YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

August 7, 2001

Report No. 2001-61

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

• 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 Laclede county�s Associate County Commissioners salaries were each increased approximately $4,800 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 $9,770, for the two years ended December 31, 2000, should be repaid.� In light of the ruling, any raises given to other officials within their term of office should be re-evaluated for propriety. 

• The county did not always solicit bids for various purchases.� In addition, the county paid in excess of $40,000 to a law firm without soliciting proposals or documenting their basis for selecting the law firm.� On one matter involving official salaries, the county paid $20,000 ($12,500 representing an advance fee for representing the officials in the Appeal to the Missouri Supreme Court).

• The former Sheriff entered into a written agreement with a telephone company to provide telephone services to county prisoners.� The agreement provided that the sheriff�s department receive commissions based on collect telephone calls made by prisoners at the jail.� During the time period of January 1999 through September 30, 2000, the Sheriff�s department earned $38,875 in telephone commissions.� Our review of the inmate phone system indicated the following concerns:

The telephone company was disbursing only a portion of the county�s telephone commission ($1,000 each month) to the sheriff�s department.� The remaining commission was held by the company and used by the former Sheriff for various purchases, including a copier, fax machine, two computers, television, VCR, as well as $2,065 for Sheriff department calendars that appeared to promote the former Sheriff�s election (which the Missouri Ethics Commission found to be in violation of state law and Sheriff Dotson reimbursed the county). These purchases were not handled through the county�s normal disbursement process and no record was maintained to document the purchases.          

Telephone commissions should be deposited into the county treasury and the County Commission should authorize their use.� State law requires every county official who receives any fees or other remuneration for official services to pay such money to the county treasurer.

• In June 1999, the county authorized the turnover of approximately $22,000 of unclaimed fees to general revenue, instead of remitting the fees to the state.� The majority of these funds represented unidentified monies from the former Prosecuting Attorney that had been turned over to the Unclaimed Fees fund by the current Prosecuting Attorney.� 

Also included in the audit are recommendations to improve the accounting� controls and procedures for the County Health Center, County Clerk, County Collector, County Sheriff and Circuit Clerk.� The audit also suggested improvements be made in the county�s budgeting procedures and financial reporting.� Several of these issues had been noted in prior audits.

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