YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

September 18, 2001

Report No. 2001-87

IMPORTANT:� The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Howell, 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 Howell 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 Howell County�s Associate County Commissioners salaries were each increased approximately $5,400 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 $10,800, 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. 

• The county does not have procedures in place to track federal awards for preparation of the schedule of expenditures of federal awards.� The county prepared a schedule for the years ended December 31, 2000 and 1999; however, the schedule contained a number of errors and omissions with expenditures understated by $56,304 and $93,253, respectively.� 

• State law allows county officials, with the approval of the County Commission, to perform services for cities that they normally provide to the county for additional compensation.� The county entered into written contracts in 1988 and 1990 which provide for the county to collect property taxes for the city of West Plains and the city of Willow Springs, respectively.

The County Collector currently assesses a penalty on delinquent city tax payments in accordance with state law, which provides for a 5 percent penalty to be collected from the taxpayer, and the proceeds are to be distributed two-fifths to the General Revenue Fund and three-fifths to the County Employees� Retirement Fund.� However, the County Collector personally retains these penalties. 

The audit also includes some matters related to budgetary practices, published financial statements, collateral securities, and the Juvenile Office, upon which the county should consider and take appropriate corrective action.�

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