YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2000-74
August 11, 2000

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

�           The budgets of the Special Road and Bridge Fund did not present a reasonable estimate of the fund�s expenditures, and as such, did not reflect realistic estimates or goals of what the county intended to accomplish during the budget year.� State law allows the County Commission to impose a 3% administrative service fee on the Special Road and Bridge Fund. Based on the fund�s budgeted expenditures, the county transferred approximately $117,000 to the General Revenue Fund during the audit period.� Had more reasonable budget estimates or actual disbursements been used the transfer amounts to the General Revenue Fund would have been $40,000 less. The County Commission needs to review its budgeting procedures for the Special Road and Bridge Fund as well as reevaluate the amounts being transferred annually for the administrative service fee.

�                    The county and health center do not have procedures in place to track federal monies for the preparation of the schedule of expenditures of federal awards.� The county�s schedule of expenditures of federal awards contained numerous errors and omissions. An accurate schedule of expenditures of federal awards is necessary to ensure federal financial activity is audited and reported in accordance with federal requirements.

Also, included in the audit are recommendations to improve the accounting controls and procedures for the Health Center, Prosecuting Attorney, Assessor, Circuit Clerk and Sheriff.� Several of the accounting control and procedure issues applicable to the Sheriff, Prosecuting Attorney and Circuit Clerk have been noted similarly in prior audits.� The audit also suggested improvements be made in the county�s computer controls, such as changing passwords periodically and developing a formal contingency plan.�

Complete Audit Report