Auditor Galloway releases audit of Phelps County: Concern with poor bank reconciliation practices
State Auditor Nicole Galloway today released her office's regularly-scheduled audit of Phelps County, which gave the county a rating of "fair." The concerns discussed in the report include inadequate oversight of the county collector's financial activities, poor bank reconciliation practices of the prosecuting attorney's office, unsupported transfers to the general revenue fund, and bonuses paid to Phelps County Board for the Developmentally Disabled employees.
The audit found the county commission and the county clerk did not adequately verify the accuracy and completeness of the collector's annual settlements. The lack of adequate verification can mean an increased risk of loss, theft, or misuse of property tax monies going undetected, and less assurance the annual settlements are complete and accurate.
The audit also reported the prosecuting attorney's office does not prepare adequate and timely bank reconciliations and does not maintain an adequate list of liabilities. In addition, the county commission did not maintain documentation to support the annual transfer from the county's unemployment fund to the general revenue fund and had not established a comprehensive personnel policy. The county clerk and the county commission also did not ensure county commission meeting minutes were prepared and approved timely.
The audit also found the Phelps County Board for the Developmentally Disabled improperly paid bonuses to employees in 2018 and 2020. Bonuses are not allowed by the Missouri Constitution.
The full report on Phelps County can be found here.