Report No. 2009-40
May 2009
Complete Audit Report

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

The County Collector's annual settlements were not accurate or complete and were not prepared and filed in a timely manner. Some delinquent property tax receipts were not deposited and have not been accounted for. Receipts are not always deposited intact or in a timely manner, and the method of payment is not accurately recorded on the property tax system, and an independent review of the composition of receipts to deposits is not performed. The numerical sequence of receipt and batch numbers assigned by the computerized system is not accounted for. Manual receipt slips are not always issued for payments received that are not recorded in the computerized system. The County Collector does not always prepare monthly bank reconciliations or open items lists and an unidentified balance exists in the account. The County Collector's partial payment ledger was not accurate, and the County Collector did not distribute taxes on a timely basis. As a result of the significant control weaknesses identified in this office, there is no assurance all property tax receipts have been properly deposited and accounted for.

Neither the County Commission, nor the County Clerk adequately reviews the activities of the County Collector. Controls over property tax additions and abatements are not adequate, and the County Clerk did not file the back tax aggregate abstracts for the 2007 or 2006 tax year in a timely manner.

The former Sheriff used $3,607 of accountable fees to pay for prisoner transports, office expenses, and drug buys. Supporting documentation was not retained for $1,957 of these disbursements, and the former Sheriff did not always turn over fees to the County Treasurer on a monthly basis. Accounting duties are not adequately segregated, dual signatures are not required on checks, and two checks issued to a local grocery store and subsequently cashed did not appear to be signed by the bookkeeper. Receipts are not always deposited intact or on a timely basis, the method of payment is not always indicated on receipt slips, and the composition of receipt slips issued is not reconciled to the composition of deposits. Monthly lists of open items are not prepared, and consequently, liabilities are not reconciled with cash balances. The jail log maintained by the Sheriff's office does not always include the arrest or release dates of inmates. A control log of evidence and seized property is not maintained nor is a physical inventory periodically conducted.

The county did not always solicit bids nor was bid documentation always retained for various purchases, and adequate supporting documentation was not obtained or retained for some disbursements. Several concerns were noted regarding the use of credit cards in the Sheriff's office. Individual credit card slips were not reconciled to the credit card statement each month, and adequate supporting documentation was not maintained for $2,823 of the $3,934 credit card purchases we reviewed. In addition, many of the purchases reviewed did not appear to be prudent uses of public funds. The county has not developed a formal written policy regarding cellular phone use or guidelines to determine whether a cellular phone is needed or of benefit to the county. The county did not always enter into formal written agreements defining services to be provided and benefits to be received and did not prepare IRS Forms 1099 Miscellaneous for payments made to the Prosecuting Attorney's private law office.

The County Clerk maintains three bank accounts to process grant monies received for the Justice Center Grant Fund, Siren Warning Grant Fund, and Little Black Fire District Grant Fund. There is no statutory authority that allows the County Clerk to hold these accounts outside the county treasury.

Also included in the audit report are findings related to county budgets; personnel policies; property records and procedures; the Treasurer's salary; the Circuit Clerk, Associate Circuit Court, and Prosecuting Attorney controls and procedures; the Senior Citizens Service Board; and the Senate Bill 40 Board.

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