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YELLOW SHEET Office of the State Auditor of Missouri |
January 16, 2004
Report No. 2004-05
The
following problems were discovered as a result of an audit conducted by our
office of the Department of Public Safety, Missouri Veterans Commission, Mexico
Veterans' Home.
The
Mexico Veterans' Home Assistance League is a not-for-profit organization which
raises private funds to benefit residents of the Mexico Veterans' Home.� Donation, as well as canteen proceeds, are
used for this purpose.� The Assistance
League purchases items to sell through the canteen, coordinates and pays for
events and activities for residents, and purchases items for common areas
located in the facility.� Some
expenditures did not appear to benefit residents, including approximately
$8,300 spent for costs related to volunteer banquets and recognition
awards.� Additionally, proper
authorization was not obtained for expenditures as required by the league's
by-laws.
Several league expenditures reviewed did not have proper supporting documentation.� We noted several cash withdrawals from the league's bank account, which were used to fund outings for the residents.� Cash amounts withdrawn were frequently for several hundred dollars.� The related documentation was limited and generally consisted of some notations showing the anticipated number of participants and estimated costs; however, there was no documentation submitted to support the monies spent.
Some
state paid employees at the facility spend a portion of their work week
performing job duties for the Assistance League.� Allowing state paid employees to perform
duties associated with the Assistance League appears to be a violation of the
Missouri Constitution, which prohibits state agencies from making donations to
not-for-profit corporations.
The
audit also included recommendations to the Assistance League regarding a formal
bidding policy and collateralized securities.�
In addition, the audit includes recommendations related to the
facility's background checks and payroll procedures.