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BENTON COUNTY TABLE OF CONTENTS FINANCIAL _part6 docx

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Justice Court Judges' Response Judge Griffin: I agree.. Recommendation The Justice Court Clerk should comply with the accounting system prescribed in the manual.. 1972, requires the Chan

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Recommendation The Board of Supervisors should ensure that this agreement is executed and maintained as required by FIRREA Since the requirements of FIRREA have not been met pursuant to an executed collateral security agreement between the county and Union Planters Bank, the county may not have a perfected security interest in the collateral

Board of Supervisors' Response

We are waiting on an Attorney General's opinion on this matter and will get it corrected Sheriff

(Auditor's Note: This finding is on the former Sheriff, A A McMullen.)

Finding Reconciliations of all bank accounts were not performed on a monthly basis

Recommendation The Sheriff should insure that competent personnel reconcile all bank accounts on a monthly basis

Sheriff's Response (Auditor's Note: The Sheriff is no longer in office and was unavailable to respond We attempted to contact him but were unable to locate him.)

Justice Court Judges

(Auditor's Note: This finding is on the judges for the 1992-1996 term as follows: Mark Massengill and James Griffin.)

Finding

No procedures for collection of past due accounts have been established

Recommendation The Justice Court Judges should establish when an account is past due and establish procedures for collection of past due accounts

Justice Court Judges' Response Judge Griffin: I agree We are not a collection agency

Judge Massengill: I have established procedures for past due accounts The clerk has been directed to notify me if payment is not made when ordered

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Justice Court Clerk.

Section 7-7-211, Miss Code Ann (1972), gives the Office of the State Auditor the authority to prescribe accounting systems Separate cash drawers for each clerk and deputy clerk are required

in the Mississippi County Financial Accounting Manual We found no cash drawers were utilized

Recommendation

The Justice Court Clerk should comply with the accounting system prescribed in the manual Justice Court Clerk's Response

I have resigned effective April 30, 1996, and choose not to respond

Weak internal controls existed over the collection and remittance of cash

Recommendation

a Daily deposits should be verified by the clerk

b No adjustments should be made to a prior month once that month is closed and settled

c The Justice Court Clerk should attempt to collect returned checks

d Docket books should be updated or a notation made when an account is paid in full

e Settlements should be remitted by the 25th of each month

Justice Court Clerk's Response

I have resigned effective April 30, 1996, and choose not to respond

Service Organization - Delta Computer Systems, Inc

Finding

The land redemption system allows the deletion of records The system can be used with or without prenumbered original documents

Recommendation

The land redemption system should be modified to allow voiding of receipts but not deletion The counties using the system should use prenumbered originals

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Service Organization's Response All deletions of land redemption records are maintained in a deleted record file which is transparent to the user It is impossible for the computer system to recognize the difference between a prenumbered document and a non-prenumbered document It is the responsibility of the county to use the appropriate forms

B Findings for Independent Auditor's Report on Central Purchasing System and Purchase Clerk Schedules:

Board of Supervisors

(Auditor's Note: This finding on the Board of Supervisors is on the members of the former board for the 1992-1996 term as follows: Kenneth Leak, John Edward Peeler, Eugene Steward, O A Massengill and Stanley Wilkerson.)

Finding Section 31-7-103, Miss Code Ann (1972), states a purchase order is not "required for the purchase of any item or services with an acquisition cost of not more than one hundred dollars ($100) in the aggregate; however, the invoice for every such purchase shall be signed by the department head or his or her designee " The Board of Supervisors has not appointed any designees in the official minutes of the board We found numerous invoices signed by persons other than the supervisor

Recommendation The invoice or receipt should be signed by the person making the purchase This person should

be the supervisor or his designee whose appointment is required to be recorded in the official minutes of the board

Board of Supervisors' Response

We will get this corrected

Receiving Clerk

Finding Section 31-7-109, Miss Code Ann (1972), states that a receiving report should be prepared by the person receiving the materials We discovered that personnel not receiving the materials were signing the receiving reports

Recommendation The Receiving Clerk or an assistant who actually receives the materials should prepare the receiving report

Receiving Clerk's Response

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C Findings for Independent Auditor's Report on Compliance with State Laws and Regulations:

Chancery Clerk

Section 7-7-211, Miss Code Ann (1972), gives the Office of the State Auditor the authority to prescribe accounting systems All revenues should be recorded in the county's financial records During the audited year, some interest income was not recorded on the county's books

Recommendation The Chancery Clerk should properly record all revenues as prescribed in the Mississippi County Financial Accounting Manual

Chancery Clerk's Response This has been corrected

Section 19-13-43, Miss Code Ann (1972), requires funds to have cash available before checks are written Checks were written on a county fund which did not have a sufficient cash balance Recommendation

The Chancery Clerk should insure that no checks are written on funds when cash is not available Chancery Clerk's Response

This has been corrected

Section 27-35-519, Miss Code Ann (1972), requires the Chancery Clerk, as the clerk of the Board of Supervisors, to distribute the proceeds of the railcar tax to the schools and other taxing districts The Chancery Clerk deposited the entire proceeds of the railcar tax received from the state into the General Fund without distributing to the schools and other taxing districts their apportioned amount

Recommendation The Chancery Clerk should apportion or distribute the proceeds of the railcar tax to the schools and other taxing districts in proportion to the number of miles of railroad in the taxing districts

to the number of miles of railroad in the entire county

Chancery Clerk’s Response

I will settle these funds as required

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Tax Collector.

