Conversion of State Revenue Offices to Private Fee Offices Results in Unnecessary Additional Costs, Noncompetitive Bidding and Missing State Property

The Department of Revenue (DOR) incurred closing costs that could have been avoided, when it decided to close the St. Louis area Deer Creek Office Building in 2005, and was liable for the lease expenditures until it was subleased.

The DOR was granted authority by the state to auction state-owned equipment at the 11 former branch offices. Bids accepted for the equipment ranged from $151 to $3,100 for a total of $16,477 at all 11 offices. While notification of the sealed bid auction was sent to all 182 contract agents operating at that time, only the 11 contract agents operating the former branch offices were allowed to inspect the equipment. In addition, most of these agents used the state-owned equipment for several months. This does not appear to provide a fair, open, and competitive environment for all potential bidders.

Furthermore, the DOR could not account for the disposition of approximately 250 state-owned assets. These 250 items included a laser printer, a fax machine, computers, software, and other miscellaneous items.

Department of Social Services, Children's Division - Early Childhood and Prevention Services - Early Head Start Contract with KCMC Child Development Corporation

Our review of the KCMC's services provided and related records and the ECPS's management of the EHS program identified numerous problems. During the period July 1, 2001 through December 17, 2004, the DSS paid the KCMC over $5.3 million for the state EHS contract. In total during the three years ended June 30, 2004, approximately 15 percent of KCMC's unrestricted revenues were received from state funding, which included other funds provided by the DSS and the Department of Health and Senior Services.

The ECPS did not adequately monitor the financial activities and records of the KCMC. The ECPS met with the KCMC and federal Head Start personnel on a frequent basis regarding program activities; however, the ECPS did not review the financial records of the KCMC or partner agencies to ensure the amounts reported on quarterly claims and year-end reports were accurate and represented allowable costs as defined by the contract. Also, supporting documentation was not available to identify the specific expenses allocated to personnel and indirect costs, totaling more than $750,000, during the period July 1, 2001 to December 17, 2004.

State's Slow Pace to Enhance Homeland Security Efforts May Increase Missouri's Vulnerability

Missouri has lagged behind neighboring states in establishing an intelligence fusion center and progress has been slow toward achieving the goal of communications interoperability. In 2005, a report of Missouri's 28 Homeland Security Response Teams (HSRTs) found communication interoperability problems existed with 46 percent of teams. Issues included a lack of radios, cellular telephones and towers, and equipment age. During this time period, the state's expenditures had exceed $2 million, which is approximately 26 percent of the amount budgeted to address communications interoperability.

The state distributed almost 19,000 individual Personal Protective Equipment (PPE) suits to emergency medical services and law enforcement agencies statewide. Auditors visited 43 agencies and noted several different levels of effective use of PPE. At the police departments for the cities of St. Louis and Kansas City, PPE remained unopened and stored in their original boxes. Furthermore, the distribution of the PPE was not adequately monitored and accurate records of the various agencies that received equipment are not kept.

Tobacco Settlement Funds Not Adequately Accounted For

Through June 30, 2005, the state received tobacco settlement payments totaling over $965 million. However, less than two-tenths of 1%, or only about $1.8 million, of the tobacco payments were spent on tobacco related programs. Approximately 69 percent of Missouri's tobacco payments were transferred to the state's General Revenue Fund and used to cover state budget shortfalls. The remaining funds were spent on various state programs, with a majority of these monies used to replace funds cut from the state's Medicaid Program. All tobacco funds transferred to the state's General Revenue Fund were ultimately appropriated without any method of tracking how the funds were spent. Only a small portion of the tobacco payments were used to enhance other state programs, and most of these programs were later discontinued due to budget constraints.

Tobacco payments were distributed to nine different funds and often redistributed again, with some monies held in three different funds before ultimately being spent. This practice has resulted in multiple, and some excessive, cost allocation charges totaling over $13 million.

DNR- Solid Waste Management Program Lacks Oversight

The DNR provides funding through the Solid Waste Management Fund to assist districts in the development of an adequate infrastructure for solid waste reduction, recycling, and resource recovery. Our audit included onsite reviews of four of the 20 statewide Solid Waste Management Districts. During the year ended June 30, 2005, approximately $5.9 million, was allocated for district grant funding. In one district, auditors noted expenditures that appeared to be unnecessary and inappropriate use of public funds, including paying for the services of a lobbyist, artwork and books. Some districts are accumulating large fund balances and are not spending grant funds on a timely basis. Additionally, one district awarded $15,000 in grants to each county prior to reviewing and evaluating grant applications received from private individuals and businesses, of which some were turned down due to lack of available grant funds.

