Report No. 2009-03
January 2009
Complete Audit Report

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

The General Revenue Fund's financial condition is declining. This financial condition would be worse if the general revenue property tax levy had been properly rolled back during the four years ended December 31, 2007. In addition, the county is proceeding with the construction of a new jail facility with a lease purchase arrangement which may further strain the General Revenue Fund's financial condition.

Personnel and payroll records and procedures are not adequate. Not all county officials follow the county policies for time and leave accumulation and the Circuit Clerk/Ex Officio Recorder did not require employees to enter time worked and/or leave taken on timesheets. Officials do not always review and approve timesheets; instead, a facsimile stamp of the official signature is applied by employees, reducing internal controls over payroll. Leave records are not provided to the County Clerk by the Road and Bridge Department employees. In addition, some individuals who appear to be county employees were paid as contractors circumventing Internal Revenue Service (IRS) rules and regulations.

Bids were not always solicited or advertised by the county, nor was bid documentation always retained for some purchases. Adequate supporting documentation was not always obtained and reviewed for some disbursements. Disbursements for some funds are approved only by the Treasurer and an elected official which is not the normal county disbursement process. Further, IRS rules and regulations were not followed for some mileage reimbursements. Finally, some county contracts are not in writing as required.

Problems with the county's budgetary practices have been noted in the past several audit reports and budgetary problems continue to exist. The Special Road and Bridge Fund budget was unrealistic and did not adequately project the anticipated financial activity and ending cash balance. Actual disbursements exceeded budgeted amounts for several funds. Although budget amendments were prepared for some funds, some amendments were prepared after actual disbursements had exceeded the original budgeted amounts.

Formal policies and procedures over both the sale of culverts and providing grading services to the public have not been adopted. In addition, the county does not maintain a record of all culvert sales or grading services provided. Further, while the county maintains mileage, vehicle, and equipment logs, we noted one instance where such records were not maintained when a culvert was installed on a private road. As a result, the full cost of providing the services on the private road could not be determined.

The County Commission has not established a written policy related to the handling and accounting for capital assets. Procedures and records to account for county property are not adequate.

There is no statutory authority to maintain the Special Law Enforcement Fund for the deposit of assessments made in consideration for reduced charges filed on traffic tickets. Other concerns in the Prosecuting Attorney's office include accounting duties are not adequately segregated, bad checks fees are not transmitted to the County Treasurer on a timely basis, and money orders received are not recorded and restrictively endorsed immediately upon receipt. Also, receipt slips are not issued for court ordered restitution payments, no sequential summary record of restitution receipts and disbursements is maintained, and a log or other record is not maintained to account for all bad check complaints filed and their ultimate disposition.

A shortage of $345 was not detected in the Recorder of Deeds’ office on a timely basis due to various weaknesses including bank reconciliations were not prepared since September 2007, the method of payment received was not always accurately recorded in the accounting records, and the composition of the receipts was not reconciled to the composition of deposits. Receipts are not deposited intact on a timely basis, and checks and money orders are not restrictively endorsed immediately upon receipt. Receipts are not always entered into the electronic accounting system and some monthly disbursements were not disbursed on a timely basis. Copy monies received and monies received for compact discs are not recorded upon receipt in a log and the method of payment for these fees is not recorded. In addition, written contracts do not exist to support agreements between the Recorder of Deeds and local abstract companies and no records are maintained to account for overpayments that are retained and not refunded.

The Sheriff's procedures relating to processing of monies and accounting for commissary inventories are in need of improvement. Receipts for civil process fees are not recorded or deposited on a timely basis. The method of payment is not consistently indicated on receipt slips, and checks are not restrictively endorsed immediately upon receipt. Personal checks were cashed out of cash receipts, causing receipts to not be deposited intact. Monthly listings of liabilities are not prepared for the Sheriff's accounts and reconciled to the cash balances. Profits from the Sheriff's Jail Commissary Account are used to make purchases outside the control of the normal county disbursement process. Bond forms are not prenumbered, and the recipients signature on the receipt slip is not always obtained to acknowledge receipt when a cash bond is refunded the same day. In addition, the Sheriff did not maintain a running inventory of items purchased from vendors, items sold to inmates, and inventory balances.

Also, included in the report are recommendations related to the Public Administrator’s salary, the County Clerk’s accounting controls and procedures, and the Senate Bill 40 Board.

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