District D

Audit Finding Resolution Summary
Region D Solid Waste Management District
Date of Final Audit Report: Dec. 7, 1998
For The Fiscal Years: 1992, 1993, 1994, 1995, 1996, 1997
Date of Final Resolution: May 1999

Note Icon. This document is a summary of the actual findings and resolutions determined by this audit. The document is posted here for informational purposes only and not all data from the audit is included here. A complete copy of the audit material may be requested under Section 610, Revised Statutes of Missouri and can be obtained by contacting the Solid Waste Management Program (SWMP) at 573-751-5401.

1.  Audit Finding and Recommendation: Interest Income.
District grant funding and local cash match is placed in a money market cash account. Additionally, Region D has purchased a six month Certificate of Deposit in the amount of $41,000 from excess cash balances. The Certificate of Deposit was purchased on June 16, 1996, and renewed each six months thereafter. Interest income derived from these investments in the amount of $12,225 has not been reported to the Department of Natural Resources (DNR). The DNR General Terms and Conditions (GTC) II.C. states that program income shall be deducted from outlays unless the DNR, as negotiated with the recipient, specifies an alternative method in the agreement. Furthermore, in accordance with sound accounting practices, all program income must be tracked with proper accountability.

The auditor recommended the program reduce future payments to the district for the interest earned in fiscal year 1992 through fiscal year 1997 or that the district obtain permission from the program to use this interest income for administration of the program. Should the district receive permission from DNR to retain interest income, then they are required to implement a system of tracking and accounting for all funds that is accurately maintained and ensures interest is treated as project money.

District Response:
A letter was written to the SWMP's director explaining their past expenditure of interest funds and seeking permission to spend accrued interest in the future. A response explained that the past expenditure was allowable under the provisions of the rule and future projects qualifying under the same rule would also be allowable with district board approval.

Final Resolution:
The SWMP considers Finding 1 resolved as the district complied with the auditor’s recommendation as required by GTC, II.C. The correspondence from the district to SWMP requesting the approval, dated July 17, 1998, as well as the approval letter from SWMP to the district, dated July 30, 1998, is a part of the district’s permanent file.

2. Audit Finding and Recommendation: Lack of Workmen’s Compensation Insurance.
The district does not have workman’s compensation insurance coverage on employees. Furthermore, the district planner frequently makes on-site visits at locations that would be considered having hazardous work conditions. The DNR’s General Terms and Conditions II.E. requires the financial management system to have effective control and accountability over assets and that district assets be adequately safeguarded. The auditor recommended the district be required to obtain workman’s compensation insurance coverage on all employees.

District’s Response:
Workman’s compensation insurance has been subsequently purchased for all employees. Evidence of such was provided to DNR. A deductible was not a requirement of this insurance. Therefore, no program income will need to be used to cover a deductible.

Final Resolution:
The SWMP considers Finding 2 resolved as the district complied with the auditor’s recommendation as required in GTC, II.E, as indicated during the exit interview on June 24, 1998 and with insurance policy copies dated, August 6, 1998. A copy of the insurance policy was provided to the SWMP on April 23, 1999, and will be retained in the district’s permanent file.