Report No. 2008-53
August 2008
Complete Audit Report

The following findings were included in our audit report on Benton County.

There are numerous control weaknesses in the Sheriff’s accounting controls and procedures including inadequate segregation of duties, untimely preparation of bank reconciliations, lack of monthly liabilities listings, and inaccurate and incomplete receipting, posting, depositing, and distribution procedures. In addition, procedures have not been established to follow-up on old outstanding checks and bonds, and monitoring procedures for accrued civil fees are not adequate. Finally, an old bank account maintained by the prior Sheriff has not had any activity since 2001.

The listing of open bonds maintained by the Sheriff’s office was inaccurate and incomplete. After discussions with the bookkeeper regarding various liabilities, an updated open item listing was prepared as of February 29, 2008. A comparison of the listing to the reconciled cash balance revealed that liabilities exceeded the cash balance by at least $2,797. However, the bookkeeper is continuing to investigate open bonds and this amount could fluctuate. In addition, cash of $500 received in December 2007 was not on hand and could not be traced to a deposit. This may have contributed to the previously noted shortage.

Numerous weaknesses were also noted in the County Collector’s accounting controls and procedures. The County Collector did not prepare bank reconciliations for two on-line bank accounts and did not prepare monthly listings of liabilities for any accounts. Upon our request, the County Collector prepared a listing of liabilities. She was able to reconcile liabilities to the cash balance of her main general property tax account; however, a total of approximately $6,700 was unidentified for various other accounts. In addition, an old general property tax bank account had a bank balance of approximately $76,000 as of February 29, 2008, most of which was carried over from the prior County Collector. Much of the balance appears to be mailing commissions and accumulated interest income that had not been distributed by the prior County Collector.

The County Collector does not have current written agreements with the cities for which she performs property tax collection services or depository agreements for all banks in which funds are deposited. In addition, she maintains an excessive number of bank accounts. The County Clerk’s account book with the County Collector’s is not complete. The current County Collector’s term of office began effective March 1, 2007. Many of these conditions were similarly noted in our prior audit report pertaining to the prior County Collector.

The general revenue property tax levy was not sufficiently reduced, resulting in excess property tax collections of approximately $70,800 at December 31, 2007. The excess has accumulated over several years.

The 2007 and 2006 Special Road and Bridge Fund budgets did not adequately project the anticipated financial condition of the fund. In addition, a formal maintenance plan has not been prepared to document expected work on the county’s roads and bridges.

Written minutes are not prepared for County Commission closed meetings. In addition, the County Commission has not developed a written policy for the use of cellular telephones or a formal plan for a vacant county owned building.

Bids were not always solicited nor documentation retained of bids solicited for purchases made by various county officials. In addition, the county loaned $10,000 to a private organization for the purpose of providing start up costs to establish a Veterans Memorial Walkway on the courthouse grounds. The Missouri Constitution prohibits the loaning of public funds to private corporations. Also, supporting documentation was not sufficient for some disbursements.

The County Commission does not have a written policy regarding the use of county owned vehicles. In addition, the Sheriff Department’s fuel billing statements are not adequately reconciled to vehicle expense logs and fuel receipts are not required to be submitted for fuel purchases. Also, vehicle mileage logs are not maintained for the two E-911 vehicles.

The County Treasurer does not prepare monthly bank reconciliations for the primary bank account. In addition, the County Treasurer did not prepare the June 30, 2007, semi-annual settlement and the 2007 annual settlement was not accurate. Also, the County Treasurer currently maintains three bank accounts representing General Revenue Fund monies that have had little or no activity since 2002 except interest earnings.

Also included in the report are recommendations related to the Prosecuting Attorney’s accrued cost procedures, and the County Clerk’s, Assessor’s, and E-911 controls and procedures.

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