Report No. 2009-20
February 2009
Complete Audit Report

Our office conducted an audit of the Prosecuting Attorney of Douglas County, Missouri.

Cash receipts totaling at least $4,459 received by the Douglas County Prosecuting Attorney's office between October 1, 2007 and February 25, 2008, were not deposited and are unaccounted for. Poor accounting controls allowed these missing funds to go undetected.

In March 2008, the State Auditor's office was contacted by the Douglas County Prosecuting Attorney's office requesting assistance with balancing and maintaining accounting records. The State Auditor's office was informed that the Prosecuting Attorney's Legal Assistant, who was responsible for maintaining the accounting records, was terminated, and accounting records had not been properly balanced and maintained. Our review of the accounting records identified discrepancies and the need for an audit which was subsequently requested by the Prosecuting Attorney.

Poor receipting and depositing procedures allowed the missing cash receipts to occur and not be detected. For example, unrecorded checks and money orders appear to have been substituted into deposits and recorded cash receipts were not deposited. Additionally, some checks and money orders were not recorded for up to two months after being received and deposited. This delay in recording receipts also helped to conceal the missing cash. Further, the method of payment (cash, check, or money order) is not always indicated on receipt slips, receipts are not deposited timely, and the numerical sequence of receipt slips is not accounted for.

Other weaknesses were noted including the failure to adequately segregate accounting duties and perform bank reconciliations. All collection, distribution, and record-keeping duties are performed by the Prosecuting Attorney's Legal Assistant, and there is no documentation that the work performed or the records maintained are reviewed by a supervisor or the Prosecuting Attorney. Monthly bank reconciliations are not performed, and listings of open items are not prepared and reconciled to the account balance. As of February 2008, bank reconciliations had not been performed for almost a year and restitution and fees had not been disbursed for several months.

Also in the report are recommendations related to restitution distributed to victims, fees distributed to the County Treasurer, and information posted to case files.

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