Auditor Seal

YELLOW SHEET

Office of the State Auditor of Missouri
Claire McCaskill

 

Report No. 2004-48

June 15, 2004

 

The following problems were discovered as a result of an audit conducted by our office of the Department of Public Safety, Missouri Veterans Commission, Warrensburg Veterans' Home.


The Warrensburg Veterans' Home Assistance League is a not-for-profit organization which raises private funds to benefit residents of the Warrensburg Veterans' Home.  Donations, as well as canteen and vending machine proceeds, are used for this purpose.

A review of purchases noted some expenditures did not appear to benefit the residents.  During 2002 and 2003, $10,233 was spent for costs related to volunteer banquets and staff recognition awards, including $4,675 for employee recognition and retention and $5,459 for two volunteer banquets.

Residents, employees, and visitors may all purchase items from the vending machines owned and operated by an independent vendor.  The facility receives commissions from the vendor and deposits these into a separate fund within the Fund.  These monies are used for employee recognition awards, flowers for staff members, the annual staff picnic, and the annual employee Christmas party.  As a result, these expenditures do not appear to benefit the residents.  Recent audits of other homes noted that vending machine profits at those homes are deposited in the Assistance League accounts to be used for the benefit of the residents.  To ensure consistency with other homes operating in the state, vending commissions should be used for the benefit of the residents.

Some state paid employees at the facility spend a portion of their workweek 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 the petty cash fund.

Complete Audit Report


Missouri State Auditor's Office
moaudit@auditor.mo.gov