22nd Judicial Circuit Court Audit

Susan Montee, JD, CPA
Missouri State Auditor
Twenty-Second Judicial
Circuit
City of St. Louis
June 2010 auditor.mo.gov

Report No. 2010-69
June 2010

YELLOW SHEET
Findings in the audit of the Twenty-Second Judicial Circuit, City of St. Louis
Circuit Court Receipts The independent review by the Circuit Clerk's Bookkeeping section is
inadequate to ensure manual receipt slips are properly posted to the Justice
Information System (JIS) and subsequently deposited. Manual receipt slips
are not issued in numerical sequence which causes difficulties in accounting
for all receipt slips. In addition, some pages of the receipt ledger are not
submitted to the Bookkeeping section for review and verification, the
method of payment and/or receipt amount is not recorded on the receipt
ledger for some receipt slips, and original copies of some voided manual
receipt slips are not maintained. There does not appear to be any statutory
authority for the daily record fee assessed and collected on each civil case.
The Circuit Clerk's office has not assessed witness fees for cases where the
defendant is found guilty.
Justice Information System The JIS liabilities list included $265,048 in unidentified amounts. In
Account addition, the Circuit Clerk has not adequately reviewed the status of old
cases on the liabilities list.
Old Circuit Fee Accounts The Circuit Clerk needs to improve procedures related to old circuit fee
bank accounts and investments. The Circuit Clerk's old fee accounts have
had minimal activity since June 2006. Although the Circuit Clerk's office
has reduced the reconciled balances by approximately $5 million since June
2002, the Circuit Clerk still has approximately $7.6 million in old bank
accounts and investments. Our prior audits revealed numerous differences
between the old computer system and manual case files. The Circuit Clerk
needs to improve procedures related to bank reconciliations for the old bank
accounts. Bank reconciliation differences and adjustments have not been
investigated and corrected on a timely basis to ensure bank activity and
accounting records are in agreement.
Court Ordered Bank Accounts There are several old court ordered bank accounts on which no action has
been taken. The December 31, 2009, court ordered bank account list
includes 16 cases totaling $1,551,786. Eight of the cases originated prior to
1999, with some cases dating as far back as 1977.
Circuit Clerk's Disbursements The Circuit Clerk does not have a formal procurement policy. We identified
disbursements from the Circuit Clerk's Special Interest Fund made without
soliciting competitive bids/proposals or documenting sole source providers,
including accounting services and a docket prioritization system.
Pre-Trial Release The Pre-Trial Release (PTR) office needs to improve policies and
procedures related to the collection of bonds. Some bond amounts and types
(i.e., cash, property, or surety) are not properly authorized or authorization
for the bond accepted is not adequately documented. Procedures and
controls for monies collected during non-business hours need improvement.
There is no independent review to ensure receipts are properly transmitted
June 2010

YELLOW SHEET
to the Circuit Clerk's office, and the PTR office does not account for the
numerical sequence of receipt slips issued. In addition, receipt slips are not
issued in numerical sequence, which causes difficulties in accounting for all
receipt slips.
Probate Division Improvement is needed in Probate Division policies and procedures related
to manual receipt slips issued and unidentified monies held. There is no
independent review to ensure manual receipt slips are properly entered into
the JIS and subsequently deposited. In addition, original copies of some
voided manual receipt slips were not maintained. While bank reconciliations
are prepared and reconciled to lists of liabilities, the JIS account has an
unidentified balance of $8,124.
Juvenile Division Controls over receipts initially collected in field offices need improvement.
The Juvenile Division is unable to ensure all money orders received by the
field offices are transmitted to the Restitution Office. Unnumbered payment
forms are issued when money orders are received by field offices and a
receipt log is not maintained. Money orders are not restrictively endorsed
immediately upon receipt.
All reports are available on our Web site: auditor.mo.gov

Twenty-Second Judicial Circuit
City of St. Louis
Table of Contents
State Auditor's Report 2
Management Advisory
Report - State Auditor's 1. Circuit Court Receipts ............................................................................ 4
2. Justice Information System Account ...................................................... 7
Findings 3. Old Circuit Fee Accounts ....................................................................... 9
4. Court Ordered Bank Accounts ............................................................. 12
5. Circuit Clerk's Disbursements .............................................................. 14
6. Pre-Trial Release .................................................................................. 15
7. Probate Division ................................................................................... 20
8. Juvenile Division .................................................................................. 21
Organization and Statistical 24

Information
1
SUSAN MONTEE, JD, CPA
Presiding Judge and Court en banc

and
Circuit Clerk of the
Twenty-Second Judicial Circuit
City of St. Louis, Missouri
We have audited certain operations of the Twenty-Second Judicial Circuit, City of St. Louis. The city
engaged KPMG LLP, Certified Public Accountants (CPAs), to audit the city's financial statements,
including the judicial circuit's divisions, for the years ended June 30, 2009 and 2008. To minimize
duplication of effort, we reviewed the CPA firm's audit report. The scope of our audit included, but was
not necessarily limited to, the 2 years ended June 30, 2009. The objectives of our audit were to:
1. Evaluate the judicial circuit's internal controls over significant financial functions such as
receipts.
2. Evaluate the judicial circuit's compliance with certain legal provisions.
Our methodology included reviewing written policies and procedures, financial records, and other
pertinent documents; interviewing various personnel of the judicial circuit, as well as certain external
parties; and testing selected transactions.
We obtained an understanding of internal controls that are significant within the context of the audit
objectives and assessed whether such controls have been properly designed and placed in operation.
However, providing an opinion on the effectiveness of internal controls was not an objective of our audit
and accordingly, we do not express such an opinion.
We obtained an understanding of legal provisions that are significant within the context of the audit
objectives, and we assessed the risk that illegal acts, including fraud, and violations of other legal
provisions could occur. Based on that risk assessment, we designed and performed procedures to provide
reasonable assurance of detecting instances of noncompliance significant to those provisions. However,
providing an opinion on compliance with those provisions was not an objective of our audit and
accordingly, we do not express such an opinion. Abuse, which refers to behavior that is deficient or
improper when compared with behavior that a prudent person would consider reasonable and necessary
given the facts and circumstances, does not necessarily involve noncompliance with legal provisions.
Because the determination of abuse is subjective, our audit is not required to provide reasonable assurance
of detecting abuse.
2
We conducted our audit in accordance with the standards applicable to performance audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform our audit to obtain sufficient, appropriate evidence to provide a
reasonable basis for our findings and conclusions based on our audit objectives. We believe that the
evidence obtained provides such a basis.
The accompanying Organization and Statistical Information is presented for informational purposes. This
information was obtained from the judicial circuit's management, Office of State Courts Administrator,
and City of St. Louis and was not subjected to the procedures applied in our audit of the judicial circuit.
The accompanying Management Advisory Report presents our findings arising from our audit of the
Twenty-Second Judicial Circuit, City of St. Louis.

