Report: State Agencies Rushed Spending at End of 2010, 11

7 years 4 months 1 week ago Wednesday, June 06 2012 Jun 6, 2012 Wednesday, June 06, 2012 6:09:00 PM CDT June 06, 2012 in News
By: Scott Malone
loading

JEFFERSON CITY - State auditor Tom Schweich released a report Wednesday that said some state agencies rushed to spend money at the end of the last two budget years. The report finds the Missouri Department of Corrections to be the leading end-of-year spender, followed by other agencies including the Office of Administration, Office of State Courts Administrator, Department of Mental Health, and Department of Revenue.

Spending near the end of the fiscal year can sometimes raise red flags as agencies sometimes make wasteful expenditures to justify their budgets. However, Schweich clarified in the report that "the audit did not identify instances of wasteful spending," although it did find some larger than normal inventories.

The audit identified end of year purchases that: 

  1. Were expedited and paid before due
  2. Resulted in higher than normal inventory levels
  3. Were charged to the state's General Revenue Fund instead of agency controlled dedicated funds
  4. Were not placed into service in a timely manner

According to the report, the Department of Corrections spent $313,198 on handheld radios and accessories on June 23, 2011, but by Nov. 4 of that year, the radios were not in use yet "because the necessary programming services had not yet been procured."

The audit counted June 30, of both 2010 and 2011, as the end of the fiscal year. The department spent $193,925 on June 26, 2011 to purchase a new washer extractor. Seven months later, the new extractor had not been installed "because its installation required building modifications."

The department also spend nearly half a million dollars from the General Revenue Fund to pay for various Missouri Corrections Integrated System (MOCIS) expenses because the project cost more than expected.

The Department of Corrections also spent over $2 million total on supplies and clothing across May and June 2010 and 2011, which resulted in "higher than normal inventory levels."

The Office of Administration wrote a fiscal year 2010 check for $45,625 on June 23, 2010, but held the check for nearly three months because the project was not finished. "An OA employee e-mailed the vendor stating, 'As we are at the end of the fiscal year, we need to issue a check for this project to ensure that we don't lapse the funding,'" the report said.

"'We will hold this check in our safe until the project is complete,'" the e-mail mentioned in the report said.

The term "lapse" refers to the practice of taking money agencies did not spend that fiscal year, and putting it into a general revenue pool to be spent by the state in the next year.

"The Code of State Regulation does not allow advance payment of goods or services not yet received," the report said.  The code also states that "services provided in the next fiscal year cannot be charged to the prior year appropriation."  

The OA also used General Revenue Fund money to make an advance payment of $288,000 on the State Data Center lease, "which should have been made form a dedicated fund." The office also transferred payments of approximately $1.6 million for a unified communications system from a dedicated fund to the General Revenue Fund.

The Office of Administration also spent $393,000 in June 2010 from the General Revenue Fund for telephones and network components. The telephones "were not installed until September/October in fiscal year 2011."

The OA and Department of Corrections both paid off leases early using General Revenue Fund. The department paid off five leases early, saving the state $12,600 in interest by paying off four but the state didn't save money when the fifth was paid off. The OA paid off a lease early "because General Revenue Fund monies were available; the state realized no interest savings in doing so."

The report noted that the state "does not have specific laws, rules, policies or procedures directly related to year end spending, but the federal government adopted the 'bona fide needs' rule." The federal rule says states appropriations can only be used to "meet legitimate needs arising during the appropriations' fiscal year." 

More News

Grid
List
COLUMBIA - Hackers compromised a mocked-up home page of Gentry Middle School in Columbia, briefly posting the N-word in the... More >>
2 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 9:24:00 PM CDT October 15, 2019 in News
COLUMBIA - The University of Missouri Police Department (MUPD) is investigating a sexual assault that happened over the weekend near... More >>
3 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 7:53:00 PM CDT October 15, 2019 in News
COLUMBIA - Twelve Democratic presidential candidates took stage Tuesday night in Ohio while mid-Missouri viewers watched on television. The debate... More >>
3 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 7:44:00 PM CDT October 15, 2019 in News
COLUMBIA - The University of Missouri released the results Tuesday of a survey on the campus climate surrounding sexual assault... More >>
4 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 7:27:00 PM CDT October 15, 2019 in News
JEFFERSON CITY- Missouri State Auditor Nicole Galloway said Tuesday Missouri is in no shape to handle a recession if financial... More >>
4 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 7:13:00 PM CDT October 15, 2019 in News
COLUMBIA - From ear to ear, it's hard to miss 94-year-old Elmo Winterhalter's smile. "I don't know I've always... More >>
4 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 6:40:00 PM CDT October 15, 2019 in EmVP
COLUMBIA - MU Health Care unveiled a new therapeutic, outdoor activity center for patients Tuesday. The area has a... More >>
7 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 4:14:00 PM CDT October 15, 2019 in News
COLUMBIA - Three people were hospitalized after a crash involving an ambulance shut down two major roads Tuesday afternoon. ... More >>
8 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 3:20:00 PM CDT October 15, 2019 in News
JEFFERSON CITY - Governor Mike Parson signed an executive order Tuesday to create a campaign to educate, warn, and deter... More >>
10 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 1:32:00 PM CDT October 15, 2019 in News
KANSAS CITY (KSHB) — You never know what you'll encounter as a police officer. One day, you may walk... More >>
10 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 12:47:00 PM CDT October 15, 2019 in News
LSU quarterback Joe Burrow, who is on a record-breaking pace during the first half of the season, and Wisconsin running... More >>
11 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 12:10:00 PM CDT October 15, 2019 in Sports
HELENA, Mont. (AP) — Montana authorities say an improvised explosive device blew up in an elementary school playground in Helena.... More >>
12 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 11:07:00 AM CDT October 15, 2019 in News
COLUMBIA - A Moberly man pleaded guilty to a federal charge of aggravated identity theft and will be sentenced in... More >>
12 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 10:44:41 AM CDT October 15, 2019 in News
(CNN) -- When it comes to concussions in high school sports, there is good news and bad news, a new... More >>
17 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 6:29:48 AM CDT October 15, 2019 in News
CEYLANPINAR, Turkey (AP) — Turkey defied growing condemnation from its NATO allies to press ahead with its invasion of northern... More >>
17 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 5:45:00 AM CDT October 15, 2019 in News
KANSAS CITY, Kan. (AP) — The Kansas City T-Bones are officially locked out of their stadium in Kansas City, Kansas.... More >>
18 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 4:48:00 AM CDT October 15, 2019 in News
COLUMBIA - The City of Columbia is trying to slow drivers down on two streets in the downtown area. ... More >>
19 hours ago Tuesday, October 15 2019 Oct 15, 2019 Tuesday, October 15, 2019 3:56:00 AM CDT October 15, 2019 in News
CAMDENTON — Camdenton City Clerk Renee Kingston didn't fall for a traffic violation scam. Kingston said she received two... More >>
1 day ago Monday, October 14 2019 Oct 14, 2019 Monday, October 14, 2019 7:50:00 PM CDT October 14, 2019 in News
Columbia, MO
Broken Clouds 50°
12am 47°
1am 45°
2am 44°
3am 43°