10/13/2021
State
Auditor Nicole Galloway released today her follow up review of New Madrid
County, located in southeast Missouri. The review was the result of a
report issued in December 2020 of a regularly scheduled audit of the county
that resulted in a rating of "poor" - the lowest possible. The most
significant finding from that audit was that monthly reports and state payroll
tax withholdings totaling $382,047 were not received by the state for more than
five years, resulting in more than $50,000 in interest costs to the county.
The follow-up review determined the county has corrected
the payroll tax problem, improved procedures to help prevent it from happening
in the future and has begun implementation of other recommendations in the 2020
audit.
"New
Madrid County officials have begun the process of ensuring adequate checks and
oversight in their processes so that mistakes like this are less likely to
occur in the future," Auditor Galloway said. "I urge the county to
complete the implementation of all of our audit recommendations to give
taxpayers confidence in their government."
Auditors
found that lack of oversight over the County Clerk's payroll duties and records
allowed the payroll tax issue to occur and go undetected from 2013 until 2018.
The County Clerk indicated his office prepared payments for payroll tax
withholdings, but mailed them to an incorrect address. The County Treasurer did
not routinely follow up on outstanding checks and 31 outstanding checks
totaling $209,945 related to state payroll tax withholdings. By 2019, when the
payroll tax issue was resolved, the county had accrued $51,333 in interest
charges from the state Department of Revenue (DOR).
In their
follow up review, auditors found that the County Clerk is performing documented
reviews to ensure state payroll tax withholdings are remitted and monthly
reports are filed timely with the DOR. The County Treasurer has implemented
procedures to investigate and resolve outstanding checks, and the County Clerk
and County Commission are reviewing and signing the monthly bank
reconciliations and monthly settlements prepared by the County Treasurer.
The
review also determined that some steps have been taken towards implementing
recommendations relating to the offices of the Sheriff and the Prosecuting
Attorney. Of the 18 audit recommendations reviewed as part of this report, 12
have been implemented or partially implemented, another three are in progress,
and three remain not implemented.
A copy of
the audit can be found here.