State Auditor
The following auditors participated in the preparation of this report:
Director of Audits: Alice M. Fast, CPA, CGFM, CIA

Audit Manager: Debra S. Lewis, CPA
In-Charge Auditor: Julie Vollmer, CPA
Audit Staff: Tina Gildehaus, M.Acct.
Jay Dowell
3
Twenty--Second
T d Judicia
Tw
al Circuuit
wenty-Secondd Judicial Cirrcuit
C of St.
City S Louiis Ciity of St. Louuis
M
Management A
Advisory Repoort - State Auuditor's Findinngs
M
Managem ment Advisory
A y Reporrt - Statee Auditoor's Finndings
Thhe Circuit Cllerk's proceduures related to
t manual recceipt slips annd witness
1. Circuiit Court fees need imprrovement. In addition,
a the Circuit Courtt needs to revview court
Receip
pts coosts assessed.. The Circuitt Clerk proceesses approxximately $23..3 million
annnually in monies receiveed for civil anda criminal case fees, fines,
f and
boonds.
1.1 Manual receipt sliips Manual receiptt slip proceduures and contrrols need imprrovement. Reeceipts are
M
noormally posteed to the Juustice Inform mation Systeem (JIS) as received;
hoowever, manuual one-writee receipt slipps are issuedd when the computer
syystem is not available.
a Thee following cooncerns were noted duringg a review
off manual receipt slips issueed by the Circcuit Clerk's offfice:
• The indepeendent review w by the Circcuit Clerk's Bookkeeping

B section is
inadequate to ensure maanual receipt slips are propperly posted to the JIS
and subseqquently deposited. Althouggh the Cashierr section is suupposed to
submit manual receipt ledger sheetss to the Bookkkeeping secttion to be
accounted for numeriically and traced to the t JIS sysstem, the
Bookkeeping section dooes not ensure all pages off the receipt ledger
l are
submitted and
a some pagges are not subbmitted. In adddition, manuual receipt
slips are noot issued in nuumerical sequuence, and the Circuit Clerrk's office
does not acccount for thee numerical seequence of alll manual receeipt slips.
After we discussed
d theese concerns with Circuitt Clerk persoonnel, the
Circuit Cleerk's office performed
p a review to account
a for the
t 1,768
manual recceipt slip num mbers which appeared to be used from m June 7,
2007, through March 12, 1 2010. Thhe Circuit Cllerk's office could not
account foor 413 manuaal receipt sliips during thhe review peeriod. The
Circuit Cleerk's office allso discovereed 134 entriess on the receipt ledger
where the receipt numbber was not recorded (allthough the court c case
number orr party was recorded).
r Thhe Circuit Cllerk's office could not
readily dettermine the manual receipt slip num mber for these entries;
therefore, they could represent soome of the 413 noted above. a In
addition, soome of the 413
4 receipt sliips could havve been issueed prior to
the time peeriod revieweed, since mannual receipt sllips were nott issued in
numerical sequence.
s
• The methood of paymeent (i.e., cashh, check, or money ordeer) and/or

receipt amoount is not reecorded on thhe one-write receipt
r ledgerr for some
receipt slipps.
• Original coopies of somee voided manuual receipt slipps are not maaintained.
Too adequately safeguard recceipts and redduce the risk of

o loss, theft, or misuse
off funds, the Circuit Cleerk's office should propperly accountt for the
nuumerical sequuence of mannual receipt slips
s issued and
a ensure all a monies
coollected are recorded
r in thhe JIS on a timely
t basis. The compossition and
4
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am
mount of mannual receipt sllips should bee individuallyy compared too amounts
recorded in thhe JIS. In adddition, voideed manual reeceipt slips should
s be
prroperly mutilaated and retainned.
1.2 Court coosts Thhere does nott appear to bee any statutorry authority for
f the daily record
r fee
asssessed and coollected on eaach civil casee. The Court En
E Banc adoppted Local
Coourt Rule 5.22. authorizingg the Circuit Clerk to collect a $2 Dailly Record
fee on each ciivil case. Durring the yearr ended June 30, 2009, thhe Circuit
Cllerk collectedd Daily Recorrd fees of $57,543 and dissbursed the feesf to the
Daaily Record publication
p that publishes various
v noticees for the courrt.
Thhe local courrt rule indicattes the authoority for this fee is by ordder of the
coourt. To ensuure compliannce with statee law, the Court C En Bannc should
review statutorry authority foor all court coosts currently assessed.
1.3 Witnesss fees Thhe Circuit Cleerk's office has

h not assessed witness feees for cases where
w the
deefendant is foound guilty. Section
S 491.2280, RSMo, provides
p witnnesses are
alllowed to be paid
p $25 per day d plus mileaage for their services.
s
Thhe state or deefendant is liaable to the cityy for the witnness fees depeending on
thhe sentence. The
T state is liable for witness
w fees when
w the deffendant is
seentenced to im
mprisonment in i the state Department
D off Corrections. For other
caases in whichh the defendaant is found guilty,
g the deefendant is liiable. The
Ciircuit Clerk's office approvves witness feefe vouchers whichw are theen paid by
thhe city. The Circuit
C Clerk's office indicaated witness feesf cannot bee assessed
wiith other feess because his office has too wait for doccumentation of o witness
fees paid by the t City Com mptroller. Thhe city paid witness fees totaling
$119,549 and $21,831
$ durinng the yearss ended Junee 30, 2009 and a 2008,
respectively.
Seection 483.5550, RSMo, provides

p the Circuit Clerrk should chharge and
coollect every court
c cost to which the cllerk is entitleed by law. Thhe Circuit
Cllerk is responnsible for preeparing and submitting cost bills to thee state for
reimbursementt of certain costs in criminal cases whhere the state has been
rendered liablee pursuant to Section 221.1105, RSMo. To T ensure revvenues are
m
maximized, thee Circuit Clerrk should impplement proceedures to tracck and bill
alll reimbursablle court costs..
R
Recomme
endationss 1.1 The Ciircuit Clerk account for the t numericaal sequence of o manual
receiptt slips to ensuure they are reecorded in the JIS on a tim
mely basis
and maaintain originnal copies of alla voided recceipt slips. Thhe Circuit
Clerk should also ensure the method of payment andd amount
receiveed are recordeed on the one--write receiptt ledger.
1.2 The Court

