Clinton County missed tax payments and lacked accurate accounting records, audit finds
A state audit has found poor financial controls in Clinton County, with officials paying payroll taxes late, shortchanging the wages of some employees and overpaying others.
County Clerk David Woody didn’t maintain accurate accounting records, according to a report from Missouri State Auditor Nicole Galloway released Thursday.
In one case, a vendor owed $5,435 was paid $71,536.
The audit is the result of an investigation launched by Galloway after calls to the state auditor’s whistleblower hotline in the fall of 2020 raised concerns with the county’s handling of financial matters. The largely rural county, north of Kansas City, is home to about 21,300 residents
“My audit found numerous deficiencies in several areas of county finances, especially in the operation of the County Clerk’s office,” Galloway, Missouri’s sole statewide elected Democrat, said in a statement. “Significant steps are needed to address the problems found in the audit, and we’ve given recommendations to county officials for each of our findings.”
Galloway, who ran unsuccessfully for governor in 2020, urged county officials to implement the recommendations in order to restore public confidence. Galloway’s term expires next year and she isn’t running for re-election.
In a joint statement, Woody and the county commissioners emphasized that have already taken steps to implement financial controls and that the county has ended the past three years “in the black.”
“The auditors revealed to us the vulnerabilities of the county that needed to be addressed,” the statement says. “In addition, the auditors did not find any criminal or fraudulent activity.”
Concerns about Clinton County’s finances date back years. An April 2020 affidavit signed by the county commissioners alleged Woody failed to provide a realistic estimate of revenues for the budget process and failed to resolve Social Security payment issues, the Cameron Citizen-Observer reported at the time.
As of January 31, Clinton County owed the Internal Revenue Service $142,864, according to the audit report. The amount includes “significant penalties and interest,” which are still accruing.
Woody failed to ensure payroll tax forms were filed and payroll taxes were paid on time to the IRS, the audit found. More than $64,000 in penalties have already been assessed.
When the county commission changed the county’s pay cycle from bi-weekly to semi-monthly, Woody failed to properly account for the change, according to the audit, resulting in some employees being underpaid. Others were overpaid.
Woody didn’t enroll some employees in the Local Government Employees Retirement System on time and didn’t ensure retirement contributions withheld from paychecks were accurate, the audit found. The rehiring and hiring dates for some employees were incorrectly reported for some workers.
Individuals in the county clerk’s office between June 2019 and March 2021 made several “duplicate and erroneous” payments to vendors, according to the audit report. That included one vendor who was incorrectly paid more than $71,000. The vendor, who isn’t identified in the report, returned the check and was later paid the correct amount.
“No one was aware of these payment errors until the vendors contacted the county or refunded the overpayments,” the audit report says.
The report includes responses from Woody and the commissioners to the audit. They say a certification form is now being used to ensure timely tax payments and that controls will be developed to ensure paychecks are accurate.
“We will ensure accurate accounting records are prepared,” their joint response says.
This story was originally published May 26, 2022 at 12:37 PM.
