YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Purchase orders were not always prepared in accordance with district policy.� Purchase orders were not prepared for 19 of 26 expenditures reviewed, including $2,779 and $1,427 for building materials and $3,936 for athletic supplies. 

The district made payments in 2001 of $4,800 to the superintendent for vehicle allowance and $1,000 to each of the two principals for district travel. Additionally, teachers are each paid $100 for completing in-service training.�� These payments appear to be taxable compensation but are not reported on the employees' W-2 forms.� 

Adequate supporting documentation was not retained for many purchases made on the district's credit cards.� The district has three credit cards used for travel and other purposes.� Credit card purchases totaled $9,466 for the year ended June 30, 2001, and invoices or other supporting documentation was not retained for $2,688, of the total credit card expenditures.� The purpose of some credit card expenditures, especially travel expenditures, was not documented, including $237 for food and beverage at the Lake of the Ozarks. 

Controls over the petty cash account need to be improved.� The duties of handling, recording , distributing, and reconciling the petty cash account need to be segregated.� In addition, the school board needs to review and approve all petty cash expenditures.� The petty cash account should be used only for small and emergency purchases, and several expenditures were made from the account which appear inappropriate including $1,950 for furniture, $300 for in-service training, $220 for a retirement gift, and $175 for graduation supplies.�������������������������

The audit also includes some matters related to expenditures, rentals and leases, fixed assets procedures, and petty cash procedures, upon which the school district should consider and take appropriate corrective action.

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