Report No. 2008-38
June 2008
Complete Audit Report

IMPORTANT: The Missouri State Auditor is required by state law to conduct audits once every four years in counties, such as Clark, 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 the Missouri Constitution.

The General Revenue Fund and the ½ Cent Sales Tax-Jail Operations Fund remain in poor financial condition. While receipts have generally increased, the county's spending has also increased. Although the County Commission has held steady or reduced disbursements in some areas, those changes have generally not kept pace with the changes in related receipts and have been offset somewhat by increased disbursements in other areas.

The county’s budgetary practices are in need of improvement. Actual disbursements exceeded budgeted amounts for some funds and budgets were not prepared for several funds. In addition, the County Commission consistently budgeted a deficit fund balance for the ½ Cent Sales Tax-Jail Operations Fund. The approved budget documents indicate a zero balance for most funds at year end; however, several of the funds often end with a significant balance. Administrative service fee transfers from the Special Road and Bridge Fund to the General Revenue Fund were excessive given unreasonable budget estimates.

Controls and procedures over the Sheriff's Department need improvement. Cash custody and recordkeeping duties have not been adequately segregated and the civil process log is not updated to show when fees are received. Accounting records are not reconciled with the bank account balance monthly and procedures for handling old outstanding checks need improvement. Board bill procedures are not adequate and the Sheriff does not have written contracts with the surrounding counties for boarding prisoners. A cost analysis of the county preparing inmate meals versus outsourcing was not performed. Records and monitoring procedures for county vehicles used by Sheriff’s deputies are not sufficient. Fees withheld from a partition sale were not calculated in accordance with state laws. Accounting procedures for inmate and commissary monies are in need of improvement.

Controls and procedures over the Associate Circuit Court are in need of improvement. Duties of receiving, recording, and depositing receipts are not adequately segregated, the numerical sequences of receipt slips and checks are not accounted for properly and manual receipt slips are not traced to the Justice Information System (JIS). In addition, monies received are not always deposited in a timely manner, bank reconciliations are not prepared on a timely basis and bonds posted by defendants who fail to make the required court appearances are not followed up on adequately. Also, the court could not provide legal authority for the collection of community service fees from defendants ordered to perform community service.

Controls and procedures over the Circuit Clerk's office need improvement. Accrued case costs are not actively monitored and pursued, bank reconciliations are not prepared on a timely basis and records and monitoring procedures for open items listings (liabilities) are not sufficient. Also, interest earned from the Circuit Clerk's general account is not transferred to the Circuit Clerk Interest Fund on a timely basis and some invoices were not maintained for purchases made from the Interest Fund.

The Prosecuting Attorney frequently reduces charges filed on traffic tickets by requiring the defendants to make a “donation” to the Clark County Youth Fund or Dollars for Scholars Fund as a condition of reducing the charges and entering into a plea bargain. The donations are distributed to various not-for-profit organizations and other political subdivisions; however, the Prosecuting Attorney does not make the judge aware of the donation when presenting the plea bargain to the court. While the Prosecuting Attorney indicated he believed the funds benefited the youth of the county, the Associate Circuit Judge said since the last audit, he had sent a letter to the Prosecuting Attorney requesting this practice cease.

Controls and procedures over the Drug Court need improvement. Prenumbered receipt slips are not used for monies received, the method of payment is not always noted on receipt slips issued, and the composition of the receipt slips is not reconciled to the composition of the deposits. Also, some concerns were noted regarding disbursements, including lack of bid documentation, not canceling invoices and potentially unreasonable expenses.

Also included in the report are recommendations related to county procedures, payroll and personnel procedures, county disbursements, capital assets, and computer controls. The audit also suggested improvements to the procedures of the Ex Officio Recorder of Deeds.

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