YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

December 31, 2003

Report No. 2003-122

IMPORTANT:� The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Holt, 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 Holt 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 monies received from federal Highway Planning and Construction � Offsystem Bridge Replacement (BRO) projects are distributed to contractors on a timely basis.� There were 14 reimbursements, totaling over $625,000, that were held by the county longer than allowed by the Missouri Department of Transportation�s Local Program Agency Manual.
  
   

• Actions of the salary commission in approving a raise for the County Treasurer in October 2002 were not supported by a written legal opinion.

The audit also suggested improvements to personnel procedures relating to time sheets and leave records, computer controls concerning passwords and backup plans, and fixed asset records and policies.� In addition, the audit included a recommendation to the Sheriff concerning reconciliations.

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