Report No. 2010-80
July 2010
Complete Audit Report

Findings in the audit of Osage County

Financial Condition
As noted in the prior audit report, the General Revenue Fund is in poor financial condition. The cash balance has declined in part due to decreasing transfers of sales tax receipts from the 911 Fund and increasing Sheriff's department and jail operational costs. A long-term plan regarding various available funding sources has not been prepared. The county's 2010 General Revenue Fund budget projects a $39,911 cash balance at December 31, 2010, a significant decline from previous years.

Disbursements
The County Commission pays invoices for some purchases without adequate supporting documentation or proper review and approval by county officials and department heads. The county has not established effective monitoring procedures regarding county vehicle and equipment use and fuel costs. Records of fuel use are not maintained for most county vehicles and equipment and fuel use is not reconciled to fuel purchases. In addition, the county needs to implement better controls over the credit card assigned to the 911/Emergency Management Director. The lack of oversight of the Director's credit card allowed some credit card purchases to be made without adequate supervisory approval and supporting documentation.

Payroll Controls and Procedures
As noted in our seven prior reports, timesheets are not prepared by Sheriff's department personnel, except for the bookkeeper. Timesheets submitted for some employees are not signed by the employees. Centralized records of leave balances and leave used and earned are not maintained, and some employee leave balances exceeded the maximum allowed by county policy. In addition, the County Commission's approval of the 911/Emergency Management pay plan was not documented and the pay plan provides significant annual raises and longevity payments without regard to the county's financial condition.

County Financial Records and Procedures
The County Clerk and County Treasurer do not adequately reconcile their accounting records. As a result, errors were noted in the cash balances for some funds presented in the county budget documents.

Capital Assets
As noted in previous audits, procedures and records to account for county property are not adequate. The County Clerk has no procedures to identify property purchases and dispositions throughout the year and inventory reports from county officials had not been updated since 1997.

Sheriff's Deposits
As noted in previous audits, receipts are not deposited on a timely basis. Although monies are normally collected each business day, deposits are only made one to four times a month.

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