Missourians to Pay Nearly $800 Million in New Taxes;
Developers Taxing Consumers Without Their Knowledge

Transportation development districts (TDDs) are established for the construction of transportation-related projects, and governed by a board of directors with the authority to impose sales taxes to pay those costs. All of the districts established as of December 31, 2004, have imposed a sales tax on retail items sold within the districts' boundaries, resulting in a higher sales tax than the retail establishments outside the district's boundaries. In many instances, it appears only a single property owner/developer petitioned for the creation of a district and approved the additional tax.

Our audit disclosed issues regarding the TDDs including: no requirement for the public to be notified when a property owner(s)/developer files a petition with the circuit court to form a TDD, neither registered voters nor their elected representatives are involved in the decision to levy taxes for most TDDs, no requirement the petitions filed with the circuit court include any information regarding estimated transportation project costs or the anticipated revenues that will be collected over the life of the TDD, and in many cases, significant project costs were initially paid by the private developer(s), who were then subsequently reimbursed by the TDD after bonds or other debt had been issued.

In a survey of the 69 districts, officials of 68 of the TDDs reported total estimated transportation project costs of over $578 million. In addition, 62 of the 69 TDDs reported total estimated revenues of over $787 million would be collected during the lives of the respective TDDs.

Children Remain in State Custody Almost 3 Years Prior to Adoption

Our audit regarding the State Adoption Program found that the number of adoptions has been decreasing in the last three fiscal years and the Department of Social Services is still not petitioning to Terminate Parental Rights (TPR) and / or achieving child permanency in a timely fashion.

Auditors reviewed 60 of the 288 cases of children who had been in state custody for over 15 of the last 22 consecutive months in fiscal years 2003 and 2004, focusing on children whose goal was adoption and who had no action or incomplete action on TPR. Auditors chose test items in Greene, Jasper, and Jackson counties and St. Louis City because they had almost half of the cases meeting these specifications. Issues leading to delays in TPR included: untimely court hearings; child mental and behavior issues; unsuccessful attempts at placement with other relatives; continued involvement of biological parents in their children's lives; and some courts' unwillingness to TPR until an adoptive placement is found. In addition, a children's division report dated June 30, 2004 showed 250 children had no case goal of adoption. Our review of the 104 who had been in care more than 15 of the past 22 months found that 96 percent did have an adoption goal, but it was not entered in the system.

Department of Conservation (MDC) Distributed Over $9.2 Million Through Grants, Cooperative Agreements and Cost Share Programs

Auditors reviewed some of the contracts discussed in our previous audit (Report No. 2002-108) and determined that while the MDC is more closely monitoring these projects, some improvement is still needed in ensuring employees are assigned responsibility for monitoring these contracts. Additionally, during the two fiscal years ended June 30, 2004, the MDC expended over $980,000 on clothing reimbursements for department employees and volunteers. Also, the MDC expended approximately $63,000 on gifts and awards for employees during that time period.

Our audit reviewed the cost-effectiveness and efficiency of these state programs. Both programs cost the state about $100 million during the audit period examined. During that time, the state worked with nearly 1,300 providers to distribute medical equipment and one contractor to transport recipients to appointments. Our audit found that Missouri pays more for medical equipment than other states and by bidding equipment contracts the Durable Medical Equipment program could save millions. In addition, auditors found the state paid the sole Medicaid transportation contractor $44.1 million over a period of 15 months, with the company realizing at least $19 million in gross profit.

Department of Mental Health Clients Not Protected From Abusive Workers

This audit reviewed how well the Department of Mental Health tracks, investigates and handles incidents and investigations of individuals committing abuse or neglect against DMH's 140,000 clients. From July 2003 through August 2004, 5,689 incidents were reported. Notable finding include, background check procedures were not always followed; employees who previously abused clients were still working between April 2003 and April 2005; and abuse investigations lack independence and consistency.

Follow-up Audit on Oversight of Medicaid Prescription Drugs Again Finds Recipients Who Abused the Program for a Year or More Without Detection.

