YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2000-94
September 19, 2000

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

• In February 2000, the county purchased 73 acres of land for approximately $78,000 to be used to quarry hill gravel.� This purchase was made without obtaining an appraisal on the property.� While no cost/benefit analysis was performed at the time of purchase, the County Commission has since estimated that the county will save approximately $220,000 over the next 15 years.� The audit suggested the county track the cost and update their analysis on a regular basis.� 

• Prior to leaving office in December 1998, the former Prosecuting Attorney paid approximately $5,000 for nine cell phones with a one year usage package for each phone.� There was no documentation assessing the need for any of the cell phones purchased and two of the nine cell phones were never used.� In addition, the purchase was not bid in accordance with state law.� Furthermore, the former Prosecuting Attorney paid herself $600 from the Prosecuting Attorney Bad Check Fund for court appearances made in late December 1998.� The additional compensation appears to be in excess of the amount approved by the salary commission and was not reported on the former Prosecuting Attorney�s W-2 form nor were payroll taxes withheld.� 

• The former Prosecuting Attorney paid herself over $850, including $585 for meals and $224 for gasoline.� Documentation to support this payment was not adequate.� In addition, the former Prosecuting Attorney paid $200 bonuses to each of her two secretaries.� No supporting documentation could be located to adequately support these payments.

The audit recommended improvements be made in issuing Forms 1099-MISC in accordance with IRS regulations and that expenditures not be authorized in excess of budgeted amounts.� Also, included in the audit are recommendations to improve the records and procedures for the Public Administrator, Prosecuting Attorney, Circuit Clerk, County Clerk, and County Assessor.� Several of the record and procedure issues applicable to the Prosecuting Attorney, Circuit Clerk, and County Clerk have been noted similarly in prior audits.

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