Saturday, April 16, 2005

Forty credit cards are being used by Barton County officials with no policy governing use of the cards, according to the state audit, which was issued Friday.
The cards are used to buy supplies and and for expenses incurred in transporting prisoners, the audit said. "The county has not adopted formal policies and procedures, such as a policy prohibiting the personal use of county credit cards," the report said.
The auditors suggest the county evaluate the need for so many credit cards and "cancel any cards which are determined unnecessary."
In their reply to the auditors, Barton County Commissioners said County Clerk Bonda Rawlings keeps a list of what cards are assigned to what employees and credit card statements are reviewed by the Commission prior to approval.
The Commission was also criticized for either not seeking bids or not keeping documentation on bids for several big-ticket items, according to the audit. Among those items:
-Emergency 911 radios and tower $88,198
-Computer programming and network service (2003 and 2002) $68,430
-Food for jail (2003 and 2002) $65,993
-Patrol car $19,995
-Prosecuting attorney's video projector and screen $4,559
"The County Commission and County Clerk indicated that bids were solicited for some of these purchases through telephone calls or some items were only available from one vendor; however, documentation of these calls and sole source procurement situations was not maintained. In addition, the County Commission indicated the Emergency 911 radios and tower were advertised for bids; however, documentation of the advertisement was not maintained."
The auditor suggested county officials take bids for all items and maintain proper documentation. In its response, the Commission said that would be done.
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Barton County officials received pay increases that apparently were not authorized by the county's Salary Commission. A total of $7,871 in such raises was documented in the audit, including:
-Eastern Commissioner $1,320
-Western Commissioner $1,320
-Treasurer $2,000
-Assessor $1,231
-Sheriff $2,000
The Salary Commission last met in 1997 and voted for each official to receive the maximum allowable compensation for 1999 and beyond. "The County Clerk indicated it was the salary commission's intention to take salary increases when assessed valuation increases within the county occurred; however, the salary commission minutes do not clearly indicate this was their decision." The Salary Commission did not meet in 1999, 2001, or 2003, the audit said.
The auditors suggested that county officials review the salary increases, get a legal opinion, and consider having the overpayments repaid. It also suggested that Salary Commission meetings reflect all decisions The County Commission's response was that the Salary Commission decisions would be documented. The commissioners did not address the salary repayment issue.
Other items mentioned in the audit included:
-Centralized leave records were not maintained for all county employees. "As a result, two sheriff's office employees were allowed to accumulate annual leave beyond the maximum allowed by the county's personnel policy and another employee was allowed to take annual leave beyond his accumulated balance."
-"The County Commission did not monitor prevailing wages paid during the construction of a county bridge in violation of federal and state laws."
- "The county does not have adequate procedures in place to track federal awards for the preparation of the SEFA." The report did not include expenditures for some of the county's federal grants, the audit said.
-Problems were also reported in the circuit clerk's accounting controls and procedures.
The city of Joplin's four-year legal battle to recover its investment in Ozark Airlines may come to an end this week.
A hearing on whether the city's lawsuit against Ozark should be dismissed is scheduled for 1 p.m. Friday, April 22, in Judge Jon Dermott's courtroom at the Jasper County Courts Building in Joplin.
The city filed the action against Ozark on March 13, 2001, five days after Ozark discontinued its service to Joplin. Bringing the company here had been the crown jewel in the city's efforts to add service to the airport.
Ozark began its flights out of Joplin on May 22, 2000, giving the city a guarantee that it would provide service here for two years. To entice Ozark to offer services in Joplin, the city gave the company $200,000 in Community Development Block Grant funds. Of that amount, $150,000 went toward an incentive for the airline to offer flights to Chicago and Dallas. The other $50,000 established an Ozark station the Joplin Airport.
Ozark's commitment to the city ended less than a year after service began. The company cited lack of money and passengers as its reasons for ending the service.
Not much has happened in the lawsuit during the past couple of years. A complicating factor was Ozark's February 2004 bankruptcy.
The money sought by the city was not the only local money that went down the drain after Ozark's decision to pull out. The Joplin Business and Industrial Development Corporation gave Ozark $100,000.
Columbia Pictures filed a lawsuit this week in U. S. District Court for the Western District of Missouri against a Nevada man who allegedly has been illegally selling pirated copies of "Spider Man 2" over the Internet.
