Report No. 2008-73
October 2008
Complete Audit Report

The following findings were included in our audit report on Shelby County:

Numerous control weaknesses were noted during our review of the County Collector’s procedures. Accounting duties are not adequately segregated, the composition of receipts is not reconciled to the composition of bank deposits, bank reconciliations are not prepared, and voided checks are not maintained. Procedures to prepare monthly and annual settlements are not adequate, and the annual settlement for the year ended February 29, 2008, contained errors and omissions. The County Collector does not have written agreements with the cities for which he performs property tax collection services and does not distribute some commissions in accordance with state law. The former County Collector used Tax Maintenance Fund monies to purchase computer equipment used by another county official.

The County Collector does not prepare listings of open items (liabilities) and does not reconcile liabilities to the cash balance. Upon our request, the County Collector prepared a listing, and at February 29, 2008, liabilities exceeded the cash balance by approximately $2,900. The County Collector should follow up on the difference between the cash balance and liabilities, and reimburse his official account for any shortages in the account.

Property tax system procedures and computer controls need improvement. Reports of changes made to the tax records are not prepared. Neither the County Clerk nor the County Commission adequately review property tax additions and abatements. The County Clerk's account book with the County Collector is incomplete, and the County Collector's annual settlement is not reviewed for accuracy. Also, computer system security and backup procedures are not adequate.

The financial condition of the General Revenue and Special Road and Bridge Funds has declined in the past two years. The county cannot continue to spend more than is received in these funds. Consideration should be given to finding ways to increase receipts and decrease disbursements to improve the financial condition of these funds.

Also included in the report are recommendations related to capital asset records and procedures, controls over fuel usage, cellular phone policies, written contracts with organizations that receive county funds, sale of road and bridge materials, and bidding procedures.

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