State audit finds flaws, but finds Scott Co. in 'good' overall standing

Missouri's auditor's office found Scott County's financial operations in "good" standing, according to a news release.

It found some flaws, however, citing questionable or improper disbursements including the purchase of solar eclipse glasses and the failure to have proper financial controls in some areas of county government over the past two years.

Auditor Nicole Galloway said in a news release Tuesday the audit raised concerns about the usage of the county's Election Services Fund.

The audit also found fault with financial controls and procedures in the sheriff's department and the office of prosecuting attorney. Officials with those two county offices said the financial issues have been or are being addressed.

The audit questioned the use of the election fund for the purchase of solar eclipse glasses, a banquet for election workers and for the display of American flags.

"State law is very specific about the appropriate uses of these funds, but in reviewing expenditures, we found multiple purchases that did not directly relate to the conduct of elections," Galloway said in the news release.

"Legally, the fund should be used for training programs and supplies or equipment to improve the conduct of elections," she said.

The fund includes money collected through a 5 percent fee on election billings and certain reimbursements from the Missouri Secretary of State's Office, according to Galloway.

The audit found that the fund was used to pay $1,641 in fees and related expenses for meals, lodging and mileage reimbursements for four Missouri Association of Counties conferences in 2016 and 2017 even though conference agenda provided by the county clerk indicated only one hour of training was related to conducting elections.

According to the auditor, money from the election fund was wrongly spent to purchase 200 solar eclipse sunglasses costing $400 for use by election workers and county employees. The solar eclipse occurred Aug. 21, 2017, but no elections were held on that date, the audit said.

The county improperly spent more than $2,000 on an appreciation banquet for election workers in 2016 and paid $250 to an organization to display six American flags in front of the county courthouse on select holidays during 2017, the audit said.

The audit recommends the county reimburse the fund for the "questionable and unallowable disbursements."

County Clerk Rita Milam defended the expenditures in responses included in the audit report.

She said she attended the conferences to listen to speakers discuss election issues and to meet with other clerks to discuss changes in election laws.

She said she purchased the solar eclipse sunglasses "because they were sold out everywhere around the county and various judges and employees asked if I could find some. I purchased them because I felt the safety of the election judges and employees was very important."

Milam defended the use of money from the fund to hold an appreciation banquet for election workers. "Elections could not be held if it wasn't for these men and women working these long hard days," she said.

As for the display of flags, Milam said in the audit report it was an appropriate expense because "I believe the flags stand out and remind people of their freedom to vote."

County commissioners said they would not reimburse the fund for the expenses.

As for the sheriff's office, the audit said the sheriff does not have adequate procedures "to ensure all inmate moneys are refunded upon release."

According to the audit, the sheriff's office as of May 31 was holding $2,074 in the commissary bank account for 397 former inmates. Those inmates were released from jail but did not claim their commissary account balances.

The audit said "proper records and follow-up procedures are also necessary to safeguard against possible loss, theft or misuse of funds going undetected."

During 2017, the sheriff's department did not track all bills or payments received for boarding of prisoners, the audit said.

The sheriff's department collected about $467,000 for civil paper service, bonds, transporting prisoners, inmate money and other miscellaneous receipts in 2017, according to the audit.

The audit also said the sheriff had not entered into written agreements with surrounding counties and cities for boarding of prisoners.

In its response, the sheriff's office said it now has written agreements with other agencies regarding the holding of prisoners and is switching to use of debit cards for all inmates released with funds.

The audit said the county prosecutor's office did not prepare monthly lists of liabilities for the office's two bank accounts, and had not established procedures to routinely follow up on outstanding checks.

As of May 31, 18 checks totaling more than $2,400 had been outstanding for over a year, with one check dating back to 2011, the audit said.

Prosecutor Paul Boyd responded in the report his office is establishing financial controls as recommended by the auditor's office.

mbliss@semissourian.com

(573) 388-3641