YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

Report No. 2004-82

September 30, 2004

IMPORTANT:  The Missouri State Auditor is required by state law to conduct audits once every 4 years in counties, like Polk, that do not have a county auditor.  In addition to a financial and compliance audit of various county operating funds, the State Auditor's statutory audit covers additional areas of county operations, as well as the elected county officials, as required by Missouri's Constitution.

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

• Bids were not always solicited nor was bid documentation always retained by the county for various purchases.  While the county provided some explanations, documentation of the bids or sole source procurement was not maintained or recorded in the County Commission minutes.  Additionally, the county provided assistance to various political subdivisions and organizations within Polk County without written agreements or requiring supporting documentation of the use of the monies.   

• The county's annual published financial statement did not include the appropriate expenditure detail as required by Section 50.800, RSMo 2000 and the financial activity for some county funds was not included.  Most of these unreported funds were controlled by entities outside of the control of the County Commission. 

• The Thirtieth Judicial Circuit Juvenile Detention Center (JDC) has accumulated  a substantial unrestricted cash balance with no documented plans for its use.  The JDC cash balance at December 31, 2003 totaled more than $1 million and according to the JDC's 2004 budget, is expected to be more than $1.2 million by December 31, 2004.  While the Circuit Judge indicated these funds would be used for facility expansion and repairs, the number of juveniles housed by the JDC has been decreasing and the JDC's 2004 budget did not reflect an increase in the amount needed for building repairs.  Additionally, the agreement between the JDC and the five counties in the Thirtieth Circuit (Benton, Dallas, Hickory, Polk, and Webster) indicates that the JDC will operate on or near a break-even basis; however, the JDC has continued to bill the counties for costs associated with the facility.   Further, the JDC has not solicited bids for banking services, not entered into a written agreement with its depository banks, and not adequately secured all deposits.  Bids were not solicited for food purchases and the JDC does not have a policy to address meals provided to employees.

• The Senate Bill 40 Board provided funds approximating $57,000 and $38,000 in 2003 and 2002 to various organizations, but did not enter into written contracts with the entities or ensure monies distributed were expended on the item or services requested.  In addition, a complete and accurate budget was not prepared, and actual expenditures exceeded the amount budgeted in 2003 by $10,015.  Finally, the regular board minutes did not always document the specific reasons for closing the meeting and actions taken by the board in closed meetings. 

• The financial condition of the Emergency 911 Central Dispatch needs to be reviewed by the Board.  During December 2003 accounting records showed a negative $732 cash balance. Federal grant funds totaling $147,535 were used to cover the negative balance, while loans were obtained to purchase the equipment required under the grant.  In addition, the Dispatch Center's budget contained errors, and actual expenditures exceeded the amount budgeted in 2003 by $144,926.  Finally, board minutes did not document the specific reasons for closing the meeting and actions taken by the board in closed meetings.    

Also included in the audit are recommendations related to the preparation of the county's schedule of expenditures of federal awards, filing of Form 1099 Miscellaneous, cellular telephones, vending machine procedures, officals' salaries, general fixed assets, and changes to the tax books.  The audit also suggests improvements in the procedures of the Circuit Clerk, Prosecuting Attorney, Sheriff, Juvenile Division, and Health Center.

Complete Audit Report