Since 2002 Medicaid drug costs have doubled to $1.2 billion. Our audit found division policy allows a recipient to use four or more pharmacists and five or more physicians to obtain prescriptions before they are targeted as a potential system abuse. Auditors found division staff did not review a quarterly list of potential abuses until the data was 6 to 12 months old. Additionally, auditors found division officials do not restrict recipients who obtain drugs from multiple prescribers, but just one pharmacy.

Oversight Controls in the State's Medicaid Prescription Drug Program

Missouri's Uninsured Motorist Cost Insured Motorists Millions Every Year

Missouri State Auditor Claire McCaskill finds the state's Department of Revenue needs to be more effective when it comes to ensuring motorists obtain insurance and remain insured. While state law requires all Missouri motorists to be insured, insured motorists bear the costs of uninsured motorists through the required uninsured motorist coverage included in vehicle insurance policies.

Uninsured motorists cost Missouri's insured motorists about $90 million a year. The audit finds data from insurance companies not always accurate, citizens not being required to prove insurance when tested by the state, a million vehicles excluded from monitoring, and reinstatement fees for uninsured motorists among the lowest compared to other states.

Statewide Law Enforcement Audit Reports on New Hires, Discipline, and Training Found Lacking Throughout Missouri

Missouri State Auditor Claire McCaskill releases a report that finds the state's regulatory program of police officers throughout Missouri somewhat lacking. Various tests conducted of Missouri's Department of Public Safety's Police Officer Standards and Training program, known as the POST program, found that at least 75 of 645 law enforcement agencies had not complied with one or more state regulations.
 

Missouri Still Lacking Adequate Oversight and Protection for Animals

A follow-up audit report finds most previously cited problems still occurring with commercial breeders and other licensed facilities. Auditors found the majority of findings noted in the first audit of the animal care inspection program, released in February 2001, were still occurring four years later.

State auditors found   Missouri Department of Agriculture, Division of Animal Health inspectors did not always cite obvious violations and criticisms relating to not checking medications, verifying dog counts or identification were called "nitpicking". Three years ago our audit found state inspectors had not fined, revoked or suspended licenses of any commercial breeders or licensed facilities during 1999 and 2000, the period of our first review. Since then, only two administrative hearings have been held regarding problem facilities.
Commercial dog breeders have no incentive to comply with Missouri laws, leaving canines at risk for substandard care.

Parents Fair Share Program Needs Improvement

The state's Parents Fair Share programs goal is to assist unemployed and under-employed parents in obtaining jobs and becoming involved in their children's lives, including paying child support.  However, our audit found as a result of the state moving the program from the Department of Social Services to the Department of Economic Development - Division of Workforce Development program referrals were down in 2004.  Therefore fewer non-custodial parents were given the opportunity to participate in the program, which could have direct results on the amount of child support collected from these parents.

Half of Missouri's Charter Schools Did Not Meet Teacher Certification Requirements

An audit by Missouri State Auditor Claire McCaskill finds Charter School sponsors and the Department of Elementary and Secondary Education (DESE) have taken limited action to ensure charter schools complied with state laws and regulations, including teacher certification requirements. Auditors found half of the charter schools in operation in September 2003 did not meet the 80 percent teacher certification requirement, which is lower than the 95 percent teacher certification requirement for public schools. Since September 2003, sponsors had only placed four schools on probation or notified the schools that their charter renewal was in jeopardy for noncompliance. Missouri public schools face loss of accreditation and state funding when noncompliant. In fiscal year 2003, DESE provided approximately $73 million in state and federal funds to 25 charter schools to educate nearly 10,000 Missouri children.

Management Weaknesses Increase The Risk Ineligible Recipients Remain Active In Missouri's Medicaid Program

As of June 30, 2003, eligibility had not been redetermined for a year or more for 383,004 of 934,453 recipients (41 percent). In July 2002, caseworkers were notified they could stop doing routine eligibility redeterminations.

Federal regulations require a Medicaid recipient furnish a valid social security number to receive benefits, but auditors found caseworkers were not obtaining valid numbers on all recipients. as of June 30, 2003, auditors identified nearly 45,000 active Medicaid recipients without a social security number or an invalid number in department computer systems. Obtaining valid social security numbers for all recipients is an important step in ensuring only eligible individuals received Medicaid services.

Costing State An Estimated $50 Million Of State General Revenue.

