Report No. 2008-95
December 2008
Complete Audit Report
The following findings were included in our audit report on the City of St. Louis Office of the Comptroller.
The 1980's era financial computer system utilized by the Comptroller's Office does not provide the information necessary to efficiently operate the city. Of the eleven city offices contacted, eight maintain additional separate financial records because the city's system does not provide adequate information. Maintaining additional records increases the workload of the city offices and appears to be an unnecessary expense to the city. In addition, the financial computer system does not have controls in place to prevent splitting purchases to avoid the city's bidding policies which require bids for all items purchased over $500 and professional services greater than $5,000. Also, transfer and journal entry procedures need improvement.
The Comptroller's Office processes approximately $13.5 million through its payroll computer system each pay period. The 1970's era payroll computer system does not provide the information necessary to efficiently operate the city and is heavily reliant on manual processes. Manual processing increases the possibility of errors occurring and not being detected. Because the payroll computer system is a separate system from the city's financial computer system, the Comptroller's Office has to manually enter summarized payroll transactions into the financial system. Payroll transaction data is not readily available and the payroll computer system does not provide adequate information about incentive pay, sick or vacation leave paid upon termination, and back pay.
The Comptroller's Office does not have adequate procedures to verify payroll data and, as a result, does not have assurance transactions are processed accurately. The Comptroller's Office does not ensure the electronic payroll data agrees with the payroll data certified by other city offices that submit payroll data electronically and does not require city offices to certify the accuracy of the processed payroll data. In addition, time sheets are not prepared for some non-civil service employees.
The Comptroller's Office sometimes did not enter into contracts as required by state law. The Comptroller's Office did not have contracts for monies passed through to Tower Grove Park and Metro totaling approximately $696,000 and $17.8 million, respectively, in fiscal year 2007. In addition, the Comptroller's Office did not have a contract for $75,000 paid for teaching program services during fiscal year 2007.
The Comptroller's Office transmits approximately $5 million of non-federal monies to the City Treasurer each month. Numerous employees in the Comptroller's Office collect or receive checks and money orders. These monies are transmitted to other employees for additional processing prior to being recorded and transmitted to the Treasurer. To safeguard monies from theft, loss, or misuse, the number of employees who receive and handle monies should be limited to the extent possible. In addition, checks and money orders are not always recorded on either official prenumbered receipt slips or a log immediately upon receipt.
The Comptroller used a city-owned vehicle for commuting purposes and did not report the commuting mileage as additional compensation. Records and monitoring procedures for the Comptroller’s Office pool vehicles and assigned vehicles are not sufficient. The Comptroller's Office does not require vehicle usage logs to be maintained for the vehicles. Finally, some vehicles had low mileage which can often indicate vehicles are not used efficiently. Permanent vehicle assignments should be reviewed to determine if they are necessary and justified for business purposes.
Also included in the audit report are recommendations related to revenue maximization, capital asset controls and procedures, and federal travel advances.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
