Report No. 2010-24
February 2010
Complete Audit Report
Findings in the audit of the State Environmental Improvement and Energy Resources Authority
Fund Balance and Financing Fees
The State Environmental Improvement and Energy Resources Authority (SEIERA) has accumulated an unrestricted General Fund balance of $6.6 million with no specific plans for its use and has not considered modifying its fee structure. The SEIERA has not changed its fee structure since at least 1986.
Market Development Program
The SEIERA has not always submitted accurate reimbursement claims or provided reports of effectiveness related to the Market Development Program (MDP). The SEIERA did not reconcile actual costs to claimed costs, and as a result, submitted inaccurate reimbursement claim forms to the DNR for reimbursement of MDP costs. We reviewed the quarterly reimbursement claim forms submitted to the DNR during the year ended June 30, 2009, and noted claimed costs exceeded actual costs by about $11,250 during October through December 2008. The SEIERA does not adequately report to the Governor and legislature on the effectiveness of the MDP.
Expenditures and Contracts
The SEIERA does not have a formal procurement policy. We noted the SEIERA did not solicit competitive proposals prior to extending contracts for legal and financial services related to bond issuances and did not solicit proposals for administrative and technical services for the MDP. The SEIERA did not always receive adequate supporting documentation prior to paying invoices for legal services. The SEIERA did not require adequately detailed contracts and did not always receive adequate supporting documentation prior to payment of invoices for accounting services. In addition, accounting services were not always provided in a timely manner. The MDP contract management costs and the direct project costs for technical assistance services provided by the not for profit corporation were not adequately detailed. The SEIERA's policies do not provide for effective control of employee travel costs. The SEIERA's contracts with professional service providers do not limit individual travel expenses to usual and customary rates and the contracts do not require the provider to itemize travel expenses. Additionally, the contracts do not require the provider submit documentation detailing the travel expenses.
Bank Accounts and Investments
The SEIERA has not maximized interest earnings and has not maintained documentation to support its investment decisions. Maintaining excessive balances in relatively low yield checking and money market accounts deprives the SEIERA of additional interest earnings. The SEIERA should review and document its financial position and expected revenues and expenditures on a weekly or monthly basis and balances in excess of short-term needs should be invested.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
