YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

September 29, 2003

Report No. 2003-97

IMPORTANT:  The Missouri State Auditor is required by Missouri law to conduct audits only once every four years in counties, like Sullivan, which do not have a county auditor.  However, to assist such counties in meeting federal audit requirements, the State Auditor will also provide a financial and compliance audit of various county operating funds every two years.  This voluntary service to Missouri counties can only be provided when state auditing resources are available and it does not interfere with the State Auditor's constitutional responsibility of auditing state government. 

Once every four years, the State Auditor's statutory audit will cover additional areas of county operations, as well as the elected county officials, as required by Missouri's Constitution.

This audit of Sullivan County included additional areas of county operations, as well as the elected county officials.  The following concerns were noted as part of the audit: 

• Inadequate board oversight and a lack of controls and procedures surrounding the 911 Board's accounting system have allowed a misappropriation of funds to go undetected. Nineteen checks totaling $3,448 for interest earned on the board's certificate of deposit were not deposited into the board's bank account and were apparently cashed by the former 911 coordinator.  Additional receipts were also not properly recorded and deposited.

Payments to various vendors were not made on a timely basis.  In addition, the 911 Board's procedures for approving disbursements did not require documentation (invoices) be provided by the 911 coordinator to support the amounts being paid.  Also, inventory records were not maintained to account for maps purchased, sold, or given away, and the board's financial statements were not published. 

• The county's General Revenue Fund is in poor financial condition.  The cash balance of the General Revenue Fund decreased from $262,881 on December 31, 1997 to $53,677 at December 31, 2002.  The county's 2003 budget reflected a projected cash balance of only $637 at December 31, 2003.  The County Commission needs to closely monitor revenues and expenditures and take steps  to increase the balance of the General Revenue Fund. 
   

• During the years ended December 31, 2002 and 2001, Sullivan County was designated as the recipient for a Community Development Block Grant which was passed through to the Sullivan County Public Water Supply District #1.  The county did not properly monitor this grant.
   
• Adequate supporting documentation was not required or retained to support some county expenditures, such as CART rock reimbursements, and credit card purchases.  Additionally, although the county does not have a written agreement with the Prosecuting Attorney, the county reimburses 50 percent of the Prosecuting Attorney's expenses for rent and utilities each year as well as his secretary's salary for four of the five day work week. 
   
• The county's procedures are not adequate to ensure fixed asset purchases are added to the property records.  In addition, some county offices did not conduct annual physical inventories and mileage logs are not maintained for county-owned vehicles used by the sheriff's department.

Also included in the audit are recommendations to the County Commission related to personnel policies and procedures, and closed meeting minutes.  In addition, a recommendation was made to the Health Center to publish its financial statements. 

Complete Audit Report