YELLOW SHEET
Office of the State Auditor of Missouri
Claire McCaskill
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YELLOW SHEET Office of the State Auditor of Missouri |
Report No. 2006-53
September 2006
IMPORTANT: The Missouri State Auditor is required by state law to conduct audits once every 4 years in counties, like Audrain, that do not have a county auditor. In addition to a financial 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.
The financial condition of the General Revenue Fund has declined significantly since 2004. The cash balance decreased from $1,650,027 at January 1, 2004 to $859,649 at December 31, 2005. Disbursements of the General Revenue Fund increased due to transfers made to the Law Enforcement Sales Tax Fund to cover jail maintenance costs. Transfers increased from $802,000 in 2003, to $985,000 in 2004, and to $1,300,000 in 2005. Other items also contributed to the decline of the financial condition of the General Revenue Fund.
Formal budgets were not prepared for various county funds. Actual expenditures exceeded the budgeted amounts in various funds, and the county has significantly overestimated the amounts budgeted for the Bridge Trust Fund revenues and expenditures. The annual published financial statements did not include financial activity of some funds, and did not have expenditures listed by vendors for most funds. In addition, expenditures were approved in excess of available monies resulting in deficit fund balances for several county funds.
In the County Treasurer�s office, unreconciled differences are not completely investigated when bank reconciliations are performed. Federal payroll taxes were not always paid timely resulting in approximately $9,000 in penalties to the county. Monies held in the Tax Sale Surplus fund for more than three years have not been distributed, and a stock investment has not been properly monitored.
In the Circuit Clerk�s office, old inactive cases related to monies in an old checking account have not been resolved. Receipts are not always deposited on a timely basis, and documentation is not maintained of the differences between the composition of receipts and the composition of deposits. Checks have been outstanding for a considerable length of time, and an expenditure from the Circuit Interest Fund did not appear to be a proper use of county funds.
In the County Collector�s office, bank reconciliations are not formally documented, and monthly listings of liabilities are not prepared and reconciled to the reconciled bank balance. Monthly unreconcilable differences fluctuated and were not investigated.
Calculation errors were made and surtax collections were incorrectly distributed to various political subdivisions. In addition, the County Commission does not perform a review of the County Collector�s annual settlement.
In the Associate Court�s office, receipts are not posted to the computer system on a timely basis or deposited intact and on a timely basis. Current procedures allow for receipts to not be posted timely, mistakes to be made when posting, and an excessive amount of receipts to not be deposited timely. Checks received are not restrictively endorsed immediately upon receipt, and the composition of receipts is not reconciled to the composition of deposits.
Sheriff�s department employees have been provided meals at a cost of $1 from the jail. Checks remain outstanding for a considerable length of time, and unreconciled differences are not properly investigated when bank reconciliations are performed. In addition, the composition of receipts is not reconciled to the composition of deposits.
Budgets prepared for the Hospital Tax Fund and the Rothwell Trust Fund were not accurate and complete. In addition, actual expenditures for these funds exceeded the budgeted amounts.
A formal budget projecting the revenues and expenditures of the Emergency 911 Board Fund for 2006 was not prepared and the Board had not adequately made plans for its operations or repayment of its debt. At February 28, 2006, the Emergency 911 Board Fund owed Audrain County and the City of Mexico approximately $67,000 and $133,000, respectively.
Another area where concerns were noted related to capital assets. In addition, the audit included recommendations to the Assessor and the Public Administrator.