According to court documents, Kenneth Atkins is using an "online media distribution system to distribute to the public" copies of the movie.
The company is asking for an injunction preventing Atkins from making copies of the movie. and is asking that he destroy all copies of Spider Man 2 in his possession.
The lawsuit also asks for actual damages, costs, and attorneys' fees.
The battle over retransmission rights was front and center during Nexstar Broadcasting CEO's presentation at the Wachovia Securities Media and Comcast Conference at the Palace Hotel in New York City April 12.
Nexstar CEO Perry Sook indicated he has Cable One on the run in the Joplin area...an area he treated with disrespect during his presentation. "If you are moving to Joplin, Missouri, tomorrow...not that I would advocate that per se," he said as the investors in the audience chuckled, "you have Cable One and Dish Network."
Even discounting that Dish Network offers lower prices, Sook said, "Dish Network offers the NBC and ABC affiliates. Cable One doesn't. Cable One has decidedly inferior properties."
Cable One has lost 20 percent of its subscribers since Nexstar pulled KSNF and KODE off its system, Sook said.
That number could be more, he added, if Ed Christian, owner of Saga Communications, which has the other two local stations, CBS affiliate KOAM and Fox affiliate KFJX in the Joplin market, would also join the battle to be paid for retransmission rights. If that happened, Sook said, "Cable One would have no local news."
So far, neither Christian nor any other broadcaster has joined Nexstar's lonely battle, but that will change, Sook said, adding that he had a couple of dozen broadcasters who have expressed support for him.
"We think others will join this fight."
Sook said that discussions are ongoing with Cox Communications and Cable One but there is "no resolution yet in sight." Responding to a question from the audience, he said the cable companies have offered to place more advertising on the broadcast stations and better placement on the cable's list.
***
The February Nielsen ratings, which were printed earlier in The Turner Report, were seen as a positive sign by Nexstar Broadcasting, CEO Perry Sook told investors at the Wachavia Conference Wednesday.
The ratings were not down for KODE and KSNF and stations in other markets where Nexstar removed its stations from cable systems, Sook said. "We had good news in our ratings books," adding that people will find a way to watch the local stations even if they are not carried on the cable systems.
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A major battle may be shaping up in Springfield at the end of the year with Nexstar's FOX station KSFX and Mission Broadcasting's CBS affiliate KOLR pitted against cable companies in that market, Nexstar CEO Perry Sook said to investors at the Wachavia Conference.
Sook said the market is almost equally divided between cable and satellite companies. "Why give it (broadcast signals) away for free to one half (cable) when the other half is paying for it. We will attempt to push people over to a service that is sharing value for us."
For nearly four decades, O'Sullivan Industries has been associated with the city of Lamar. But the city's connection with the history, indeed its connection with the man whose name the company bears, seems to have been totally forgotten under the reign of million-dollar CEO Bob Parker.
A company news release issued April 14 celebrating the 50th anniversary of O'Sullivan Industries includes no mention of company founder Tom O'Sullivan.
The celebration for this momentous event was not held in Lamar. It wasn't even held in the company's new corporate headquarters of Roswell, Ga., a suburb of Atlanta, but in O'Sullivan Industries' newly remodeled 21,000 square foot showroom at the Market in High Point, N.C.
"It is indeed gratifying to not only celebrate our proud past but to begin our second half century with a capable management team in place and a solid plan for financial success and growth," Parker says in the news release.
"In the past, O'Sullivan has won numerous industry awards for product design and innovation excellence and we plan to continue that trend in the future."
A federal appeals panel will hear arguments Friday, May 13, in St. Louis on an employee of Nexstar station KARK in Little Rock's claim that her firing was a result of racial discrimination.
Lesa Davis was as production coordinator at KARK, creating graphics and backgrounds for news, weather, and sports, and other station functions, according to court documents.
She had worked on the station's morning program since the 1980s and had been with the station since 1977. In August 2003, she was assigned to the nightshift, which interfered with her other job with UPS, which she had held for more than 25 years.
She had to take a layoff from the company. Ms. Davis claims that white employees who had been with KARK for far less time than she, were allowed to choose reassignment on a seniority basis.
