An audit released Thursday was critical of the financial condition in Dekalb County, Missouri. State Auditor Tom Schweich says the overall performance of the county was rated “Fair.”
An audit report indicates the general revenue fund is in poor financial condition, and several potential liabilities, including courthouse repairs and the declining financial condition of the jail, could negatively impact the county’s finances.
Scheich says the county did not properly reduce the general revenue property tax levy in past years and must continue to reduce the levy to zero to make up for past excess collections.
The county commission does not review budget-to-actual reports and overspent the general revenue fund budget in 2010 by approximately $32,000.
The report also says the Davies-DeKalb Regional Jail District Commission has not provided adequate oversight of jail operations. As a result, the financial condition of the jail operation is declining, and management of the jail needs improvement. As of Dec. 31, 2011, an investigation was still ongoing into accounting irregularities and possible misappropriation of assets during the term of the former jail administrator.
The jail’s operating account ending balance declined from $2.8 million in 2008 to $1.2 million in 2011, due largely to a reduction in receipts, but the jail has not analyzed whether rates to house and transport outside prisoners are adequate.
Neither the county commission or the county clerk reviewed the activities of the county collector-treasurer, so the county lacked intended checks and balances. The county clerk did not prepare or verify the accuracy of the current or delinquent tax books, as required by state law. The county clerk did not reconcile court orders for additions and abatements to actual changes made to the property tax system, so errors or irregularities could go undetected.
In the prosecuting attorney’s office, accounting duties were not adequately segregated, and the prosecuting attorney did not adequately oversee financial functions and records. Bank reconciliations and liability lists were not prepared from September 2009 to August 2011 for the main account until requested by audit staff.
The public administrator did not file annual statements timely. Our review of three wards noted that the two annual settlements due in 2010 were late. Neither the associate circuit court nor the public administrator adequately reviewed the annual settlements, and errors went undetected. In one instance a $25,000 life insurance policy was not reported, and in another real estate valued at $115,000 was omitted.
Because counties are managed by several separately-elected individuals, an audit finding made with respect to one office does not necessarily apply to the operations in another office. The overall rating assigned to the county is intended to reflect the performance of the county as a whole. It does not indicated the performance of any one elected official or county office.
To view the complete report, Citizens Summary and audit rating scale, click here.