C En Baanc review court costs and fees to
t ensure
compliiance with staate law.
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1.3 The Ciircuit Clerk ensure

e witnesss fees are asssessed to the defendant
or billeed to the statee on a timely basis.
b
Auditee's Responsse Thhe Circuit Cleerk provided the

t followingg written respoonses:
1.1 We agrree. In Marchh 2010, follow wing an inquuiry by the Auuditor, the
office'ss Bookkeepingg Departmennt implementeed proceduress to track
and acccount for maanual receiptss issued when JIS is not available.
a
This isssue arose affter we begann using JIS, the state creeated and
controllled computeer software system. JISS's reliabilityy created
instancces where it i was neceessary to isssue manual receipts,
especiaally early afteer its implemeentation. Addditionally, wee routinely
issued manual receeipts on the last businesss day of the month in
order to facilitate "closing the books" withhin the suggeested time
frame.
The Caashier's Office will ensuree all voided reeceipts are maintained
m
and alll necessary inf
nformation is properly
p documented on thhe receipt
slip. Moreover,
M we non longer "cloose the bookss" before the end of the
last buusiness day off the month, thhus reducing the number ofo manual
receiptts generated.
Even thhough there isi no finding of

o any mishanndling of fundds, we are
reviewing each of thhe 1,768 mannual receipt sllips issued. Our
O review
traces the manual receipts
r to JIIS records annd the bank account
a to
ensure the receipt was
w properlyy accounted for fo in each. ToT date of
this ressponse, we haave accountedd for 1,577 manual receiptt slips and
every receipt
r has beeen accountedd for in JIS annd in the bankk account.
It shouuld be noted that

t the transsactions in quuestion amouunt to less
than 1% % of the apprroximate 1900,870 receiptss we issued during
d this
audit period.
p
1.3 We agrree, and havve establishedd procedures to assess witness fees

against the defendannt in cases whhere the defenndant was fouund guilty
but didd not go to prrison, and asssess and bill the
t state wheen a guilty
defenddant is sent to prison, thhus triggerinng the City'ss right of
reimbuursement for witness
w fees.
We knoow the state collectable witness

w fees referenced
r in the audit
are overstated, duee to court cossts being waived, or the defendant
not being sent to prison.
p w review eaach criminal case that
We will
went too trial, thus incurring
i the possibility of a state reimmbursable
witnesss fee. We will determine the actual amount
a of witness fees
compennsable and recover the feees from the state,
s even thhough JIS
does not
n currently have the cap apability of performing
p thhis billing
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functioon. Thereafterr, we will reeview all rem

maining casess where a
witnesss fee can be assessed
a and assess
a againsst the defendaant.
Thhe Presiding Judge

J providded the following written reesponse:
1.2 The Prresiding Judgge has referrred this issuee to the Court's Rules
Commiittee to revieew the validitty of the proovision in Loccal Court
Rule 5 that relatess to the colleection of thiss fee and repport their
findinggs to the Courrt en banc at its
i next meetinng.
Ciircuit Clerk procedures

p o liabilities in the JIS
rellated to unideentified and old
2 Justice Inform
2. mation Acccount need improvemennt. The JIS Account A was opened in Juune 2006,
System
m Account whhen the Circuuit Clerk begaan using the JIS.
J The JIS Account
A is ussed for all
caase fees, bondds, restitutionn, etc., unless a Judge orrders monies held in a
sppecial court ordered bank account.
a At June
J 30, 20099, the JIS liabbilities list
totaled approxiimately $6.4 million.
m
2.1 Unidenttified liabillities Thhe JIS liabillities list inccluded the following
f unidentified am
mounts at
Juune 30, 2009:
Unidentified Liiability
U J
June 30, 2009
Child supp
port $ 2
214,264
Municipal 5,652
Unclaimedd property 45,132
Total $ 2
265,048
Thhe Circuit Clerk's

C office indicated thhe Child suppport, Municcipal, and
Unnclaimed Prooperty accounnts were transsferred to thee JIS Accounnt to close
old inactive baank accountss and docum mentation from m prior compputer and
m
manual system
ms would neeed to be revviewed to ideentify the am mounts to
sppecific cases. There has beeen little or noo activity in thhese accountss since the
im
mplementationn of the JIS inn June 2006.
A detailed list of liabilities should be maaintained whiich can be ideentified to

sppecific cases or court costs. The Cirrcuit Clerk should investtigate any
unnidentified liabilities, andd if proper disposition
d c
cannot be deetermined,
dispose of themm in accordannce with state law.
2.2 Old liabbilities Thhe Circuit Cleerk has not addequately revviewed the staatus of old casses on the
liaabilities list. The followinng concerns were
w noted during
d a reviiew of 30
caases included on the JIS liaabilities list:
• Seven casees reviewed, totaling

t $2,8666, should haave been turneed over to
the State Treasurer
T Unnclaimed Propperty Divisioon since the defendant
could not be
b located. One
O case wass closed in February
F 19977. After a
7
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year, the Circuit Clerrk's office normally

n disbburses moniees to the
Unclaimedd Property Division
D if unable
u to loocate the apppropriate
individual; however, it appears
a some cases are oveerlooked.
• Seven casees reviewed, totaling $1177,570, indicatted the Circuuit Clerk's

office was waiting on further
fu clarificcation from thhe court. Howwever, the
Circuit Cleerk's office has
h not recenttly contactedd the Judges or o Circuit
Attorney too request claarification onn these liabiliities. In one case, the
Circuit Cleerk's office wasw waiting for a court order to dispose the
T last court order was reeceived in Junne 2003, indicating the
monies. The
monies shoould be heldd. There was no documenntation to inddicate the
Circuit Cleerk had requested further court
c directivee. No moniess had been
received onn this case sinnce January 2008.
• Two cases reviewed, wiith refunds paayable totalingg $93, were not
n paid to
the Unclaim med Propertyy Division beecause the couurt fees had been
b paid
by an attorney. When fees paid byy attorneys arre to be refuunded, the
Circuit Cllerk's office indicated coontinued atteempts to coontact the
attorney arre made, insteead of turningg the monies over to the Unclaimed
U
Property Division.
D Howwever, the Circcuit Clerk's offfice does nott maintain
documentaation of attem mpts to conttact the attorneys. Circuuit Clerk's
office persoonnel indicatted the moniees could be duue to the defeendant but
were paid through the attorney; therrefore, the offfice does noot turn the
monies ovver to the Unnclaimed Prooperty Divisioon. Because liabilities
must be inddividually revviewed to dettermine the sttatus, we were not able
to readily determine
d thee amount of monies
m held because court fees were
paid by an attorney.
Thhe failure to t routinely review liabbilities and disburse monies m as

apppropriate, deeprives the sttate, city, or others the usse of those monies.
m A
prrocedure to routinely review liabbilities and make more timely
disbursements should be implemented
i . If disburseement is posssible but
prroper payees cannot be located, thee monies shhould be dissposed in
acccordance witth state law.
Recommeendationss Thhe Circuit Cleerk:
2.1 Conduct a review of unidentifi fied JIS liability accountss. Once a

