YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2000-92
September 18, 2000

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

• As similarly noted in prior audit reports, the financial condition of the county�s General Revenue Fund remains weak.� Although a half-cent law enforcement sales tax became effective January 1999 and allowed law enforcement expenses to be moved to a new Law Enforcement Sales Tax Fund, the cash balance of the General Revenue Fund only increased $12,117.� Our prior audit report also noted that approximately $236,000 was owed to the Special Road and Bridge Fund from the General Revenue Fund as a result of excessive administrative transfers.� The county reduced the debt by approximately $12,000 and indicated it plans to repay $6,128 in 2000, but does not plan to repay the remaining excess amounts due to the Special Road and Bridge Fund because the General Revenue Fund cannot afford it.�

• The county did not prepare a complete and accurate schedule of expenditures of federal awards for each year of the audit period as required.� Without an accurate schedule of expenditures of federal awards, federal financial activity may not be audited and reported in accordance with federal requirements which could result in future reductions of federal funds.� Also, as in the prior audit report, problems were noted regarding the county�s handling of federal bridge funds.� The county has not established procedures to ensure these federal monies are disbursed to contractors on a timely basis. ��In addition, there was no documentation to indicate that the County Commission considered three engineering firms when procuring engineering services as required by state statute.� 

• The County Clerk does not prepare adequate records of County Commission meetings.� In January 2000, the County Clerk discontinued preparing records of the meetings.� State statutes require the County Clerk to keep an accurate record of the orders, rules, and proceedings of the County Commission and the Sunshine Law requires that each public governmental body shall make that body�s public records available for inspection and copying by the public. 

• Although hourly-paid employees prepare time sheets, such records of actual time worked are not maintained by salaried employees representing about one half of the county employees.� The Fair Labor Standards Act requires employers to keep accurate records of actual time worked by employees, including compensatory time earned, taken, or paid.

Also, included in the audit are recommendations to improve the accounting controls and procedures for the Health Center, County Clerk, Prosecuting Attorney, Ex Officio Recorder of Deeds, and Sheriff.� The accounting control and procedure issues applicable to the Ex Officio Recorder of Deeds and County Clerk have been noted similarly in prior audits.� The audit also suggested improvements be made in the county�s budgetary and expenditure procedures, and apportionment of railroad and utility taxes.���

Complete Audit Report