BOLLINGER COUNTY AUDIT FINDS MONEY CONCERN

MARBLE HILL -- A cash shortage of at least $10,398 occurred in the fee account of the 32nd Judicial Circuit's Division 5, and $824 is still missing, State Auditor Margaret Kelly said Thursday.

The shortage could have been detected had proper controls and adequate oversight been in place for the Bollinger County associate Circuit Court, the auditor said.

Kelly said some cash receipts for criminal cases, primarily traffic fines and court costs, had not been deposited into the official bank account. Recorded receipts of $10,398 were not included in any deposit between Jan. 1, 1990, and March 31, 1993. Between April 1, 1993, and July 31, 1993, $9,574 more than recorded receipts was deposited.

The auditor said that on June 7, the same day her office began its regular audit of Bollinger County, $6,950 in cash was deposited. Kelly said the large deposit was notable because throughout the audit period only small amounts of cash had been deposited.

"Numerous control weaknesses, including a lack of segregation of duties and little or no independent review, left ample opportunity for irregularities to occur," said Kelly. "The taxpayers of the 32nd Judicial Circuit were not well-served by this arrangement."

The portion of the audit report pertaining to the funds was given to county officials earlier this month for their review. The clerk who handled the funds resigned July 31.

Frank Ybarra, public information officer for the auditor's office, said the field work on Bollinger County's audit is in its final stages, but this section of the audit was released early.

"We thought it was important to break this out and get it to law enforcement officials right away because timeliness is an important issue here," said Ybarra.

Bollinger County Associate Circuit Judge Bill Hopkins said he and Prosecuting Attorney Paul Hahn and Sheriff Dan Mesey asked Col. Fred M. Mills of the Missouri Highway Patrol on Oct. 14 to investigate the matter.

Hahn and Hopkins said they have only seen the preliminary draft of the audit.

Kelly recommended to the judge that he work with the sheriff and prosecutor to obtain restitution of $824 that is still missing and further investigate the irregularities in the fee account.

Hahn said they will wait on the highway patrol investigation before proceeding.

"I can't comment on it other than to say a request has been made for the highway patrol to investigate it," said Hahn. "The highway patrol is involved because it is a public office and it would be appropriate to have an official outside Bollinger County conducting the investigation."

Hopkins said if the investigation indicates a crime has been committed Presiding Circuit Judge William Syler may be asked to appoint a special prosecutor to handle the case.

Syler, who said he has only seen a summary of the audit report, said at this point it is premature to say whether a special prosecutor might be needed. "Whether we have a special prosecutor is up to Paul Hahn," said Syler.

"The fact that the auditor has filed such a report indicates to me if the prosecutor wants to pursue it, that should be done. But the report can come back with any kind of conclusion, so at this point it is too early to tell anything."

Some of the concerns expressed by the auditor on the internal controls and procedures of Division 5 were:

--The duties of receiving, recording, depositing and reconciling criminal-case court money are not adequately segregated. One clerk received all records and all money collected, prepared deposits and bank reconciliations, and prepared and signs all checks. In addition, the clerk did not deposit money in tact or in a timely manner. Cash was sometimes withheld from deposits and was deposited several months after being received.

-- The most recent bank reconciliation performed was for December 1990. The auditor recommended the judge review bank reconciliations and accounting records monthly.

-- Monthly listings of liabilities - money held on open court cases - were not prepared. The auditor said such a review is necessary to document that the bank balance is sufficient to meet all obligations.

The auditor reported that Judge Hopkins has indicated he concurs with the recommendations and is in the process of implementing them.