detailed liabilities liist is establishhed the Circuuit Clerk shouuld review
the listt and disbursee monies as appropriate.
a A monies remaining
Any r
unidenntified should be disposed of o in accordannce with statee law.
2.2 Routinnely review liabilities

l andd work with the Court Enn Banc to
disbursse monies as appropriate..
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2.1 We agrree. The childd support andd municipal money

m cited inn the audit
is partt of the monney collectedd during preevious adminnistration,
which is further discussed beelow. Previoous audits have h well
documented that thee previous addministrationss’ financial reecords are
not reeliable. Like with other such moneey held duee to past
adminiistrations wee will continuue to work to determinee the true
ownersship of the fuunds and retuurn it to the true owner. When we
reach a point wheree there is no practicable
p hoope to return the funds
to its true owner, we will trannsfer the baalance to thee state as
unclaim
med funds.
Due too manpower issues

i we conntinue to firstt work cases where we
have thhe highest proobability of reeturning the funds
f to its true owner.
As mannpower permits, we will workw the remaaining cases and make
a deterrmination as to its true owners
o as sooon as practiicable. As
noted in this auddit, our woork in this area has generated g
disburssements of $55 Million dollaars to the truee owners.
2.2 We aggree to reviiew outstandding liabilitiies to deterrmine the

approppriate disposiition of fundss being held on closed caases. This
processs is made moore difficult and
a time-connsuming as thhe ad hoc
reportss we generatte are outsidde JIS progrramming, andd require
manpower to generrate and worrk the reportss. In additionn, we will
work with
w the courtt and the Circcuit Attorney''s Office to reesolve any
issues.
Thhe Circuit Cleerk needs to improve

i procedures relatedd to five old circuit
c fee
3 Old Circuit Feee
3. baank accounts and investm ments. The Coompany, Genneral, and Garrnishment
Accou
unts acccounts are comprised of o civil, criiminal, and garnishmentt monies,
respectively. The
T designation of I and II representss monies recceived for
caases filed befo
fore or after January 1, 19999, (when thee current Circcuit Clerk
took office), reespectively, and
a before thee implementaation of the JIIS in June
20006. The Circcuit Clerk alsso transferredd some moniees from the Company
C I
acccount to invvestment acccounts. These old circuit fee and innvestment
acccounts had thhe following reconciled
r baalances at June 30, 2009:
Recconciled Balannce
Accountt J
June 30, 2009
Company I $ 3
304,187
Company II 67,761
General I 3
389,812
General III 1
115,859
Garnishmeent (
(40,035)
Investmennts 6,8
800,000
Total $ 7,6
637,584
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3.1 Inactivee accounts Thhe Circuit Cllerk's old fee accounts havve had minim mal activity since
s June
20006. Althouggh the Circuuit Clerk's office
o has reeduced the reconciled
r
baalances by appproximately $5 million since
s June 20002 (Report No. N 2003-
0223, Twenty-SSecond Judiciial Circuit, Circuit
C Clerkk's Office), thhe Circuit
Cllerk still has approximaately $7.6 million
m in oldd bank accoounts and
innvestments. AsA noted in our prior reeports, the liabilities listts for the
acccounts openeed before Jannuary 1999 are a incomplette and inaccuurate. The
Ciircuit Clerk inndicated he does
d not want to dispose off these monies until his
mpted to idenntify accurate liabilities on each case. Thhe Circuit
offfice has attem
Cllerk had one contract empployee who exclusively
e w
worked to ideentify and
reduce the liabbilities of thhese accountss until the ennd of 2008; however,
cuurrently the Circuit
C Clerk only
o has one employee whho spends a portionp of
his time workinng on the old accounts.
Ouur prior audits revealed numerous

n diffferences betwween the old computer
syystem and manual
m case files.
f The diffferences inccluded fees shown
s on
liaabilities lists that had been disbursed, individual liaabilities listedd that did
noot agree to finnancial recordds, negative balances
b on thhe lists, and soome types
off fees collected that werre not includded on the lists. In adddition, the
liaabilities lists for the old acccounts were not adjustedd for transferss from old
baank accounts to t the JIS bannk account.
Maintaining olld inactive acccounts increeases the riskk of theft or misuse

M m of
fuunds and deprrives the statee, city, and others
o the usee of those moonies. The
Ciircuit Clerk should
s attemppt to identify and distributee the funds held
h in old
innactive bank and investm ment accountts, dispose of o any uncllaimed or
unnidentified funnds in accorddance with staate law, and cllose the accouunts.
3.2 Bank reeconciliatio

ons Thhe Circuit Clerk needss to improove procedurres related to bank
reconciliations for old bank accounts.
Differencces and adjustments Thhe following differences and adjustm ments were nooted on bankk account
reconciliations for the old acccounts at Junne 30, 2009:
• Differencess totaling $3,,782,654 werre added to book

b balancess on bank
reconciliatiions. These differences were noted and adjusted on the
January 20006 and priorr bank reconnciliations. Circuit Clerk personnel
t differences were beccause the bannk accounts were not
indicated the
previously properly reeconciled to book balancces. After thhe Circuit
Clerk's offfice began reconciling
r too the book balance propperly, the
differencess remained constant
c eachh month. Ciircuit Clerk personnel
indicated the
t differencees could be caused
c by fees, bonds, annd checks
which werre not postedd to the old computer sysstem, or for unknown
reasons.
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• Numerous miscellaneoous reconcilling items, (a net am mount of

$1,290,1077), were shhown on bank b reconciiliations. Thhe oldest
miscellaneoous reconciliing item datees back to 2002. Examplles of the
miscellaneoous reconciliing items weere deposit errors,
e checkk charges,
wire transffers, and interest transfers.
• When the Circuit Clerkk's office trannsferred somee monies from m the old
bank accouunts to the JIS
J bank acccount in 2006, liabilities were not
corrected on
o the old commputer system
m. As a resultt, reconcilingg items for
transfers frrom the old bank
b accountts to the JIS bank accountt, totaling
$2,053,2611, were shownn on bank reconciliations.
Baank reconciliation differennces and adjuustments shouuld be investigated and

coorrected on a timely basis to ensure baank activity and
a accountinng records
arre in agreemennt.
Old outsttanding checcks Foollow up on outstanding

o c
checks has noot been perfoormed for the old bank
acccounts. At June
J 30, 20009, 4,227 chhecks totalingg $232,983 had been
ouutstanding forr over one yeear. The oldeest outstandinng check datees back to
19999.
Foollow up onn outstandingg checks is necessary to t ensure monies are