The U. S. District Court in Arkansas found in favor of Nexstar and dismissed the case on Sept. 30, 2004. Ms. Davis filed her appeal on Oct. 21. The appeal claims the U. S. District Court judge committed reversible error by "ignoring overwhelming disputes of material fact" that pointed toward intentional discrimination, by determining that her reassignment to the night shift was not discrimination, and by claiming there was "no genuine issue" for the racial discrimination claim.
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In the continuing quest to tell readers of this blog how much money the executives who run companies with area connections are pulling down, this bit of information was plucked from a proxy filing with the Securities and Exchange Commission Friday.
Ed Christian, CEO of Saga Communications, owner of KOAM and four other television stations, as well as radio stations across the United States, received $512,500 in salary and a bonus of $462,500 for the 2004 fiscal year, for a total of $973,000. The bonus was based on company performance, according to the filing. Saga's net revenue increased by 11 percent in 2003 and operating income increased 9.9 percent during that year. Net income for 2004 was $15.8 million, compared to $13.9 million for the previous year.
Christian's contract with the company expires in March 2009, the filing said. The agreement features health and life insurance premium payments, termination benefits, and a car allowance.
His base salary will increase to $530,000 this year, and if stockholders approve a bonus plan being submitted at the annual meeting next month, he can receive as much as half of that in bonus. However, his employment agreement indicates that the board of directors, at its discretion, can award him additional bonuses.
If Saga is sold, Christian's employment will end, and he will receive "an amount equal to five times the average of his total compensation for the receiving three years, plus an additional amount as is necessary for applicable income taxes related to the payment."
The filing indicates that if that were to happen now, Christian would receive a payout of approximately $4.6 million.

Friday, April 15, 2005

Just one decade after a deputy stole at least $10,000 from the Barton County Sheriff's Department, conditions are ripe for another employee to do the same, according to a state audit of the county released today.
"Controls and procedures need improvement in the sheriff's office," the audit said. The audit was for the years 2002 and 2003, when longtime Sheriff Bill Griffitt was still in charge. Griffitt has since retired and Shannon Higgins was elected to the position in November.
The audit reviewed a long list of problems in the department. "Receipts are not always deposited timely, checks and money orders received are not restrictively endorsed and safeguarded until deposited. Receipt slips are not always properly accounted for, the method of payment is not always indicated on receipt slips and original copies of voided receipt slips are not always maintained.
"Controls and procedures over inmate monies regarding the segregation of duties, following up on old outstanding checks, and preparing listings of open items (liabilities) have not been established.
"In addition, seized property items are not always tagged to identify the property to a specific case, the sheriff's office does not calculate the average costs of meals served to prisoners, and vehicle logs are not maintained for sheriff's office vehicles."
A sizable amount of money goes through the Sheriff's Department, the audit indicated, including monies for civil and criminal process fees, gun permits, bonds, and other miscellaneous receipts totaling $133,371 in 2003 and $130,335 in 2002. An additional $33,000+ in inmate receipts passed through the office during the two-year period. And some of the money was handled in a careless fashion, the audit said.
"Checks and money orders received are not restrictively endorsed immediately upon receipt and are kept in an unlocked desk drawer until deposited."
The thievery that took place when Deputy Susan Beatty worked at the office happened as a result of having only one officer handling the financial duties. The same thing was happening during the time period covered by the audit.
"The duties of receiving, recording, depositing and disbursing inmate monies, and reconciling an inmate bank account are not adequately segregated," the audit said. "One clerk primarily performs all of these duties."
The audit said there was no indication that anyone supervised the employee or conducted any reviews to make sure money was being handled properly. "To safeguard against possible loss or misuse of funds, internal controls should provide reasonable assurance that all transactions are accounted for properly and assets are adequately safeguarded."
Another area in which the sheriff's department fell short, according to the audit, was in keeping track of deputies' mileage. "Vehicle logs are not maintained for the 10 sheriff's vehicles," the report said. More than $29,000 was spent for gas for the cars during the two-year period.
***
The good news for Barton County residents is that apparently procedures are changing under Sheriff Higgins. His response to the audit indicated deposits are now being made daily and the department "is in the process of getting a locked drawer for receipts."
Vehicle logs are now in use, Higgins said, and "we are looking for someone to perform supervisory reviews."
Two Carthage businesses have been cited for exceeding air pollution limits, according to a news release issued today by the Missouri Department of Natural Resources.
