YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

August 13, 2002

Report No. 2002-57

IMPORTANT:� The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Osage, which do not have a county auditor.� However, to assist such counties in meeting federal audit requirements, the State Auditor will also provide 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 it 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 Osage 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 county has not established cash management procedures to ensure the minimum time elapses between its receipt of federal project monies and the distribution of such monies to contractors.

�        Formal budgets were not prepared for some county funds and disbursements were made in excess of approved budgets for various funds.� Additionally, the county's annual published financial statements did not include the financial activity of some funds.

�        Bids were not always solicited, nor bid documentation always retained for various purchases made by the county.

�        On May 15, 2001, the Missouri Supreme Court handed down an opinion that holds that all raises given pursuant to Section 50.333.13 RSMo, are unconstitutional.� Based on the Supreme Court decision, the raises given to each of the Associate County Commissioners, totaling approximately $8,000 should be repaid.

�        Time records are not prepared by full-time employees of the Sheriff's Department.� Records of annual leave, sick leave, and compensatory time balances are not centrally maintained.� The County Commission has not established written personnel policies regarding vacation and sick leave, compensatory time and overtime for Sheriff's Department employees. 

�        Several weaknesses were identified in the offices of the Sheriff and the Prosecuting Attorney, including segregation of duties, receipts not deposited on a timely basis, and old outstanding checks.

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