Follow-up Report Reveals Missouri Children Still At Risk of Repeat Abuse

The audit finds initial contact with children reported abused is still not timely. Face to face visits are supposed to occur within 24 hours of a call warranting investigation and within 72 hours for purposes of assessment, however, auditors found that in 16 percent of cases tested caseworkers did not see the child within required time frames. Also, auditors found caseworkers only about half the time adequately follow-up on cases involving family services, placing children at risk.

Audit Finds Missouri Children Risk Repeat Abuse

Statutory Changes and Improvements in Management and Oversight Would Benefit the Senior Rx Program

The Missouri Senior Rx program was established in a September 2001 special legislative session to help seniors with the cost of prescription drugs. The audit found program officials have not implemented a results-based strategic planning process outlining specific goals to be achieved. As a result, they cannot ensure accountability. Auditors noted enrollment was less than half what was anticipated for fiscal year 2003 and declined in fiscal year 2004. Additionally, the Senior Rx program and seniors could have saved over 12 percent of total prescription expenditures ($2.9 million of $23.6 million) in fiscal year 2003 by using pharmacy reimbursement options similar to the state's Mediciad program.

Better Management Of The Foster Care Support Functions Is Needed To Improve Services

This audit is the second of two reports on the effectiveness of Missouri's foster care system and focuses on core program support functions within the Children's Division of the Department of Social Services, including appropriate care for the children served, correct payments to placement providers, and retention of experienced foster parents.

Foster care caseloads were unable to be determined because division databases are not current. The foster care case management system listed 923 more social workers than were on the payroll and had numerous errors that would affect the number of cases listed. Background checks conducted by the division on prospective social workers do not include the Family Care Registry, which identifies those individuals excluded from working for the Department of Health and Senior Services or Mental Health because of their previous history.

In fiscal year 2002, state agencies achieved participation of 9 percent minority business (MBE) and 3 percent women-owned business (WBE) on $1 billion in goods and services and capital improvement expenditures. These percentages fell short of the state's participation goals of 10 percent MBE and 5 percent WBE as set by a 1998 executive order.

Participation results in 2002 were higher when agencies made expenditures through the Office of Administration (OA), although OA's reporting of its program results was not entirely accurate. Auditors found OA's Design and Construction (D&C) division personnel overstated MBE/WBE accomplishments on three projects by about $2 million and that D&C personnel counted minority, woman-owned subcontractors as both MBE and WBE. The D&C's results also included work completed by non-certified MBE/WBE's. In addition, auditors found OA did not require MBE/WBE participation on all eligible state contracts and that MBE/WBEs were not always made aware of all contract opportunities.

State Universities And Colleges Need More Cost Containment Measures To Balance Increasing Tuition

Providing higher education at an affordable price has become increasingly difficult with recent state budget pressures and large decreases in state funding. Average tuition for Missouri's 4-year public colleges and universities is the highest among the Big 12 states and second highest among the contiguous states. In addition, a national report ranked Missouri's recent tuition increases among the highest. This audit reviewed in-state undergraduate tuition levels at the state's thirteen 4-year public colleges and universities and analyzed trends in annual tuition, state support, enrollment and operations between 1998 to 2003.

Audit Finds Per Pupil Expenditures Among Missouri School Districts Less Equitable Now Than Before Formula Was Rewritten In 1993

In school year 2002, the foundation formula distributed to the public school districts approximately $1.6 billion for basic entitlement and an additional $328 million for the at-risk entitlement. Various categorical add-ons to the formula provided approximately $509 million of additional funds to public school districts.

The foundation formula contains a hold harmless provision, which states that no district shall receive less state aid per pupil under the new formula than it received in school year 1993. As a result of 1998 legislation, some hold harmless districts receive funding in excess of school year 1993 levels due to increases in the number of at-risk students within the district.  Hold harmless districts have the ability to spend more per pupil with less of a local tax burden. Hold harmless districts have increased from 10 districts in school year 1993 to fifty-four districts in school year 2002.

School Bus Safety Relies On Thorough Driver Screening And Consistent Bus Inspections, But Auditors Found Weaknesses In Both Areas

Current state law is supposed to prevent school bus driver applicants with felony convictions of disallowable offenses including: drug possession, assault, domestic violence and prostitution, from obtaining permits to drive school buses. But the law is not working, the background screening procedures are insufficient, and the state criminal information is incomplete. As a result, an indeterminate number of individuals with such felony convictions are allowed to work as licensed school bus drivers.