apppropriately disbursed
d to thhe payee or ass otherwise prrovided by sttate law.
R
Recomme
endationss Thhe Circuit Cleerk:
3.1 Attemppt to identifyy and distribuute the funds held in oldd inactive
accounnts, dispose of any uncclaimed or unidentified
u funds in
accordance with state law, and cllose the accouunts.
3.2 Ensuree bank recoonciliation differences

d a
and adjustm
ments are
investigated and coorrected on a timely bassis. The Circcuit Clerk
should also follow w up on outtstanding cheecks. Old ouutstanding
checks should be vooided and reissued to payeees who can be
b readily
locatedd. If the payyees cannot beb located, the
t amount should
s be
disburssed in accordaance with statte law.
A
3.1 We agrree to continue to work on o the old feee accounts. As A cited in

this auudit and previious audits, thhe State Audiitor has conclluded that
the opeen items recoords of prior administratio
a ons are not reeliable. As
a resullt, we must review
r the oppen items lissts and other financial
records
ds to determine the validity of each liabiility listed.
11
Tw
Ciity of St. Louuis
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Management A
3.2 We agree to innvestigate anny bank acccount recoonciliation

ments and maake the approppriate correcction if necesssary. Over
adjustm
$3.5 million
m of the audit referennced "plug nuumber" was generated
g
by thee office to compensate for the discrepancies
d of past
adminiistrations' finaancial recordds.
At the time of the 2000

2 audit, which
w began in late 19988 and was
requested by this Circuit
C Clerkk, the office held as "invvestments"
millionns of dollars collected by previous addministrationss as court
a deposits. As noted inn this audit, since 2002, we have
costs and
distribuuted $5 milliion of those funds to thee true ownerss. Over a
millionn dollars of the $1.3 milllion referencced by the Auditor
A as
"adjusttments" weree made to refflect money transferred
t fr
from these
"investtment" accounnts into JIS so
s as to distribute the monney to the
true owwners.
At thee time of coonversion to JIS, the Office Of of Stattes Court

Adminiistrator (OSC CA) entered innto an agreem ment with thee software
vendorr who createdd the softwaree we previoussly used for accounting
prior too JIS. OSCA did not include in its agreeement with thhe vendor
the sofftware prograamming necesssary to refleect in the oldd financial
records
ds the transferr of funds froom it into thee office's JISS financial
records
ds. Thus, the discrepanciees noted by the t Auditor in i the old
financiial records, not reflectingg those transfers, are ouutside the
controll of the officce, unless Citty funds are expended too create a
softwarre program change
c to crreate entries into the old system to
reflect transfers maade from it intto JIS. We arre reviewing whether
w it
is cost beneficial to pay for that software
s deveelopment.
In adddition, we aree voiding the old outstandding checks on o the old

bank accounts,
a andd reissuing a check to thhe payee, proovided we
have coonfidence in the mailing address
a listedd. We will dissburse the
balancce of the fundds to the Statte Treasurer''s Office as unclaimed
u
funds. As of the May M 2010, we have redduced the number of
outstannding checks by 834, totaliing $63,849.775.
Thhere are seveeral old court ordered bankk accounts on which no action
a has
4. Courtt Ordered beeen taken. The
T Decembeer 31, 2009, court orderred bank acccount list
Bank Account
A ts inncludes 16 casses totaling $1,551,786.
$ Eight of the caases originateed prior to
19999, with somme cases datinng as far backk as 1977. The Circuit Clerrk's office
inndicated a couurt order musst be issued directing
d the office
o how too disburse
thhe monies annd the Presidiing Judge inndicated the Court
C En Baanc is not
nootified of theese cases. Foor the eight court orderedd cases revieewed, the
foollowing conccerns were notted:
12
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Ciity of St. Louuis
M
Management A
• Four cases,, totaling $866,297 at Decem

mber 31, 2009, have had no
n activity
for more thhan 10 years. The Circuitt Clerk's officce personnel indicated
they have not
n contacted the Judge or attorney abouut these moniies.
• One case, with a balannce of $9,101 at Decembber 31, 2009, last had
activity in 2001. The Ciircuit Clerk's office personnnel indicatedd they had
contacted one
o attorney in 2009, reggarding thesee monies; how wever, no
documentaation of these efforts could be provided.
Thhe failure too routinely review inactivve cases andd disburse monies m as
apppropriate, deeprives the staate, city, or otthers the use of
o those moniies.
R
Recomme
endation Thhe Court En BancB and Circcuit Clerk revview court orddered bank acccounts to
deetermine the appropriate disposition
d off monies heldd. The Courtt En Banc
shhould consideer requesting the Circuit Clerk
C to perioddically submiit a report
off all court orddered bank acccounts.
A
Auditee's Responsse Thhe Presiding Judge
It is the duty of
o the Circuiit Clerk, as custodian,
c to periodically submit a
rep
eport to the Court
C en bannc of all Couurt ordered bank
b accounts, so the
Coourt can deteermine the apppropriate disposition
d off the monies held. The
Coourt can requuire this by Administrative
A e Order of thee Presiding Judge,
J but
this should not be necessaryy.
Thhe Circuit Cleerk provided the

t followingg written respoonse:
We disagree. The
W T State Audditor's positionn would placee the Circuit Clerk and
the Court in a position
p not consistent wiith their dutiees. In each off the cases
citted by the Sttate Auditor the
t parties whho may be enntitled to monney being
heeld in these seeparate accouunts are repreesented by atttorneys.
Leegally it is thee duty of the attorneys who represent thhese parties to t seek an
Orrder from the Court to recoverr fundss their client is entitled too receive.
Neevertheless, from
fr time to time
t the Circuuit Clerk has drawn to thee attention
off some attorneeys as is eviddenced in seveeral files, andd the Court thhe fact we
arre holding a dedicated
d bannk account foor the benefitt of a particular case’s
littigants, and sttill we maintaain accounts for
f those casees.
It should be nooted that all interest earnned on these funds

f is segrregated to
eaach case, suchh that the preevailing partyy or parties will
w receive thhe interest
eaarned, and thhat each of thhe eight casess cited by thee State Auditoor existed
prrior to 1999.
13
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Ciity of St. Louuis
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Management A
Thhe Circuit Cllerk does not have a form

mal procuremeent policy. Thhe Circuit
5 Circuiit Clerk''s
5. Cllerk indicatedd his inform
mal policy reqquires bids beb solicited for
f major
Disbursementts puurchases, butt not professsional servicces. We ideentified the following
disbursements from the Ciircuit Clerk'ss Special Inteerest Fund during
d the
yeears ended Juune 30, 2009 and 2008, made
m without soliciting coompetitive
bids/proposals or documentiing sole sourcce providers:
Seervice/Good 2009 20008

