Monday, December 20, 2010

Audit of adjutant general's office uncovers numerous problems

A state audit of the adjutant general's office uncovered numerous problems. The summary of the case provided by the state auditor's office is printed below:

Findings in the audit of the Office of Adjutant General

National Guard Educational Assistance Program

Multiple concerns were noted during our review of the state National Guard Educational Assistance Program (program). The Office of Adjutant General (OAG) has not evaluated the effectiveness of the program since its inception to determine the impact on the recruitment and retention of Missouri National Guardsmen.

 The OAG also consistently failed to follow established guidelines of the program. Program personnel did not always ensure federal educational assistance was paid before state resources were used, assistance payments were not restricted to the maximum number of credit hours allowed, and applications were accepted outside established timeframes.

 In addition, the program's payment and accounts receivable tracking spreadsheets were not accurate and were not reconciled to the Statewide Advantage System for Missouri (SAMII), accounts receivable duties over the program were not adequately segregated, and receipts were not always remitted timely for deposit. Also, meeting minutes were not prepared or retained for some committee meetings held.

Capital Assets

The OAG did not maintain proper records of capital assets or adequately perform periodic inventories and reconciliations to ensure assets were accounted for properly. In addition, the OAG did not comply with policies and procedures to ensure vehicles were used efficiently and effectively, and to document vehicle usage was for official use only.

Readiness Centers

The OAG has not conducted a feasibility study in recent years to ensure the efficient use of its readiness centers statewide. The last feasibility study was performed in 2003 as a result of a prior audit finding. The OAG currently operates 63 individual readiness centers located in various cities and towns statewide. Currently, 18 of the readiness centers are rated in poor condition based on condition rating assessments performed by the Office of Administration (OA).

General Revenue Fund Subsidy

The OAG does not reimburse the state General Revenue Fund for appropriations used for some costs of operating the cafeteria located at the Ike Skelton Training Site (ISTS), and such costs are not included when determining food prices. As a result, the state General Revenue Fund is subsidizing the operation of the OAG cafeteria.

Federal Fund Balance

The OAG has not developed plans to account for a shortage in its federal fund resulting from OA allocations for statewide leasing services performed on behalf of the OAG. For the 3 years ended June 30, 2009, the OA had allocated $92,494 in statewide leasing costs to the OAG federal fund; however, these costs are not allowable for the federal National Guard Military Operations and Maintenance Projects program, which is administered through the OAG federal fund.

Cafeteria Inventory Records

A perpetual inventory of cafeteria items purchased, sold, or consumed, and inventory balances is not maintained. In addition, while OAG personnel perform a physical inventory count at the end of each fiscal year for financial statement purposes, the inventory count is not documented.

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