"STATE BUSINESS": Auditor Finds Answer Questionable After Examining Use Of Missouri's State Plane Fleet

A report released by Missouri State Auditor Claire McCaskill points out how the state's passenger plane fleet has become too large, increasingly costly, and not suited for state flight needs.

The report finds agency officials used chartered planes for flights when state planes were available. At other times, state planes carried state workers to retirement parties, receptions, and funerals of relatives. Findings of the report encompass a review of more than 4,000 flights that were charged to the state.

Many Public Bodies Cannot Prove Compliance With All Closed Meeting Provisions Of The State's Open Records Statutes

This report is the third in a series of audits showing how well public bodies comply with the Sunshine Law. Auditors sent the public records request on official State Auditor's Office letterhead to 319 public bodies and the response times ranged from 1 to 171 days. Fifty-seven of the responding public bodies did not answer the request until after receiving either a follow-up letter and/or a phone call. On average, public bodies took 31 days to respond to Sunshine Law requests by auditors regarding closed meetings held as opposed to the 3 business days allowed by law.

Auditors reviewed practices of 152 public bodies which held closed meetings/sessions in 2001 and found open meeting minutes of 75 percent of those public bodies reviewed identified the planned discussion topics for the closed meetings and recorded the members' votes. Our audit found 50 percent of the public bodies that submitted meeting notices to us did not include the date and time of posting on the notices. While a posting date and time is not required, a date/time stamp would prove the public body posted the notice at least 24 before the meeting. In addition, auditors found at least 25 percent of the public bodies reviewed did not keep closed meeting minutes.

Inadequate Sunshine Law Policies Exist For More Than Half The State Agencies, Boards and Commissions, Which Can Lead To Non-compliance.

More Aggressive Enforcement Actions Could Improve Child Support Collections

Missouri collected no more than 20 percent of the child support owed to 538,000 custodial parents and their children from fiscal years 1996 to 2001, leaving over $1 billion uncollected.

The Child Support Enforcement Division identified 176,279 cases with no address or employer information for the delinquent, non-custodial parents. Additionally, data showed only 29 percent of computerized enforcement actions helped collect more child support.

Minor Improvements To Parents As Teachers Program Could Increase Current Success

Changing procedures for allocating program funding and monitoring program expenditures would further improve the program. Eighty-nine percent of the participants surveyed by auditors said the program met its goal. About 81 percent said the program successfully reached new parents.

In fiscal year 2001, 85 schools returned more than $288,000 of the $30.3 million program funds to the department after not serving enough families as set in quotas. These funds could not be reallocated to other schools in need because the funds went back to the state's General Revenue Fund at fiscal year end.

Higher Education Report Cites Lack Of Financial Aid Oversight

The Department of Higher Education has failed to adequately monitor student Financial Aid information provided by colleges and universities throughout Missouri. Meanwhile some payments to consultants, and the department's commissioner raise questions about whether or not enough financial controls were in place to guard against wasteful, as well as questionable spending.

State Credit Cards Are Issued To Employees With Excessive Spending Limits And No Assessment Of Who Actually Needs One, Which Leaves The State Unnecessarily Liable

This audit evaluates the state's procurement card purchasing system, in which 2,600 employees have state credit cards for state business purchases.  Auditors analyzed how employees used the cards and departments reviewed these purchases.  State guidelines did not require employees to seek approval for purchases beforehand, unless the purchase exceeded the $1,000 single transaction limit.

Audit Indicates State Has Problems Recruiting and Retaining Teachers

With a high percentage of education graduates and/or teachers receiving their initial certification never entering the public teaching workforce coupled with a high turnover rate, the experience level of the state's public school educators is declining and the school districts are continually faced with recruiting new teachers and battling to address teacher shortages in certain areas. Due to the high turnover rates for beginning teachers, the percentage of the teaching work force with experience of 0 to 5 years has actually increased from 21 percent in 1992 to 31 percent in 2001.

STATE AUDIT FINDS UNLICENSED DAYCARE PROVIDERS CONTINUE TO OPERATE

Number of Unlicensed Missouri Daycares Unknown

An audit released by State Auditor Claire McCaskill finds state officials do not actively seek out unlicensed child care providers throughout Missouri and state penalties do not deter unlawful daycare operations.