Acccounting serrvices $ 26,5595 48,920
Doocket prioritizzation system
m 45,0000 0
Thhe Circuit Clerk indicatedd the vendor chosen

c for acccounting serrvices and
thhe docket priioritization system,
s developed speciffically for thhe Circuit
Cllerk, were solle source purcchases; howeever, there waas no documeentation to
suupport this.
Foormal procurement proceddures providee a framework for the ecconomical

m
management o resources and
of a help ensure the Circuuit Clerk recceives fair
vaalue by contrracting with the
t lowest annd best biddeers. Bidding alsoa helps
ennsure all parrties are giveen an equal opportunity to participaate in the
buusiness of the office. Varioous bidding appproaches aree appropriate,, based on
doollar amount and type off purchase. No N matter whhich approachh is used,
coomplete docum mentation shoould be mainttained of all bids/proposals
b s received
annd reasons nooted why the bid/proposal
b was selected (including soole source
prrocurement). While profeessional servvices may not n be subjecct to the
staandard biddinng procedures, the Circuitt Clerk shoulld solicit propposals for
prrofessional services to the extent
e practiccal.
R
Recomme
endation Thhe Circuit Cllerk establishh formal procurement policies and prrocedures,
inncluding docuumentation requirements reegarding bidss or proposalss received
annd justification for the venddor selected.
A
W agree and have

We h reducedd to writing a procurement
p policy for theese funds.
With respect too the two insstances cited:: neither the payment for a unique
W
coomputer softw
ware program m, or accounnting servicees were outside office
poolicy.
Thhe Court needded a softwarre system for docketing too expedite thee handling
off an aging doocket of felonyy cases. The system
s was only
o availablee from the
veendor from whhom the officee purchased the
t program.
Foor eleven yeaars the office has contracteed for accounnting servicess on an as
neeeded basis. For
F examplee, in 1999, we w engaged foor accountingg services
14
Tw
Ciity of St. Louuis
M
Management A
froom a CPA firrm on an hourly basis. Latter, due to a loss

l of a statee paid full
tim
me employee,, we contraccted for accouunting servicces from the employee
whhose positionn was eliminated. That formmer employeee was workingg "the old
mooney," so as to return it to
t it true ownner. When thaat contract accountant
waas no longer available to perform such servicees, and we were w still
m hiring a state paid accouuntant, we soought anotherr qualified
reestricted from
coontract accountant.
Thhe contract accountant,

a w
whose selectiion is noted in this audiit was as
quualified as thhe previous contract
c accountant and was w paid lesss than the
prrevious accouuntant. This contract
c accouuntant was laater employedd as a full
tim
me state emplloyee, when wew were ablee to hire him, and his dutiees include
woorking the "old money" to return it to itt true owner.
It should be nooted that to daate the office has

h transferred $2.5 millioon dollars
off interest earnnings to the City,
C despite a reducing ballance on whicch to earn
interest and with a steep deccline in the innterest rate paaid.
Thhe Pre-Trial Release (P PTR) office needs to improve

i poliicies and
6 Pre-Trrial Releease
6. prrocedures related to the collection off bonds. PTR R personnel interview
deefendants to aid the Judgge in determ
mining the boond to be seet for the
deefendant and process bonnds during noon-business hours.
h The PT TR office
coollects approxximately $175,000 annuallly in cash bonds and siggnificantly
m
more in surety bonds.
6.1 Bonds Soome bond am mounts and types (i.e., cash,

c propertty, or suretyy) are not
prroperly authorrized or authoorization for the
t bond acceepted is not adequately
a
doocumented. Bond
B amountss and types area required to t be establisshed by a
Juudge by court order. All boond orders aree to be postedd to the case docket by
thhe Circuit Cleerk's office. The
T Court En E Banc adoppted a PTR policy p for
soome misdemeeanor and all felony cases requiring a JudgeJ set the condition
off release and inform the PTR
P office off the decisionn. The policyy provides
foor the PTR Coommissioner to t contact thee Duty Judge for approval of a bond
ammount and typpe (if no ordeer on file) andd changes to ordered bondd amounts
orr types, if the bond transacction occurs during
d non-buusiness hourss. In April
20007, the Pressiding Judge granted apprroval for the PTR office to set the
boond amount after
a unsuccesssfully attemppting to contaact a Duty Juddge for an
hoour. The folloowing concernns were notedd during a revview of 11 bonnds:
• Four bondds reviewed were

w set at a different amount
a and type than
t Judge. Thhere was no evidence avvailable to
originally ordered by the
indicate a Judge approvved the changge. For one case,
c the Judgge's order
indicated a $50,000 caash or properrty bond wass required; hoowever, a
new order was signed by
b the PTR Commissioner
C r (with her innitials) for
the Judge approving
a a $50,000
$ suretty bond. The Judge indicatted he did
not approve the change to the bond tyype on this caase.
15
Tw
Ciity of St. Louuis
M
Management A
• For two cases reviewed, PTR personnnel indicatedd the case docket or file
had not beeen reviewed to determinee the correct bondb amountt and type
approved byb the Judge. In addition, some bond modificationns are not
posted to case docketss on a timelyy basis. Threee bond moddifications
reviewed were never posted to the case doocket and one o bond
modificatioon was not posted
p until 9 days after it was approoved. The
Circuit Cleerk indicated this bond moodification was
w not receivved by his
office untill he called annd requested it from the PT
TR office on the
t date it
was stampped as receeived. No one o could determine
d w
why bond
modificatioon orders werre not receiveed by the Circcuit Clerk's offfice. As a
result, the bond amountt and type orrdered by the original casee Judge is
not alwayss used when the t bond is acccepted by thhe PTR officee. Instead,
the amountt and type of bond set by the t Duty Judgge or the PTR R office is
used.
• The PTR office

o does noot use the bondd forms approoved in the PT
TR policy
adopted byy the Court Enn Banc.
Thhe errors notted above alll related to one

o bond com mpany. The Presiding
Juudge formed an Ad Hoc Bond Comm mittee to revview Pre-Triaal Release
offfice procedurres, asked law
w enforcemennt to investigate for possibble wrong
dooing, and requuested the Missouri
M Depaartment of Inssurance invesstigate the
boond company and any agennts acting on its
i behalf.
Prroper approvval/authorizatiion and adeequate docum mentation whhich fully

exxplain bond amounts
a and types
t are neceessary to ensuure bonds aree properly
recorded and forwarded
fo to the
t Circuit Clerk's
C office, and to reducce the risk
off unauthorizedd bond types and modificaations.
6.2 Receipts Prrocedures andd controls foor monies coollected durinng non-businness hours
neeed improvemment. Moniess collected byy the PTR offfice are transsmitted to
thhe Circuit Cleerk's office during
d normaal business hours.
h The PTTR office
isssues approximmately 350 receipt
r slips annually. Thhe following concerns
t PTR office:
weere noted durring a review of receipt slipps issued by the
• There is no independdent review to ensure receipts are properly

