also suggested the County Treasurer ensure the fund ledgers reflect accurate book balances, the Circuit Clerk review old bonds and old inactive cases to determine if monies can be disposed of, and that the county ensure federal monies are disbursed timely in accordance with federal law.

Complete Audit Report