Report No. 2008-32
May 2008
Complete Audit Report

The following report is our audit of the Office of State Treasurer.

During the period January 23 through April 15, 2008, the Deputy State Treasurer indicated that he performed work on the State Treasurer’s campaign for Governor and took vacation leave from his state job when working on the campaign. During the period January 23 through March 31, 2008, the Deputy did not submit any official signed or completed time sheets as required by State Treasurer's Office (STO) policies. However, in April 2008, completed time sheets were provided by the Deputy for the abovementioned period.

Using the completed time sheets, on April 17, 2008, the STO recorded 173 hours of vacation leave taken and 16 hours of sick leave taken on the state’s payroll system for the Deputy State Treasurer during the period of January 23 through March 31, 2008. This leave was recorded by processing numerous prior period adjustments. On this same date, 52 hours of vacation leave taken and 32 hours of sick leave taken was recorded for the period April 1 through April 15, 2008. When questioned, the Deputy State Treasurer indicated that his leave had not been reported timely but he stated his leave was reported accurately. Had all leave taken by the Deputy State Treasurer been reported timely and accurately, no prior period adjustments would have been necessary.

State funds totaling $277,854 were not covered by collateral securities as of June 30, 2007. The STO has time deposits and collection accounts in banks throughout the state. Prior to the deposit of monies into the banks, the banks must have adequate securities pledged to cover the deposits, which are recorded in the STO collateral security system. Internal audits of the collateral securities system by the STO have not ensured that collateral securities are pledged in accordance with STO policies.

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