transmittedd to the Circcuit Clerk's office.
o Receippt slips issueed are not
reconciled to amounts trransmitted or the Circuit Clerk's
C receiptt slip.
• The PTR office

o does noot account forr the numericcal sequence of receipt
slips issueed. In additioon, receipt slips
s are nott issued in numerical
n
sequence, which
w causes difficulties inn accounting for all receiptt slips.
Too adequately safeguard recceipts and redduce the risk of o loss, theft, or misuse
off funds, the nuumerical sequuence of receiipt slips issueed should be accounted
a
16
Tw
Ciity of St. Louuis
M
Management A
foor properly annd amounts trransmitted shhould be recoonciled to recceipt slips

isssued by someeone independdent of the recceipt process..
R
Recomme
endationss Thhe Court En Banc
B and Couurt Administraator:
6.1 Ensuree proper apprroval/authorizzation is obtaained and doocumented

for boond amountts and typees, and moodifications to bond
amounnts/types. The Court En Baanc and Courtt Administrattor should
also ennsure the PTR policy is properly
p folloowed. In adddition, the
Court En
E Banc shoould continue to assist law w enforcemennt and the
Missouuri Departmennt of Insurancce with investtigating the boonds.
6.2 Requirre an indepeendent review w to accounnt for the numerical

n
sequennce of receipt slips issued and ensure alll monies colllected are
mitted to the Circuit Clerk's office.
transm
A
J providded the following written reesponses:
6.1 The Prresiding Judgee appointed an a Ad Hoc Boond Review Committee,

C
which met
m several tiimes over the past few monnths and issueed several
interim
m reports. Thhe Committeee recommennded that thee pretrial
releasee commissionn comply with w the preetrial releasee manual
adopteed by the courrt en banc in 2005,
2 and thaat each of thee judges of
our coourt be proviided with a summary off applicable rules r and
statutess pertaining to
t modifying conditions
c off release and a form for
enterinng orders perttaining to ordders modifyinng such conditions. The
Commiittee also reecommended that the couurt purchasee a smart
phone for
f the use off the evening and weekendd duty judge so s that the
judge could
c review
w complaints seeking arreest warrants and bond
settingss, so that there would bee a verifiablee record thaat a judge
authorizing a warraant and settinng a bond hadd actually donne so. The
Commiittee also reccommended that t the Presiiding Judge enter
e into
discusssions with thee City of St. Louis
L to the end
e that an agreement
a
be reacched with thee City for thee pretrial releease commisssion to be
transfeerred to the City's
C divisionn of correctioons. In its finnal report,
dated June 10, 2010,2 the Committee
C reecommended that the
Presidiing Judge issuue an adminisstrative orderr that the 20110 pretrial
releasee manual acccompanying their reportt supersede the 2005
pretriaal release maanual. The reevised manuaal includes prrocedures
for enssuring properr approval/authorization foor bond amouunts, types
and moodifications. There are sevveral changees made in thee manual,
but thee most signifiicant is that pretrial
p releaase commissiooners will
now acccept conditioons of releasse in all casees. At present, pretrial
releasee commissionners accept conditions of release in soome cases
and juudges accept the conditioons of releasee in other cases. The
Commiittee believess that theree are advanntages in haaving this
17
Tw
Ciity of St. Louuis
M
Management A
functioon performedd by the samee persons in all cases, soo that the
proceddures will be consistent
c and the work will
w be perform med better
when thet same persons do thiis work all the t time. The manual
contemmplates that confined
c persons be releassed wheneverr they are
preparred to meet thhe conditions of release seet by Judges, whatever
the dayy or time, annd urge the Presiding Juudge to meett with the
sherifff and the divission of correcctions to ensurre this. The Committee
C
hopes that
t their worrk will prove to be of benefefit to the court and the
public.
The Presiding Juddge is engagged in discusssions with the t City's

Departtment of Public
P Safetyy and Divission of Coorrections,
concerrning the trannsfer of all orr part of the court's
c pretriaal release
functioons in an effort to streamliine the pretrial release proocess and
eliminaate duplicatioon of services..
Pretriaal Release em
mployees weree again direccted to follow w the 2005
pretriaal release manual,
m untiil further notice.
n The Missouri
Departtment of Insurrance compleeted its investiigation.
6.2 A reconciliation of approximatelly 700 receippts for the 2-yyear audit

period (FY08 and FY09),
F showeed that all monies collecteed during
non-buusiness hours were transmiitted to the Ciircuit Clerk's office.
The leaad Assistant Pretrial

P Releaase Commissioner (APRC) C) on duty,
on the next businesss day, will veerify that the entries
e on thee previous
night's Shift Status Report Sheeet, and the reeceipts attachhed to the
sealed deposit envellope(s) colleccted, reconcille before delivvering the
depositts to the Circuuit Clerk Casshier.
The Prretrial Releasse Manual haas been undeer review bothh prior to
and duuring this auddit period. A written draft procedure, too account
for the Bond Cash Receipts
R and Deposit
D slipss that are colllected and
depositted by decenttralized officees, was proviided to the Court's
C Ad
Hoc Bond
B Revieww Committeee. The Couurt will connsider all
recomm mendations and observatioons made by the t State Audditor in the
final puublication of the Manual.
Prenum mbered, threee-part, NCR/ppressure form mat cash receeipt books

are useed, in date order
o and in numerical seequence. APR RCs were
again directed
d to usse one receipt book at a tiime and use receipts
r in
date orrder and nummerical sequennce. These recceipts will bee stored in
individdually numberred and sealeed envelopes for
f future trannsactions.
The nuumber identifi
fies the receippt number seqquence to be used
u next.
Completed cash reeceipt books will be storred in a seccure area
locatedd on the 1st floor
f of the Carnahan
C Couurthouse (CC CH) by the
lead AP PRC on duty in the Pretriaal Release Offffice and a logg/index of
18
Tw
Ciity of St. Louuis
M
Management A
all utilized cash receipt bookss in storage will be recoorded for

retentioon purposes.
The Caash Receipt number

n will be
b documenteed on the cassh deposit
enveloppe that is seaaled by the APRC acceptinng the cash bond,
b and
on thee Bank Depoosit Log Sheet. A Bank Deposit Logg Sheet is
compleeted by the AP PRC for each cash collectiion to be depoosited and
is attacched to the prenumbered CashC Receiptt along with the
t sealed
enveloppe of cash. These
T three doocuments ideentify the prennumbered
Cash Receipt
R nummbers and the cash amouunts collecteed by the
APRC. The Bank DepositD Log Sheet amount, the dollaar amount
writtenn on the sealled deposit ennvelope of caash collectedd, and the
Pre-nuumbered Cassh Receipt (yellow),
(y copy
py amount shhould all
reconccile. In additioon, the APRCC on duty in the
t City Justiice Center
(CJC) will attach a copy of thee Bank Depoosit Log Sheeet to their
daily Shift
S Status Reeport Sheet.
The Circuit
C Clerk'ss Cashier wiill open the deposit enveelope and
count the
t cash in thhe presence of o the APRC. The Cashierr will sign
the Baank Deposit Log Sheet and a generatee an automaated Cash
Paymeent Receipt foor each separrate bond deeposit. The APRC A will
verify that all inforrmation is coorrectly recorrded on the automated
a
receiptt from the Circuit
C Clerkk's Cashier before accep epting the
automaated receipt and a leaving thhe Cashier's window.
w Disccrepancies
involviing cash will be b counted aggain by the Cashier
C and APRC, and
if theree is still a disscrepancy, this will be broought to the immediate
i
attentioon of the Couurt Administraator.
The thrree documentts, the Bank Deposit

