Report No. 2010-127
October 2010
Complete Audit Report

Findings in the audit of Lincoln County

Financial Condition
The financial condition of the General Revenue Fund and Law Enforcement Trust Fund is deteriorating and is not expected to improve significantly during the year ended December 31, 2010. Actual disbursements have exceeded both actual receipts and budgeted disbursements in the General Revenue Fund during the last 3 years. In addition, budgeted disbursements are expected to exceed budgeted receipts in 2010. Actual disbursements of the Law Enforcement Trust Fund have exceeded actual receipts (excluding transfers from the General Revenue Fund) the last 3 years.

Budgets
The county does not adequately monitor budgets to prevent overspending of funds. As a result, actual disbursements exceeded budgeted amounts for several funds. While budget to actual data is provided to some county officials and commissioners, the county's procedures and reports have not resulted in effective monitoring of various budgets.

County Collector
The County Collector did not complete and file annual settlements in a timely manner, which has resulted in non-compliance with state law. The method of payment is not recorded on the monthly checkbook, which lists each partial payment received. As a result, the composition of the checkbook cannot be reconciled to deposits.

Sheriff
Although Sheriff's office personnel post checks and deposits that clear the bank to the electronic system, complete bank reconciliations for the Inmate and Commissary accounts are not performed. As a result, there is no assurance all transactions have been recorded properly and book balances are accurate. Sheriff's office personnel do not generate a list of liabilities (inmate balances) periodically and, as a result, they cannot ensure monies in the account are adequate to cover amounts due to inmates. The Sheriff's office retains commissions on commissary sales in the Commissary Account and uses these monies to purchase items for inmates who cannot afford them and for the jail. State law requires these monies to be paid to the county treasury. The Sheriff's office currently collects a $10 bond processing fee; however, state law does not include provisions to collect such a fee. The Sheriff's office does not bill and monitor contracted costs for school resource officers provided to local schools.

County Vehicles
The personal commuting use of county trucks by the Road and Bridge Department Supervisor and Assistant Supervisor are not reported to the IRS as required. The county did not fully calculate and reimburse fuel costs of the Sheriff's office to the Road and Bridge Fund for fuel used in 2009 and 2008. As a result, restricted revenues from the Special Road and Bridge Fund were used to fund other county operations. In addition, fuel costs for the Sheriff's office were understated and Road and Bridge Department fuel costs were overstated on the county's budget.

Prosecuting Attorney
The Prosecuting Attorney's clerk collects monies, records transactions, and reconciles bank accounts. Although the Prosecuting Attorney indicated he reviews the bank reconciliation, his review is not documented. A receipt log is not maintained nor are prenumbered receipt slips issued for some payments received. Also, the numerical sequence of receipt slips is not accounted for properly. As a result, the composition of receipts cannot be reconciled to deposits and there is no assurance all monies are accounted for and deposited properly.

Closed Meetings
The county is not in compliance with the Sunshine Law. The closed minutes were not sufficient to demonstrate issues discussed were allowable under the Sunshine Law. In addition, the minutes for open meetings do not always document the specific reasons for closing the meeting.

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