The financial condition of Miller County is okay, despite the indications of the recently released Missouri State Audit, according to Miller County Presiding Commissioner Tom Wright.
"Miller County is just fine," said Wright.
Missouri State Auditor Thomas A. Schweich released his findings this month from a recent audit, which show a different opinion.
In the November 2014 Missouri Audit by Missouri State Auditor Thomas Schweich's office, Certified Public Accountants Daniel Jones & Associates were hired to audit the financial statements of Miller County for two years ending Dec. 31, 2013. According to the report which gave Miller County a poor rating and negative remarks of criticism over proper procedures in several departments, the scope included the year 2013 but was not necessarily limited to it.
With the objectives of evaluating the county's internal controls over significant management and financial functions, the county's compliance with certain legal provisions and the economy and efficiently of certain management practices including financial transactions, the conclusions showed consistent inadequacies.
The overall report included reviews of the financial condition, sales tax procedures, property tax system controls and procedures, Sheriff accounting controls and procedures, the Public Administrator salary, passport fees and capital assets.
While the audit is addressed to the County Commission and officeholders of Miller County, Wright said he willingly takes the brunt of it as he is head elected official, but the commissioners approve the budgets and they don't have the oversight people think they do.
Wright said all of the departments work well together and they will continue to improve. He said he expected the poor rating especially after he saw the new rating system Auditor Schweich incorporated.
"When I saw that, based on his new rating system, I would have rated us poor also. We have a lot of things to improve on and we are going to. There is a right way to do everything, and we are going to work on that," Wright promised.
Wright agreed some of the departments just aren't getting things done, at least not on a timely manner. He said the audits are guidelines for how to improve and they will take that and work with it.
Some of the results Wright didn't agree with, stating he had some of the documents in his possession.
"I don't know why the auditor's weren't given these by the departments," he said.
Financial condition
When asked of the overall financial condition, pointing out the summary of the audit indicates the General Revenue Fund and Capital Improvement Sales Tax Fund may not have the monies needed to pay off the outstanding debt, Wright said that was not true.
"The Capital Improvement Fund has plenty of money. I don't know what they were talking about," he said.
"Capital Improvement pays for that every year. There is plenty of money in that account," Wright said in disagreement. "We have a bond payment every year that we make. That Capital Improvement Tax was passed to pay for our courthouse and jail building."
Wright said one change already implemented is transfers going into the Road and Bridge Fund will now go to the Capital Fund. He added that it wasn't liked that he was paying salaries either but, he said, "The language of the ballot said monies could be spent on anything ..."
In 1996 when the procedure was originally passed, the ballot language said they could spend monies on roads, bridges, salaries, buildings ... anything, Wright defended.
"So that is how we have been doing it, but I guess the attorney general came out with an opinion later saying it had to be a single purpose," he said.
Wright said he has already directed that be fixed, though he didn't agree with the auditor.
"It will just be spent on county owned buildings," he said.
Sales tax procedures
Sales tax calculations were another issue as the report indicated the 2013 tax levy reductions were improperly reported. Wright admitted the sales tax procedures were a mistake. He said this is based out of the County Clerk's office. There is a formula that is required to be followed which allows the clerk to lower property tax if the sales tax goes up, and if the sales tax goes down the property tax is raised. A mistake was made on the calculations.
"The clerk's office just made a mistake in the formulation and now we work the next two years to remedy that," he said, adding that it wasn't quite as bad as reported.
The interesting thing, according to Wright, is that all of the information is sent to the auditor's office each year and they send back a recommendation on what the property tax levy should be; so they had the wrong information also.
"It absolutely was a mistake and we will fix that!" Wright said.
Also reported was the concern over unlimited access of the County Collector and staff to property tax information. Wright was of the opinion this was just to help ensure something didn't happen.
"They have gone through every collector's office and they didn't think there was enough segregation of duty for oversight. A collector, assessor and the clerk's office all see those figures so that was just something to try and get us to have more oversight," Wright said assuredly.
"It wasn't anything we did wrong," he said. "It was just additional oversight."
County collector, sheriff accounting and prosecuting attorney controls
Reportedly, the County Collector had not prepared annual settlements of property taxes for the years ending February 2013 and 2014. Wright was of the different opinion. He said he was sure they had been completed and had understood there were computer problems.
The Sheriff's department was noted as not having established adequate controls and procedures and showed significant weaknesses. Wright said the problems in the Sheriff's office were out of his control and he would not be able to make comment.
"That is their deal," he said. "I have not had the opportunity to get with them yet but they are their own department ... that is an ongoing thing but that is a problem the Sheriff has to fix."
The report showed the Prosecuting Attorney's office had not established adequate segregation of duties over accounting functions or procedures. Wright said his comments were the same as the Sheriff's department. They are their own entity, he stated.
Public administrator salary
The audit had noted discrepancy with the Public Administrator salary. Wright said he totally disagrees with this as does a judge who is currently reviewing the information.
Wright explained when the public administrator is elected, they are to choose if they want paid by fee or by case load and then submit a written request, all of which is spelled out in state law. Wright went on to say he called the court to see how many cases she had and they responded in writing stating she had a total of 27.
"That is how her salary was set," he said.
We have a guide to follow in statute that says how she is paid based on cases but she is saying she had more. The auditors found some open cases from previous administrators and said she should be paid for those, but Wright disagreed and now a judge is currently going through her cases.
Passport fees and capital assets
Regarding passport fees, Wright said approximately five years ago the Recorder and Circuit Clerk's office were split apart because of the work load, which is where the passports were done. When the department was split, they were left in the Recorder's office but apparently nobody knew the passports were supposed to stay in the County Clerk's office under the jurisdiction of the court system.
Because the County Clerk said she does not have enough time to do them, Wright said Tuscumbia has stopped processing them altogether because they apparently can't legally do them according to state statute unless the money is under the judge's control.
As in prior audits, it is stated the County Clerk has not updated capital asset records since 2003 and they lack detail. Wright defended the department and said this was an inventory and the findings were not right. He said he just saw the 2014 report and doesn't know why the report says 2003. He said he showed them the list and doesn't know what they mean.
In conclusion
In conclusion, Wright reiterated that all departments are elected officials.
"I don't have any power over any of these people, to make them do anything. They are elected like I am. All I have is budget control and once the budget is approved in January, my power is gone," he said. "That's the way it is in county government.
"Our county is doing all right. They make it sound like we're not making it, but we are doing fine." Adding, "We have a lot we need to improve on and there is no reason why we can't."