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YELLOW SHEET Office of the State Auditor of Missouri |
December 2005
Report No. 2005-85
The following findings were noted as a result of an audit conducted by our office of the Missouri Technology Corporation.
The purposes of the Missouri Technology Corporation (MTC) are to contribute to the strengthening of the economy of the state through development of science and technology. Originally, the primary function of MTC was to act as an advisory board with administrative functions for the MTC provided by Department of Economic Development (DED) staff. In January 2005, the MTC hired a full-time executive director, Joe Driskill, the former director of DED.
The MTC maintains one bank account, established by the DED in 1995. The account did not have collateral security coverage for monies in excess of the Federal Deposit Insurance Corporation (FDIC) limit of $100,000, as required by state law. At June 30, 2005, the bank balance exceeded FDIC coverage by $197,692.
The MTC established the Research Alliance of Missouri (RAM) under a contract with DED and handles the administrative functions for RAM. RAM funds support 25 percent of the executive director's salary and office expenses.
The MTC issued a check from RAM funds in the amount $6,432 to the University of Missouri-St. Louis (UMSL) to reimburse costs related to a sponsorship of a nanotechnology conference held in St. Louis. The invoice from UMSL listed two line items: $5,289 for dinner, accommodations and parking for the conference; and $1,143 to UMSL for a meeting room, audio visual equipment, breakfast, break, lunch, and setup. UMSL submitted detailed invoices from the conference hotel and the UMSL charges. The hotel invoice included beverage charges for $630. We determined the beverage charges were for wines totaling $140, and an open bar serving alcoholic beverages totaling $490. The use of funds for entertainment expenses is expressly prohibited by both DED contractual restrictions, and MTC and RAM policy.
The MTC retained the services of a local CPA firm which submitted an engagement letter specifying the range of monthly, quarterly, and annual charges. The MTC requested additional procedures be performed beyond the scope of the original agreement. The CPA firm has been paid $15,956, $5,771, and $1,950 in fiscal years 2005, 2004, and 2003, respectively. The invoices lacked sufficient detail to determine if the billings were in accordance with the agreed upon rates and failed to include the number of hours billed for each task.
