Report No. 2008-14
March 2008
Complete Audit Report

Progress Has Been Made, but Additional Reviews Needed to Ensure Accurate Vendor File and Payment Reporting
This audit reviewed the SAM II vendor file and related processes. Auditors found Office of Administration (OA) officials have been doing an effective job overall of managing vendor records and Form 1099 reporting requirements. However, additional opportunities exist to enhance management of vendor records and reporting requirements.

Additional work needed to identify duplicate and unnecessary SAM II vendor records
We found progress has been made eliminating duplicate and unnecessary vendor records. The number of vendor records has decreased 54 percent from 2003 to 2008. However, potential duplicate vendor records still exist in the vendor file, increasing the risk of payments being made to incorrect vendors. (See page 7)

Form 1099 reportable expenditure types should be periodically reviewed
OA Accounting officials did not create Form 1099 returns for all calendar year 2006 reportable payments. An Accounting official said the criteria for Form 1099 reportable expenditure types has not been reviewed since July 2005. (See page 8)

Inactivity time frames for deleting vendors should be reviewed
Repeat work has been created for state employees, including OA Accounting staff, when vendor records need to be reissued because the records have been purged from SAM II. State employees must obtain a new vendor input form, verify the vendor's TIN, and process the vendor record in SAM II when a deleted vendor needs to be added back to SAM II. A review of vendor records deleted during the period January through August 2007 and then reissued within 90 days of the record's deletion date indicated 74 percent would not have been deleted if the purge process had been set at 24 months of inactivity instead of the current time frame of 14 months. (See page 8)

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