Unlicensed providers can only be charged with an infraction, which carries a maximum $200 fine when first issued. The fine has not deterred providers from operating illegally. More disturbing is the lack of knowledge by Bureau of Child Care officials as to how many unlicensed providers operate in Missouri. 

State Medicaid Program May Pay Too Much For Prescription Drugs and Reimburse Pharmacies More Than Necessary

Missouri's Medicaid outpatient prescription drug costs have more than doubled in the last five years and totaled $770 million in fiscal year 2001. The audit focuses on the Division of Medical Services' effort to reduce prescription drug costs. Auditors found Missouri has not been as proactive as other states with certain cost containment programs.

CHANGES TO SEX OFFENDER REGISTRATION LAWS AND BETTER MONITORING PRACTICES COULD INCREASE COMPLIANCE AND ALERT MORE CITIZENS

An October 2000 Missouri Supreme Court decision effectively released half of all sexual offenders sentenced to probation from having to register.

In a detailed review of registration lists, auditors found 36 percent of the offenders listed had not met their most recent registration requirement. Missouri legislators first established the registration law in 1994 and have since revised the law several times. Some revisions to the laws and court decisions have affected the degree of compliance.

PROSECUTORS AGREE THAT PUBLIC'S RIGHT TO KNOW IS PARAMOUNT

Jefferson County Prosecutor Bob Wilkins tells reporters in St. Louis the importance of placing sex offender registrants on the internet. St. Louis County Prosecutor Bob McCulloch and St. Louis Circuit Attorney Jennifer Joyce stood by Wilkins and the State Auditor's report. Under current law, all convicted sex offenders have to register within 10 days of coming into a county and verify their information yearly or every 90 days, in most cases. The public can then obtain a listing of sexual offenders living in their area.

STATE DOES NOT TRACK OUTSTANDING TAX CREDITS CAUSING INACCURATE REVENUE PROJECTIONS

Economic Impact Studies On Credits Still Difficult To Perform Due To Poor Data

State officials do not track the total dollar amount of tax credits issued but not yet redeemed. Not knowing this amount can lead to inaccurate state revenue projections. In addition the data collected on many of the 35 tax credits administered by the Department of Economic Development is not complete enough to analyze a tax credit program's economic impact.

State law mandates the State Auditor's office analyze the economic impact of each tax credit program. This report is the second such analysis and focuses on six programs. Auditors again found an impact study difficult, if not impossible in some cases, due to inadequate data. In addition, auditors question continuing the Qualified Research Expense tax credit and call for closer monitoring of residential projects using the Historic Preservation tax credit.

AUDITOR RELEASES ADDITIONAL COST SAVING REPORTS ON FLEET MANAGEMENT AND TRAVEL

State Officials Need More Assurances That The State's Vehicle Fleet Is Efficiently Used

This audit details the status of statewide fleet management policies and found ample room for improvement. No one knows how many vehicles the state owns. The lack of a centralized vehicle management database results in inconsistencies among state entities. About 29% of the 180 passenger cars tested by auditors were driven less than 5,000 miles a year. Low mileage is an indicator that a fleet has too many vehicles or the cars are inefficiently used.

About $3 Million Could Be Saved With Changes In State Business Air Travel And Meal Reimbursements

Contracts with airlines are key to cutting costs in half. Missouri employees pay more than triple what Georgia employees pay for the same flight between Atlanta and St. Louis. This cost gap exists because Georgia officials negotiated an airfare contract. State officials could save an estimated $1.8 million by eliminating reimbursement for noontime meals when employees are not traveling overnight.

State Spent More Than $10 Million On Food For Non-Traveling Employees In Fiscal Years 1999-2000

Auditors reviewed the costs incurred by state agencies to feed employees during various agency-sponsored events including meetings, employee retirement receptions, training sessions, employee recognition events and public marketing events to spotlight state products. State officials spent more than $10.6 million in two years on food, mostly for their employees. Meal costs reimbursed to employees for business-related travel expenses were not included.

Auditors focused on fiscal year 1999-2000 expenditures identified in the state accounting system as "agency-provided food". After looking at nearly 47,000 transactions from every branch of government (executive, legislature, judiciary and all state agencies) auditors targeted their review and found meetings often scheduled around lunch, no price limits on meals, and other alarming expenditures.

