Auditor Fitzpatrick gives Livingston County a "good" rating in new audit report

An audit released today by Missouri State Auditor Scott Fitzpatrick finds Livingston County is well managed with only a few areas of county government in need of improvement. The report gives the county a "good" rating while recommending improved controls and procedures for the County Commission, Sheriff's Office, and Prosecuting Attorney's Office.

"Taxpayers should be proud of their county officials for running the county efficiently. While there is no indication of fraud in any of the areas we reviewed, we did find some weaknesses that could increase the risk for fraud to occur. I commend Livingston County officials for committing to act quickly to put our recommendations into place to ensure their county government operates as accountably and transparently as possible," said Auditor Fitzpatrick.

In reviewing the operations of the Livingston County government, Auditor Fitzpatrick's office found the Sheriff's Office is at an increased risk of fraud because it does not maintain a complete and accurate seized property inventory listing and it does not conduct periodic physical inventories of seized property. As the audit points out, the often sensitive nature of seized property makes it vital to ensure it is accounted for properly. The report recommends the Sheriff's Office implement adequate internal controls that will significantly reduce the risk of loss, theft, or misuse of the property.

The report also recommends the Prosecuting Attorney's Office could reduce fraud risk by segregating accounting duties or performing documented supervisory or independent reviews of the accounting records. The audit found the Office Manager is responsible for receipting, recording, and depositing receipts; making disbursements; and reviewing and transmitting payments collected for court-ordered restitution. In addition, the Municipal Clerk is responsible for bad check transactions including receipting, recording, depositing, and disbursing. The Office Manager indicated supervisory reviews are not performed because there is a low amount of money receipted in the office and she did not realize the importance of supervisory reviews. The report notes that proper segregation of duties is necessary to ensure transactions are accounted for properly and assets are adequately safeguarded. If proper segregation of duties is not possible, periodic supervisory or independent reviews of detailed accounting and bank records are essential.

Other findings in the audit include the County Clerk and County Commission not reviewing or approving property tax additions and abatements; a failure by the County Commission to have a records management and retention policy that includes electronic communication; a lack of adequate documentation for civil paper service requests retained by the Sheriff's Office, and a mid-term salary increase to the Sheriff totaling $12,691 in violation of constitutional provisions.

You can read the complete report here.