YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2000-95
September 20, 2000

IMPORTANT:� The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Carter, 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 Carter County included additional areas of county operations, as well as the elected county officials.� The audit noted that the financial condition of the General Revenue Fund had improved since the prior audit.� The following concerns were noted as part of the audit: 

• The county does not have adequate procedures in place to track federal awards for the preparation of the schedule of expenditures of federal awards.� The county�s schedule contained numerous errors and omissions.� Without an accurate schedule, federal financial activity may not be audited and reported in accordance with federal audit requirements which could result in future reductions of federal funds.

• The current and former County Collectors had not filed annual settlements as required by state law.� Various errors were made in calculating commissions on property taxes collected during the year ended February 29, 2000.� As a result, approximately $9,600 is due from various political subdivisions to the General Revenue Fund.� The audit also recommended the County Collector increase efforts to identify current addresses of landowners.

• Bond and gun permit receipts totaling $300 could not be traced to deposits.� The prior audit also noted receipts that could not be traced to deposits.� At that time it was recommended that the Sheriff investigate the discrepancies and take action to ensure the undeposited receipts were recovered, or the Sheriff personally reimburse the amounts.� Several recommendations were also made to help ensure the proper accounting of future receipts.� While the Sheriff responded that those recommendations had been or would be implemented, most of the recommendations were not implemented, and monies are again unaccounted for.
  
• The Health Center does not have a depositary contract with its bank and the amount of collateral security pledged was not sufficient.� Budgets prepared for the Health Center and related financial records were not always accurate and complete.� Also, a financial statement was not published as required by state law.

Also included in the audit are recommendations related to improving personnel matters, compliance with IRS reporting requirements, bond coverage, and� the accounting� controls and procedures for the Circuit Clerk and Associate/Probate Division.

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