YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2005-15

March 2005

IMPORTANT:  The Missouri State Auditor is required by state law to conduct audits once every 4 years in counties, like Shelby, that do not have a county auditor.  In addition to a financial and compliance audit of various county operating funds, the State Auditor's statutory audit covers additional areas of county operations, as well as the elected county officials, as required by Missouri's Constitution.

This audit of Shelby 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 former Sheriff authorized the payment of additional compensation totaling $1,192 to five employees.  Documentation to support these payments was not adequate and consisted only of statements signed by the former Sheriff that the payments were for "extra duty," but did not include any documentation of extra time worked beyond that recorded in applicable time sheets.  These payments appear questionable and could represent additional compensation for services previously rendered, which is prohibited by the Missouri Constitution.

�        The county is paying the medical insurance and providing other benefits, such as awarding holidays and leave time, to a part-time employee of the County Collector's office.  While the County Commission and County Collector approved the payment of this employee's medical insurance, there is no documented approval to provide the other benefits. The county's personnel manual states that a part-time employee is not eligible for employee benefits unless specifically negotiated with the County Commission and the office holder for whom the employee works.

�        The county should implement improvements to its computer systems used for assessment and property tax information and for budgetary and accounting information.  The county should implement password and other procedures to limit access to the various programs and information and a security system to detect or prevent incorrect log-on attempts.  In addition, backup disks of information should be prepared more frequently and should be stored at an off-site location.

The audit also includes recommendations regarding county road and bridge maintenance plans, general fixed assets, and schedule of expenditures of federal awards, as well as recommendations to improve accounting controls and procedures for the County Collector, Prosecuting Attorney, and Health Center.

Complete Audit Report