Report No. 2009-61
June 2009
Complete Audit Report

The following findings were included in our audit report on the City of St. Louis, Department of Human Services.

The Department of Human Services (DHS) is responsible for administering over $15 million annually in various federal and state grants related to aging, homeless, utility assistance, jail diversion, and veterans programs. DHS procedures for awarding and monitoring funds for some of the grants need improvement. The DHS does not routinely advertise for proposals for subgrantees of the Homeless Veterans Reintegration Project, Utility Assistance Program, Federal and Missouri Emergency Shelter grants, or Homeless Challenge Program. The DHS does not sufficiently document reasons for the amount of funding awarded to some subgrantees for the St. Louis Area Agency on Aging (SLAAA). The DHS did not conduct annual fiscal monitoring reviews required by DHS policy for some subgrantees, and as a result, it appears the DHS did not detect misspent grant funds of $23,134 on a timely basis. The DHS did not perform adequate follow up or take disciplinary action for serious deficiencies noted with two SLAAA subgrantees.

The DHS needs to improve procedures to ensure expenditures of grant funds meet the requirements for allowable costs, and to ensure approval of expenditures is adequately documented in accordance with city and department policy. Some unallowable costs were paid from two grants, including unbudgeted travel costs, utility bills for properties not included in the grant agreements, cellular phone bills, and collect calls by clients. In addition, proper approval of some travel and other expenditures was not always documented in accordance with city and DHS purchasing procedures.

The SLAAA did not retain some records in accordance with its program services contract with the Missouri Department of Health and Senior Services. The SLAAA does not currently have an advisory council as required by the Older American's Act and Missouri Code of State Regulations.

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