Missouri Highways Rank Near The Bottom Nationally In Revenue Spent Per Mile

Missouri's roads and bridges are deteriorating and generally in worse condition than those in neighboring states, partly because Missouri is responsible for a larger highway system than neighboring states with the sixth largest in the nation. Missouri is receiving less revenues for highway purposes and expending less money (on a per mile basis) than its neighbors. Missouri is well below the national average of $110,255 per mile.

Missouri roads are rated as poor or very poor. Missouri ranked first compared to its neighboring states for highest percentage of total substandard bridges and ranks seventh in the nation in the percentage of substandard bridges. 

Missouri's Division Of Motor Carrier And Railroad Safety Should Seek Additional Funding For Upgrading Railroad Crossings

At the current rate of grade crossing upgrades, it will take the state approximately four years to upgrade the grade crossings it has currently identified as most needing upgrades. The division does not publicly release a ranking of grade crossings by the exposure index. The index is the main basis for selecting which grade crossings are being considered for upgrade. Releasing the index information, along with accident and complaint information, may also serve as a public awareness measure, warning individuals of the need to be more cautious and alert at certain crossings.

Missouri Included Among Top Ten States With Outstanding Warrants; Audit Report Finds More Felons Could Be Arrested By Running Warrant Lists Against State Agency Databases

Missouri has been listed among the nation's top ten states with outstanding criminal warrants. This audit reviewed how well various state law enforcement agencies manage the state's approximately 728,000 outstanding warrants and determined system improvements to arrest more felons.

Audit staff ran persons with warrants in the Highway Patrol system against at least 10 different state databases, including childcare vendors, school teachers and public assistance recipients. Auditors found 15,761 felony warrants that matched with important location data already listed with the state.

Missouri State Law Favors Instant Loan Lenders

This audit reviewed Missouri’s growing instant loan industry and the Division of Finance charged with regulating it.  Current statutes do not limit the interest rates lenders charge a consumer.  As a result, in Missouri, lenders commonly charge up to 300 percent interest on a $500 title loan or 391 percent interest on a $300 payday loan. 

Missouri law allows lenders to renew loans up to a year, set unlimited interest rates and concurrently loan money from various instant loan operators.  Although, Missouri law does not give the Division of Finance explicit authority to suspend or revoke the license of a lender who violates state law. 

Inadequate Sunshine Law Policies Exist For More Than Half The State Agencies, Boards and Commissions, Which Can Lead To Non-compliance.

This audit examined how well Missouri's nearly 200 state agencies, boards and commissions comply with public records requests under Sunshine Law provisions. The audit reviewed the timeliness of processing a request; the reasonableness of denying a request and the fees charged for such requests.

Charges to obtain a 10-page document requiring a 15-minute search can range from free to $20 depending on which agency handles the request.

NEGOTIATED BONDS COST MISSOURIANS MILLIONS

Missouri Private Bond Sales Substantially Exceed National Averages

Missouri Municipalities, School Districts, and other Tax Authorities Choice of Bond Negotiation Over Competitive Bidding Costs Taxpayers Millions.

Missouri's general obligation bond market has been virtually closed to competition and the privately sold bonds have cost taxpayers an estimated $83.2 million in excess interest costs since 1997. Many underwriting companies have privately purchased general obligation bonds exclusively while other companies have participated in both private and competitive sales. Three firms bought two-thirds of the 515 bonds sold since 1997.

Millions Owed Missouri Crime Victims; Legal System Benefiting At Victim Expense

The State Auditor's Office released two separate audits which show individual victims are being shorted when receiving court ordered restitution, as well as overlooked in general due to lax oversight of the Crime Victims Compensation Program.

At least $37 million in restitution is owed to crime victims, but the money may never reach them because Missouri laws are not victim friendly. One of the two audits examined how well Missouri restores the financial loss to crime victims through collecting court-ordered restitution. In 1999, more than half of the cases requiring restitution received no payment at all. When offenders make their court-ordered payments, the victim ranks 36th among 38 which draw from these funds.

Crime Victims Compensation Program
Collection and Distribution of Restitution for Crime Victims

Domestic Violence Shelters Turn Women and Children Away

More than 5,000 women and children were turned away from Missouri domestic violence shelters, even though millions of dollars in additional funding could have been available to help these victims.  State laws do not maximize the state’s ability to protect victims.  One city held more than $300,000 even though local shelters reported turning away at least 1,300 victims.  The most critical change needed in state law is to establish a centralized collection and distribution system for all domestic violence fees required by state statute.