Section 27-49-1, Miss Code Ann (1972), requires the Tax Collector to present to the Board of Supervisors at its meeting on the first Monday of October in each year a report of all insolvent and delinquent taxpayers in the county, with the amount due from each The required report was not presented to the board

Recommendation

The Tax Collector should present to the Board of Supervisors the report of insolvent and

delinquent taxpayers

Tax Collector's Response

I will comply

Sections 27-49-1 and 27-49-9, Miss Code Ann (1972), specify the actions to be taken for the sale of property, real or personal, of business taxpayers who are either insolvent or delinquent

We found no evidence that the Tax Collector seized and sold property in order to collect

delinquent business taxes Further, we discovered that some businesses on the insolvency list were still operating The list of delinquent taxpayers prepared by the Tax Collector included three businesses owned by Supervisor James Griffin (for the 1996-2000 term), one person contracting with the county to provide meals to the jail, and two other going concerns

Recommendation

The Tax Collector should make a concerted effort to collect delinquent business taxes through following the procedures specified in the law pertaining to the seizure and sale of property Tax Collector's Response

I will comply

Sheriff

(Auditor's Note: These findings are on the former Sheriff, A A McMullen.)

The jail docket had an unusually large amount of "indigent" persons released from jail without paying the necessary fees We found no documentation for the determination of indigence by the Sheriff nor any authorization from judges to release these people Further, one of the persons released as an "indigent" was a county employee who could not be considered indigent This resulted in a loss of revenue for the county and for the state

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Sheriff's Response

(Auditor's Note: The Sheriff is no longer in office and was unavailable to respond We

attempted to contact him but were unable to locate him.)

Section 7-7-211, Miss Code Ann (1972), gives the Office of the State Auditor the authority to prescribe accounting systems The Mississippi County Financial Accounting Manual requires that petty cash funds may only be used for unusual and non-recurring expenditures and not to circumvent the central purchasing system We found multiple instances of expenditures which were neither unusual nor non-recurring

Recommendation

The Sheriff should only use the petty cash fund for the necessary unusual and non-recurring expenditures

Sheriff's Response

(Auditor's Note: The Sheriff is no longer in office and was unavailable to respond We

attempted to contact him but were unable to locate him.)

Justice Court Judges

(Auditor's Note: These findings are on the judges for the 1992-1996 term as follows: Mark Massengill and James Griffin.)

Section 9-11-11, Miss Code Ann (1972), requires the Justice Court Judges to sign each record upon disposition of the case Many case records were not signed

Recommendation

The Justice Court Judges should sign the case records

Justice Court Judges' Response

Judge Griffin: I sign the order of sentence in the case files

Judge Massengill: I keep my dockets up-to-date by initialing any case record marked "pending" and signing my name to all others The dockets which were unsigned had been printed lately, and I have not had the opportunity to sign them

Section 63-1-55, Miss Code Ann (1972), requires the trial judge to approve a minor to

successfully complete a defensive driving course as a condition of a suspension of license The costs of court and penalty assessment for driver education and training program may be imposed within the discretion of the court We found the Justice Court Clerk, rather than the Justice

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Recommendation The Justice Court Judge should make the referral to driver education and training courses and charge assessments as required

Justice Court Judges' Response

Judge Griffin: I was not aware that the clerk had been handling these cases

Judge Massengill: I was not aware that the clerk had been handling these cases I have since talked to her and she is aware that only the judges can make this referral

Justice Court Clerk

Section 25-1-72, Miss Code Ann (1972), requires the Justice Court Clerk to deposit funds into the county depository on the day they are collected or on the next business day thereafter All funds were not deposited as prescribed

Recommendation The Justice Court Clerk should deposit the funds collected as required

Justice Court Clerk's Response

I have resigned effective April 30, 1996, and choose not to respond

Section 63-1-55, Miss Code Ann (1972), requires the trial judge to approve a minor to successfully complete a defensive driving course as a condition of a suspension of their driver's license The costs of court and a penalty assessment for driver education and training program

my be imposed within the discretion of the court We found the Justice Court Clerk, rather than the judge, was approving the referral to defensive driving courses for minors Also, no state assessments were collected on these cases

Recommendation The Justice Court Clerk should allow the judges to make the referral to driver education and training courses and charge assessments as required

Justice Court Clerk's Response

I have resigned effective April 30, 1996, and choose not to respond

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3 Finding

Section 9-11-27, Miss Code Ann (1972), requires all orders from the Justice Court Judge to the Clerk of the Justice Court to be written We found dismissed cases without the judge's order Recommendation

The Justice Court Clerk should not dismiss cases without the written order of dismissal from the Justice Court Judge

Justice Court Clerk's Response

I have not dismissed tickets on my own Apparently the judge’s orders were misplaced in error

Section 9-11-19, Miss Code Ann (1972), requires the Justice Court Clerk to file with the Clerk

of the Board of Supervisors at least semiannually a list showing all delinquent fines and

penalties, giving the date, amount and names of persons from whom these amounts are due We found the list to be incomplete due to inaccurate recording of dispositions of cases by the clerk Recommendation

The Justice Court Clerk should review all uniform case records to ascertain the accuracy of information entered and fines and penalties imposed All of these delinquent fines should be reported to the Clerk of the Board of Supervisors

Justice Court Clerk's Response

I have resigned effective April 30, 1996, and choose not to respond

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