Renewable Environmental Solutions, the ConAgra affiliated business that is now being sued by the attorney general for creating a strong odor in Carthage due to alleged environmental violations, and Schreiber Foods were cited by the state agency. Both violations were discovered while state officials were in the city investigating the odor problem, the news release said.
Both companies have 15 days to respond to the notices, according to the news release.
***
A full schedule is on tap for the Carthage R-9 Board of Education when it meets 7 p.m. Monday, April 18, at the Fairview Elementary Multipurpose Room.
Among the items on tap:
-Recognition of the High School Student Council Gold Award
-Report on making the middle grades work by Carmen Lee and Ed Stephens
-Summer school report by Dennis Conrow
-R-9 Foundation update by Danny Lambeth
-Approval of a bid on the school carpentry house
-The board will consider a retirement incentive for teachers.
-Possible approval of the Comprehensive School Improvement Plan for 2005-2006
EaglePicher in Joplin will be able to continue to meet its payroll as the parent company goes through Chapter 11 bankruptcy proceedings.
U. S Bankruptcy Judge J. Vincent Aug signed the order this morning following a hearing in Cincinnati, Ohio. EaglePicher filed for bankruptcy April 13 in U. S. District Court for the Southern District of Ohio.
According to the order, EaglePicher is "authorized, but not directed, to maintain their workers' compensation and employers' liability insurance program.' Banks dealing with EaglePicher are directed to honor and pay all checks written before and after the bankruptcy petition was filed.
A meeting vital to workers at Joplin's EaglePicher plant will take place 10:30 a.m. (CDT) today in U. S. Bankruptcy Court in Cincinnati, Ohio.
At that time, Judge J. Vincent Aug will determine whether the company's proposal to continue paying its workers while going through Chapter 11 bankruptcy will be approved.
EaglePicher is also asking to be allowed to continue paying other worker benefits.
An order is expected to be issued today and sent by Federal Express to EaglePicher, the office of the United States Trustee for the Southern District of Ohio, Western Division, and EaglePicher's 50 largest debtors, among others.
EaglePicher filed for Chapter 11 bankruptcy Wednesday.
***
Former O'Sullivan Industries official Gary Reed Blankenship of Neosho, entered a not guilty plea Thursday in Newton County Circuit Court to charges of possession of pornography and enticement of a child.
Blankenship was arrested following an Internet sting conducted by Diamond police officer Jim Murray, one of several the former police chief has done over the past couple of years.
If Blankenship is guilty, and he hasn't had his day in court yet, it boggles the mind how a supposedly intelligent man could get caught in this kind of sting.
The publicity surrounding Murray's activities and the out-of-state perverts he has nabbed has been plentiful. Apparently, either Blankenship had deluded himself into thinking he would not be caught, or he was so obsessed with underaged girls that he didn't pay attention to anything else, including the news reports of Murray's exploits.
Whatever, there was a certain comfort in knowing that the perverts Murray was putting out of business were all from places like Michigan and Ohio. Knowing they may be next door is a lot scarier.
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Blankenship resigned from his top post at O'Sullivan Industries shortly after his arrest. I was told by numerous company sources right after the arrest that there were O'Sullivan officials who had information that Blankenship was looking at pornographic materials on at least one company computer.
I am curious. Have any steps been taken to deal with the people who knew about this. Did anyone make an effort to pass this information along to higher officials so a stop could be put to Blankenship's activities, and have any changes been made in company computer use policies since the arrest? Drop me a line at rturner229@hotmail.com or leave a post on this blog.
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If anyone is anywhere near the Sane Mule Motorcycle Shop tomorrow at about 3:30 or 3:45 p.m., Natural Disaster will play for about an hour. That will mark the start of a pretty busy next few months for our group, which plays rock and country from the 1950s and 1960s.
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Today's Joplin Globe features an article on page 5A about changes the Joplin R-8 Board of Education is considering in its annual graduation ceremony. The changes have a potential of affecting hundreds of students in a positive way.
Naturally, that story was relegated to an inside page, while the non-story about the shouting match between the family of a newly-elected R-8 board member and a PTO president is placed on page one for the second straight day.
The Globe seems to have a mistaken notion of what is important to R-8 taxpayers, who make up a sizable portion of its readership.