Report No. 2011-42
August 2011
Complete Report
Findings in the audit of Grundy County
Prosecuting Attorney Procedures
Accounting duties are not adequately segregated. One legal assistant performs all duties of receiving, recording, and transmitting monies for bad checks and another legal assistant performs all duties for restitution without supervisory review. Bad check restitution and fees are not transmitted timely. Many money orders on hand during the February 8, 2011, cash count were not restrictively endorsed or did not indicate a payee. A monthly list of liabilities is not prepared and reconciled to the cash balance for the restitution account, and restitution monies are not distributed timely, which deprives victims of the use of their monies. Our two prior audit reports noted conditions similar to those discussed above. Also, the Prosecuting Attorney's office does not timely reconcile bank accounts or properly document outstanding checks. Write-off adjustments are made without supervisory review and are not adequately tracked and documented.
Sheriff Procedures
Accounting duties are not adequately segregated, and sufficient supervisory reviews are not conducted to safeguard assets. A monthly list of liabilities is not prepared and reconciled to the cash balance for the inmate account. When we asked for a list of liabilities for the inmate account, we discovered the liabilities list was $2,463 less than the inmate account balance as of March 8, 2011. This amount is thought to be profits made from selling telephone cards to the inmates, but a complete and accurate list of liabilities should be maintained, and any telephone card profits should be turned over to the County Treasurer in accordance with state law. The segregation of duties issue and turning over monies to the county treasury were noted in our two prior reports.
Ambulance Procedures
Official pre-numbered receipts slips are not issued for all monies received, monies received are not entered into the accounting system in a timely manner, and receipts are not transmitted to the County Treasurer in a timely manner, increasing the risk of loss, theft or misuse. As noted in our prior audit, no written policies on billing, collection and write-off of accounts receivables exist, and invoices are not prepared in a timely manner. As of December 31, 2010, the Ambulance Fund was owed $371,700, and of this amount $279,100 of which was delinquent by more than 29 days.
Fuel Card Procedures
The County Commission does not require the Ambulance and Sheriff departments to provide supporting receipts before it pays the monthly fuel card statements. The County Commission should require adequate documentation and a thorough review and approval before using public funds to pay the fuel card statements.
Capital Assets
The County needs to improve its county property procedures and records. The County should develop procedures to identify capital asset purchases and dispositions, ensure property records contain all necessary information, and require an annual inventory. Our two prior audits noted a similar condition.
Computer Controls
Unique user identifications are not required to log on to the County Clerk's office computers, employees share passwords, and passwords do not have to be changed periodically, making unauthorized access and/or changes to the system more likely. Backup data is not kept in a secure off-site location, which impairs the County's ability to recover data in the event of a computer failure.
Additional Comments
Because counties are managed by several separately-elected individuals, an audit finding made with respect to one office does not necessarily apply to the operations in another office. The overall rating assigned to the county is intended to reflect the performance of the county as a whole. It does not indicate the performance of any one elected official or county office.
In the areas audited, the overall performance of this entity was Fair.*
American Recovery and Reinvestment Act 2009 (Federal Stimulus)
The Senate Bill 40 Board received $21,486 under Title V, Section 5001 of the Recovery Act for Medicaid expenditures reported between October 1, 2008 and December 31, 2010.
*The rating(s) cover only audited areas and do not reflect an opinion on the overall operation of the entity. Within that context, the rating scale indicates the following:
Excellent:
The audit results indicate this entity is very well managed. The report contains no findings. In addition, if applicable, prior recommendations have been implemented.
Good:
The audit results indicate this entity is well managed. The report contains few findings, and the entity has indicated most or all recommendations have already been, or will be, implemented. In addition, if applicable, many of the prior recommendations have been implemented.
Fair:
The audit results indicate this entity needs to improve operations in several areas. The report contains several findings, or one or more findings that require management's immediate attention, and/or the entity has indicated several recommendations will not be implemented. In addition, if applicable, several prior recommendations have not been implemented.
Poor:
The audit results indicate this entity needs to significantly improve operations. The report contains numerous findings that require management's immediate attention, and/or the entity has indicated most recommendations will not be implemented. In addition, if applicable, most prior recommendations have not been implemented.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
