State audit uncovers problems with Lawrence County bidding procedures

(From State Auditor Nicole Galloway)

Missouri State Auditor Nicole Galloway has released an audit of the Lawrence County government. The report raises concerns with county bidding procedures surrounding the county's selection of the company to supply and operate court-required GPS and alcohol monitoring equipment.

The report describes how the county commission selected a company that did not submit the lowest bid to receive the contract. Then the commission voided the contract and following submission of new bid proposals reissued it to the same company for a lower price, but still at a higher cost than the other bidder without adequate explanation as to why the lowest bidder was not selected.

"Government officials must follow the law when managing taxpayer dollars. It's up to the governing body to follow bidding requirements, and to ensure the process is properly documented and conducted in full view of the public," Auditor Galloway said. "This is necessary to secure the best value for citizens, to protect the integrity of the process and to avoid damaging the trust of the people."

There were also questions related to the chosen vendor's lack of experience or references. The owners also operates a bail bonds company at the same address of the electronic monitoring company, which could potentially result in a conflict of interest.

The audit also raises issues within the county collector's office. State law requires the county collector to withhold a 1% commission on property taxes, plus an additional half percent up to $75,000 for the Assessment Fund. The audit found the collector failed to limit the amount withheld, which resulted in a distribution of an additional $32,000 to the Assessment Fund. The withholding amounts must now be recalculated and applicable amounts distributed to local governments, including cities, schools, and special districts.

In addition, the collector did not include approximately $76,000 of railroad and utility taxes collected in November 2015 on the annual settlement document, which led to incorrect amounts being reported.

Lawrence County received an overall performance rating of poor, which means Auditor Galloway will conduct a follow-up review next year. A copy of the complete report is online here.