YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2006-45

August 2006

IMPORTANT:  The Missouri State Auditor is required by state law to conduct audits once every 4 years in counties, like Worth, that do not have a county auditor.  In addition to a financial audit of county 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 Worth 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's procedures for expenditures and monitoring of contracts are in need of improvement.  While the county has procedures to solicit bids for major purchases, the county did not always solicit bids and/or retain bid documentation for various purchases including insurance, copy machines, and prisoner boarding at a private facility.  Also, the patron gravel program was not adequately monitored and fuel usage records were not maintained for the Road and Bridge Department.  In addition, several budgets were overspent, compliance with the economic development contract was not monitored and the county donated $1,066 in federal grant monies to a local skating rink.

• Time sheets were not submitted by a part-time employee funded by a federal grant and donations paid by patrons to the Senior Citizens Services Board's in-home service providers were not reported to the county and the IRS.

• The Prosecuting Attorney's procedures related to accounting for receipts and open-items, as well as the system for tracking bad check complaints received, are in need of improvement.  While prenumbered receipt slips were issued for most monies received, not all receipts were recorded on the summary monthly fee log.  Also, monthly open-items listings (liabilities) were not prepared, and consequently liabilities were not reconciled to the cash balance.  As a result of the lax controls, some receipts, while deposited, were not remitted to the County Treasurer or other parties and an unidentified balance in the bank account had increased significantly since the last audit.  Part of the unidentified balance was used to pay office expenses.  In addition, a log or other record was not maintained to account for all bad check complaints filed with the Prosecuting Attorney and their ultimate disposition.

• Sheriff's Office procedures related to the processing of monies collected and bank account reconciliations are in need of improvement.  The method of payment was not always noted on receipt slips and the composition of receipt slips issued was not reconciled to the amounts posted on the monthly fee log or to the composition of deposits.  In addition, a checkbook balance was not maintained and reconciled monthly to the bank statements for the Sheriff's account.

Complete Audit Report