State releases audit of Vernon County

Wednesday, September 2, 2009

Results are in on a routine state audit of Vernon County, and auditors describe the financial condition of General Revenue and Road and Bridge funds deteriorating, and raised some accounting issues relating to the Sheriff's Office vehicle usage, property tax additions and abatements, compensation for the deputy public administrator, and other items.

Vernon County Presiding Commissioner Bonnie McCord said commissioners hadn't had a chance to review the newly released report "It was on our desks when we came in this morning. I intend to take it home tonight and look over it thoroughly," she said Tuesday.

"I think we've tried to do the right thing and it shows. We're always glad to have their recommendations. We like to do things right and we're glad to implement the changes to do them better."

In many ways, county officials have taken auditors' recommendations to heart and in many cases have already made changes aimed at following those recommendations.

The report said the county's spent more than budgeted in the General Revenue fund in four out of five years, 2004-'08; and blames increasing costs of operating the Sheriff's Office and jail, increasing from $460,000 in 2006 to a projected $585,000 for 2009. The report notes that although the county's one-half cent sales tax and grants are in place, receipts amount to just 56 percent of the cost.

One way auditors suggested the county might mitigate this has to do with some special revenue funds. Auditors said some of these have accumulated big balances, and auditors recommend investigating what, if any, of these funds can legally be used for operation of the departments for which the funds are designated rather than taking that money from the general fund.

Closer monitoring of road and bridge and general funds was recommended, as well as cutting down on discretionary spending.

Commissioners responded that they'll review treasurer's statements weekly rather than monthly, review the statutes relating to those "special funds" and more closely monitor revenue.

Road and bridge

The audit report criticized large discrepancies in the budgeted an actual figures for the road and bridge department and felt administrative transfers were excessive. Commissioners said they already meet with engineers to estimate how many projects will be completed and how much they might cost, but variables like flooding, conservation programs and federal regulations have caused delays in projects over multiple years. Commissioners say the 5 percent of road and bridge fund administrative transfers are allowable under the law, noting that at least half of the commission's time is spent administering road and bridge issues; nevertheless, they'll consider changing that amount in order to increase the ending cash balance of the fund.

Vehicle expenses

Auditors said a written policy is needed for vehicle expenses, both in the Sheriff's Office and in Road and Bridge. Mileage and maintenance logs are not maintained. Vernon County Sheriff Ron Peckman told auditors that the fuel vendor used keeps records; however, logs are not reviewed and reconciled Road and bridge vehicles sometimes use fuel dispensed from portable tanks, and records on usage from these tanks is not recorded, although the sheriff, road and bridge supervisor and commission do review fuel billings for reasonableness each month.

Auditors also questioned the practice of allowing a deputy who lives outside the county to commute to and from work in a county vehicle. The deputy is on call for investigations. Auditors recommended a specific, written policy about the use of vehicles.

The commissions response was that it "will see that a written policy is established which sets out procedures for all county-owned vehicles and equipment per your recommendations."

Taxes

Auditors said the commission should take a stronger role in reviewing property tax additions or abatements and that aspects of contract with cities on collecting penalties and where those penalties are spent should be clarified. Procedures have been put in place to ensure all additions and abatements are reviewed and approved by the commission monthly, and the commission and collector/treasurer have agreed to clarify contracts as needed.

Prosecutor's Office

Auditors said that, as was noted in the last report, deposits aren't always made in a timely manner. For example, a cash count performed Nov. 17, 2008, showed more than nine working days of undeposited collections, and that some money orders or checks were not restrictively endorsed when they are received. Auditors recommended both of these situations be addressed to minimize the risk of loss, and recommended a different type of accounting report be generated for receipts.

The prosecutor's office agreed to take steps to resolve these issues.

Other auditor's suggestions included improving procedures for handling money at the jail, especially relating to inmate commissary accounts and better documentation in certain circumstances, ensure that all payments, including those from wards relating to duties outside the regular duties of the deputy public administrator, be made through the payroll department, and greater control of manual receipts processed through the circuit clerk's office.

Peckman responded that commissary inmate monies will now be handled by a contractor (as of August 2009)and that new procedures are being implemented at the jail.

Public Administrator Tammy Bond said in her written response that she agrees with auditors, and policy changes have been made; and the circuit clerk's office has implemented a new numbering system as the auditors recommended.

A concern that the Vernon County Commission was not keeping minutes of closed sessions also was raised, to which the commission responded, "The county commission has always followed procedures required when going into closed session as noted in the minutes. Written minutes were not previously kept during closed session as no decisions or votes were taken while in closed session. The commission, upon the suggestion of the Auditor's Office has begun keeping closed minutes and will continue the same.

The full audit report is available online at www.auditor.mo.gov.

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