Report No. 2008-65
October 2008
Complete Audit Report

Our office conducted an audit of the Mid-East Area Agency on Aging.

The Mid-East Area Agency on Aging (MEAAA) has experienced a high rate of employee turnover in recent years, with employee turnover rates ranging from 51 to 69 percent from 2004 to 2006. The high turnover rate is costly and time-consuming due to the continuous hiring and training new employees. The agency has taken some steps in an attempt to address this problem; however, the employee turnover rate remains high, at about 50 percent for a recent 12-month period ending March 2008.

Complaints concerning MEAAA management and employee morale issues were reported publicly and to the State Auditor's Office both prior to and during the audit. To review these complaints/concerns and to better understand the reasons for the high turnover, we sent a survey to 63 former MEAAA employees, with 37 of the survey recipients ultimately responding. Many of the surveys cited multiple reasons for leaving employment, including, but not limited to, higher pay, better job opportunity, and retirement. However, the most commonly cited reason was conflict with supervisor(s)/management, with 46 percent of those responding noting this as one of the primary reasons for leaving agency employment. In addition, over half of the former employees responded no to the questions of whether MEAAA management/supervisors treated employees well and with respect, gave fair and equal treatment, and welcomed suggestions and feedback.

The survey results indicate there are employee morale problems at the agency, some involving the relationship between employees and management. The audit concluded that further efforts are needed to reduce the turnover rate and improve employee/management relations and recommended the MEAAA board conduct or authorize an in-depth independent review of agency management/supervisors to gain a better understanding of the problems that exist and take corrective action.

A continuing point of contention has been the MEAAA's decision to provide only limited financial support to the new Tri-County Senior Center (Tri-County) located in the city of Pacific. This is a locally-funded and operated senior center that opened in 2007. The decision was made (by local parties in that community) to proceed with the construction of this senior center even though MEAAA had made no commitment to provide financial assistance to the new center after it was built. While the MEAAA has agreed to provide a limited number of catered meals per day to the new senior center, various officials/residents in the Pacific area have expressed the desire that Tri-County become an MEAAA-operated senior center with an on-site cooking operation and for the MEAAA to cover the costs of the senior center's operations.

The MEAAA has cited current funding levels within the four-county region, as well as limited funding resources, as reasons for not making Tri-County an MEAAA-operated senior center. An analysis prepared by the MEAAA noted that senior centers in Franklin County (where the city of Pacific is primarily located) already receive approximately 19 percent of MEAAA's funding in the region, even though that county only has about 6 percent of the senior population. It is the belief of MEAAA officials that any funding increases should be directed primarily to areas that are currently underserved.

It appears the MEAAA is under no obligation to take over the operations of this senior center and absorb the related operating costs. The agency's decision to provide only limited financial support to Tri-County appears to have been a reasonable management decision made within the agency's discretion, and the audit made no recommendation related to this matter. However, the MEAAA was encouraged to continue working with Tri-County in pursuing other funding to meet the senior center's operating needs.

Concerns/allegations have been reported publicly regarding the possible misreporting of meals provided by the agency to the Missouri Department of Health and Senior Services (DHSS), the state agency that provides most of the MEAAA's funding. In investigating this matter, it was determined the MEAAA misreported a minimal number of meals to the DHSS in years prior to 2007; however, these reporting errors have been resolved. In addition, any excess funding the MEAAA received from the DHSS related to this situation appears to have been negligible.

The MEAAA competitively procures its major commodity and service contracts and generally makes an effort to solicit competitive bids for other goods and services; however, the agency has not established a comprehensive procurement policy which provides specific guidelines regarding the appropriate/necessary purchasing procedures and documentation to be maintained. As a result, various expenditures were noted in which competitive bids or proposals were not solicited and/or bidding documentation was not retained.

Dispositions of capital assets are not always removed from the asset listing in a timely manner, and formal physical inventory procedures regarding the agency's capital assets have not been established. In addition, a recreational vehicle purchased by the agency in 1996 (at a cost of $79,600), and subsequently modified to serve as a mobile unit for health screenings and medical exams, has not been used for approximately three years.

Background checks have not been conducted for volunteers who assist in agency programs. Considering the close personal interaction that may occur between volunteers and the senior citizens, conducting background checks on all volunteers may be necessary and would help ensure the safety and well-being of the senior citizens who participate in the agency's programs.

Also included in the audit report are recommendations related to controls over receipts and meeting minutes and record requests.

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