Audit criticizes management of funds by Scott County prosecutor's office

BENTON, Mo. -- A newly released report on Scott County finances from the Missouri state auditor's office says there is little assurance money is being properly handled by the prosecuting attorney's office.

The report said the office does not maintain adequate records and that controls are poor. Monthly lists of liabilities, or debts, are not prepared and reconciled to the cash balance for the county's restitution account and bad check restitution money collected is not distributed in a timely manner. As a result, the report said, the account has unidentified funds. In May, the auditor's office requested a liabilities list from the prosecuting attorney's office, and the account had about $17,500 in unidentified funds.

The audit went on to say the prosecuting attorney's office cannot reconcile receipts to deposits because no complete record of receipts is maintained. Prenumbered receipts are not issued for all the money collected, partial payments are not recorded in the electronic accounting system, nor is a log of receipts maintained.

Another concern outlined in the audit is that the office does not follow up on old outstanding checks for the restitution account.

According to the auditor's report, similar conditions were noted in the county's last audit in October 2006.

The auditor's office recommended several record-keeping improvements to the prosecuting attorney's office, suggesting that a complete and accurate list of liabilities for the restitution account should be prepared and reconciled to the book balance monthly and that the office needs to ensure restitution payments are distributed on a timely basis. It also said an attempt should be made to investigate unidentified money. Any funds that remain unidentified following the investigation should be disbursed in accordance with state law.

The report also suggested receipt slips should be issued for all monies received and those slips should be reconciled with money deposited. It stated adequate supporting documentation for receipts and disbursements, such as copies of money orders and letters to victims, should be maintained as well.

The prosecuting attorney's office was told it should follow up on old outstanding checks, and if payees can be found, they should be issued new checks. For those who cannot be located, the outstanding money should be disbursed in accordance with state law.

While Scott County Prosecuting Attorney Paul Boyd did not return calls for comment, the recommendations were addressed in the response portion of the report. It said the recommendations were being implemented; however, due to software limitations the office was unable to electronically document partial payments made by a defendant. New software is being considered. The office also said it would be working with professionals to address the necessary improvements in its bookkeeping.

Allison Bruns, director of communications for the state auditor's office, said while the auditor's office can make recommendations, it cannot hold anyone accountable for implementing them.

"We do not have enforcement authority," she said. "We provide them a road map and work with governments and entities to try and correct issues, but we can't make them do anything."

The state auditor is required by state law to conduct audits once every four years in counties, like Scott, that do not have an auditor. The audit also covers areas of county operations, as well as elected county officials, as required by Missouri's constitution. The scope of the Scott County audit included, but was not necessarily limited to, the two years ending Dec. 31, 2009.

Other findings

• Scott County has imposed two separate sales taxes under state law, which allows for a rate of one-quarter, three-eighths or half percent. The law does not contain a provision for two sales taxes that exceed the maximum allowed. The audit recommended legal counsel review the various sales taxes imposed and determine which are valid and if further action should be taken. The written response in the audit said the county had legal counsel review the ballots on which the latest tax appeared.
• Until March 2010 the county collector did not prepare monthly lists of liabilities to reconcile with cash balances, resulting in unidentified money. The collector's office written response said attempts are being made to identify the money and monthly lists of liabilities are now being prepared.
• Employees of the collector's office share one password to the county's property tax system, and that password is not periodically changed. The collector's office responded saying it will look into changing the password monthly during the office's peak time, November to January.

cbartholomew@semissourian.com

243-8600

Pertinent Address:

131 S. Winchester St., Benton, MO