YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2000-88
September 8, 2000

IMPORTANT:� The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Wayne, 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 Wayne 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 County Commission reduced tax levies for the Special Road and Bridge Fund to provide part of the property tax reduction required by the sales tax ballot passed by Wayne County voters.� Prior reports noted Special Road and Bridge property taxes had been reduced a total of $408,000 from 1991 through 1997 without the county crediting any general sales tax monies to the Special Road and Bridge Fund to replace lost property taxes.� During the two years ended December 31, 1999, the county reduced the Special Road and Bridge property tax rate even further which resulted in an additional $202,000 reduction in property tax revenue without replacement.� As a result, more than $610,000 is due to the Special Road and Bridge Fund from the General Fund at December 31, 1999.� 

A related audit finding noted the County Commission has been distributing payments in lieu of tax of approximately $80,000 yearly from the U.S. Department of Interior to the Special Road and Bridge Fund and General Revenue Fund equally for several years.� These monies could be used for any government purpose.� Given the weak financial condition of the General Revenue Fund, it is questionable why the County Commission elected to distribute� any of these monies to the Special Road and Bridge Fund.�  

In its response to these findings, the County Commission indicated that it was unaware that the federal payments were unrestricted monies and that this oversight resulted in the Special Road and Bridge Fund being credited with one half of these monies for at least eighteen years.� The County Commission further responded that it intended to use the amounts mistakenly credited to the Special Road Bridge Fund to offset the amount owed by the General Revenue Fund.� The audit emphasized that if the County Commission believes it is justified to go back 18 years to correct these problems, it should also consider other improper distributions which occurred during those years.� Further, the County Commission now needs to establish and document decisions regarding interfund liabilities and begin operating those funds in a manner which ensures the financial integrity of each fund in the future. 

• As noted in the prior audit report, the county has not sufficiently reduced its property tax revenues by 50 percent of sales tax revenues as provided in the ballot issue passed by the Wayne County voters.� During the two years ended December 31, 1999, reductions were made, however, to further bring the county into compliance with the sales tax proposal, the County Commission should reduce the 2000 property tax revenues by an additional $96,290 for the excess property taxes collected in prior years.

The County Commission acted contrary to legal advice when it granted a mid-term raise to the Associate Commissioners.� The Prosecuting Attorney concluded that such �a mid-term salary increase for Associate Commissioners would be unconstitutional and is therefore prohibited�.� The County Commission said they would abide by the results of a pending lawsuit in another county.

With the exception of road and bridge employees, the County Commission has not established written personnel policies regarding vacation and sick leave, compensatory time, and overtime.�� Records of leave, overtime worked and compensatory time balances are not centrally maintained.� Currently each officeholder is responsible for individual office policies.�

Also included in the audit are recommendations to improve county budgetary procedures, depositary agreements and some expenditure policies. Contractual procedures of the Senate Bill 40 Board also need improvement.� In addition, the audit recommended the County Clerk maintain an account book with the County Collector to provide more controls and help verify annual settlements.�

Complete Audit Report