Audit recommends increased oversight in several county offices, better documentation of commission actions; audit receives overall rating of “poor”

JEFFERSON CITY, Mo. — Missouri State Auditor Nicole Galloway today released an audit of New Madrid County that detailed how state payroll taxes and required reports were not received by the state for more than five years, resulting in more than $50,000 in interest charges. The audit made recommendations to quickly detect future payroll errors and detailed several areas in need of increased oversight.

“Mistakes happen, but it’s important to have processes in place so that issues can be quickly identified and addressed,” Auditor Galloway said. “This was not the case in New Madrid County and, as a result, the taxpayers were on the hook for an additional $50,000 in interest. I urge county officials to implement the recommendations in our audit to ensure there are adequate checks and balances.”

In October 2018, the county clerk became aware of notices from the Department of Revenue stating there were unpaid state payroll tax withholdings. The department then notified the clerk that these withholdings had not been paid for most months from April 2013 through August 2018, a period of more than five years. In 2019, the county paid the $382,047 in delinquent tax withholdings, but was also responsible for an additional $51,333 in interest. According to the county clerk, payments for payroll tax withholdings were prepared during the five year period, but were sent to the wrong address.

The audit found lack of oversight over the clerk’s payroll duties and records allowed the payroll tax issue to occur and go undetected. Additionally, the county treasurer did not routinely follow up on outstanding checks and 31 outstanding checks totaling $209,945 related to state payroll tax withholdings.

The audit also recommended better processes for the county commission to document its review and approval of county spending. The commission reviewed invoices during meetings, but did not document this review or formally approve invoices for payment. Additionally, access to and use of a signature stamp with the signatures of both the county clerk and county treasurer was not properly controlled. The report also found that minutes of county commission meetings were not signed and did not include details of actions taken or votes on decisions by the commission.

The complete audit report, which received an overall rating of “poor” available here.