YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

July 2, 2001

Report No. 2001-51

IMPORTANT:� The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Scotland, 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 Scotland 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 Prosecuting Attorney does not have an office in the courthouse; instead she performs her county duties from an office building used in the operation of her private law practice.� The county does not have a written agreement with the Prosecuting Attorney and pays her $340 per month as an allowance for the office expenses which include utilities, telephone, library/upkeep, supplies, and postage. The Prosecuting Attorney has not documented the actual costs of the office or the percentage of the office costs that relate to official duties. These unsupported expense reimbursements were not reported on her W-2 forms.� �

During December 2000, the Prosecuting Attorney mistakenly submitted two invoices for utilities and telephone expenses, totaling approximately $480, to be paid from the Prosecuting Attorney Bad Check Fund.� The invoices included the utilities and telephone expense for the entire building, which the Prosecuting Attorney also uses for her private practice and as a place of residence.�  

• Time sheets were inaccurate and were not always prepared or maintained.� Leave records were not monitored against county policies and the issue of overtime/compensatory time was not adequately addressed in the county�s personnel policy.

• A state law, Section 50.333.13, RSMo, enacted in 1997, allowed salary commissions meeting in 1997 to provide mid-term salary increases for associate county commissioners elected in 1996 due to the fact that their terms were increased from two years to four.� Based on this law, in 1999 Scotland County�s Associate County Commissioners salaries were each increased approximately $1,900 yearly, according to information from the County Clerk.

On May 15, 2001, the Missouri Supreme Court handed down an opinion that holds that all raises given pursuant to this statute section are unconstitutional.� Based on the Supreme Court decision, the raises given to each of the Associate County Commissioners, totaling approximately $3,800 for the two years ended December 31, 2000, should be repaid.� Any raises given to other officials within their term of office should also be re-evaluated for propriety. 

Also included in the audit are recommendations to improve the accounting� controls and procedures for the Prosecuting Attorney and Sheriff.� The audit also suggested improvements be made in the county�s bidding procedures, restricted funds accounting, property tax system and computer controls, fixed assets and preparation of county commission minutes.� Several of these issues had been noted in prior audits.

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