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YELLOW SHEET Office of the State Auditor of Missouri |
Report No.
May 6, 2004
Missouri is Missing Out on Some Federal Funds Which Require No State Match
This audit reviewed how well various state agencies identified and applied for available federal funding. State agencies received $7.9 billion in federal funds in fiscal year 2003 either for state programs or to pass through to school districts and other local entities. Auditors identified 28 grants states other than Missouri had received and followed up with Missouri agencies to see if they applied for them. The total funding awarded for each grant ranged from $1.5 million to more than $35 million. The following highlights our findings.
State agencies could have received federal grants worth up to $3.5 million
Auditors identified 5 grant programs worth up to $3.5 million in funding that state agencies did not receive. Agencies lost the opportunity to receive these funds because they were not aware of the grants. (See page 3)
Methods for identifying grant awards need improvement
Written procedures for identifying and maximizing federal funding opportunities are not always provided and are inconsistent throughout state government. In addition, many state agencies have assigned the task of identifying grant opportunities as another duty for employees who have many other job responsibilities. (See page 4)
Statewide revenue maximization contracts are under utilized
In 2002, the Office of Administration contracted with two companies to help agencies identify federal revenue enhancement opportunities. However, only 4 agencies have used the contracts. Officials from 18 of 43 state entities indicated they were not aware of the contracts. As of January 2004, five revenue maximization projects (involving four agencies) were in progress under one of the contracts. At that time no projects had been completed. (See page 5)
Budget shortfalls lead to loss of extra federal money
Some agencies have lost at least $4.7 million in federal grant funding for fiscal years 2004 and 2005 because the state match was not available due to budget cuts. For example, the Department of Natural Resources lost state matching funds from its budget for a coal mining grant, resulting in a loss of $414,188 in federal funds. This cut meant Missouri no longer operated a full coal program, which led federal officials to stop funding Missouri�s abandoned mine program and an additional loss of $1.7 million in federal funds. (See page 6)