D Log Sheet
S with the Cashier's
signatuure, the prennumbered Caash Receipt (yellow)
(y copyy, and the
automaated Cash Paayment Receip ipt (white) arre stapled toggether for
each bond,
b and arre kept in daate order byy the date off Pretrial
Release’s Cash Recceipt. These stapled
s docum ments are theen kept in
date orrder by calenndar year, annd retained for
fo 5 years inn a secure
area within
w the CCHH Pretrial Release Office.
If the state-wide court

c softwarre system, thhe Justice Infformation
Systemm (JIS) permitts, the Circuiit Clerk's Caashier should enter the
prenummbered Pretriial Release (P PTR) Cash Reeceipt numberr in JIS so
that thee PTR Receippt number priints out on thhe automated Cashier's
receiptt. Since bondd money paaid by the suurety is listeed in the
defenddant's name, not
n the namee of the payeee, having thhis receipt
numberr in the Cleerk's system would
w add too the audit trail. The
automaated receipt iss attached to the bond kept in the PTR office.
o
19
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Ciity of St. Louuis
M
Management A
Thhe Circuit Cleerk provided the

We agree. In August
W A 2009 we
w tried to iniitiate a list off PTR documeents given
to the Clerk's office
of and received by the Clerk's
C office,, verified by the
t sender
annd receiver. We
W were unabble to obtain such
s a verifieed list. In respponse, we
deeveloped andd maintain to t date a Clerk's
C office verified listt of PTR
doocuments thatt we receive from
fr PTR.
Affter the Courrt created an ad hoc committee to loook into PTR issues,
i we
coompared files in which a bond
b modificaation was souught by the deefendant's
atttorney, and heard in a courtroom.
c Inn those casess a multitudee of bond
coompanies eveentually wrotee the bond forf the modiffied amount and type.
Thhere is no quuestion as to the timelinesss and accuraacy of recordding those
moodifications.
Im
mprovement is i needed in Probate
P Divission policies and
a procedurres related
7 Probaate Divisiion
7. to manual receeipt slips issuued and uniddentified monnies held. Thhe Probate
Diivision colleccts approximaately $280,0000 annually foor filing and case fees,
coopies, and juddgments.
7.1 Manual receipt sliips Thhere is no inddependent revview to ensurre manual recceipt slips aree properly
enntered into thee JIS and subbsequently deposited. In adddition, originnal copies
off some voideed manual reeceipt slips were
w not maaintained. Recceipts are
noormally posteed to the JIS as received; however, manual
m receiptt slips are
isssued when thhe cashier or computer syystem is not available.
a Thhe Probate
Diivision issuess approximateely 300 manual receipt slipps annually.

off funds, manuual receipt slips
s issued should
s be reccorded in thee JIS and
reviewed by someone
s inddependent of the receipt process. In addition,
vooided manual receipt slips should be prooperly mutilatted and retainned.
7.2 Unidenttified moniies While bank recconciliations are prepared and reconcileed to lists of liabilities,
W
thhe JIS accounnt has an uniddentified balaance of $8,1224. The Probbate Clerk
staated she is aw
ware of the unidentified
u f
funds and hass attempted to identify
thhese monies foor over 2 yearrs.
Thhe failure to routinely disbburse moniess as appropriaate, deprives the state,

citty, or others the
t use of thoose monies. Thhe Probate Cllerk should coontinue to
atttempt to deteermine the prooper dispositiion of unidenntified moniess. If these
m
monies cannott be identifieed, the Probaate Division should dispoose of the
unnidentified moonies as provided by varioous statutory provisions.
p
20
Tw
Ciity of St. Louuis
M
Management A
R
Recomme
endationss Thhe Probate Diivision:
7.1 Requirre an indepenndent review of manual receipt

r slips to ensure
they arre recorded in the JIS annd maintain original coppies of all
voidedd receipt slips..
7.2 Investiigate and resoolve the unideentified balannce in the JIS

S account.
Furtherr, the Probatte Division should
s dispoose of all unnidentified
moniess as provided by state law.
A
Auditee's Responsse Thhe Probate Coommissioner//Clerk providded the following written reesponses:
7.1 New Procedure:

P O
Only in an emergency
e w a cashierr issue a
will
manuaal receipt. All Cashier issuued receipts must
m be approoved by a
Supervvisor and entered into JIS.
JI All origiinal copies ofo voided
manuaal receipts musst be maintainned.
7.2 The Probate

P Divission spent over
o two yeaars in an attempt
a to
determmine the propper dispositioon of the unnidentified fuunds. The
Probatte Clerk wass able to ideentify the prooper dispositiion of all
unidentified funds with the excception of $88,124 identifiied in the
audit. On April 6, 2010,
2 the rem
maining $8,1224.00, was trransferred
to the State
S of Missoouri-Treasureer – Unclaimeed Property Division.
D
Coontrols over receipts

r initiaally collected in field officces need imprrovement.
8 Juvenile Divission
8. Thhe Juvenile Division collects
c apprroximately $13,700
$ annuually for
restitution; how
wever, not alla of these monies
m are collected
c by the field
offfices.
• The Juveniile Division is unable to ensure all monney orders received by

the field offfices are trannsmitted to thhe Restitutionn Office. Unnnumbered
payment foorms, which do not have duplicate coopies, are issuued when
money ordders are received by fieldd offices, andd a receipt log l is not
maintainedd. The originnal payment forms are trransmitted, allong with
money ordders received,, to the Juvennile Divisionn Restitution Office. A
copy of the payment foorm is filed in i the case fiile and the paayment is
documenteed in the case notes.
• Money ordders are not reestrictively enndorsed immeediately upon receipt.

off funds, officiial prenumberred duplicate receipt slips//payment formms should
bee prepared whhen monies area initially received
r or a receipt log should
s be
m
maintained. Prrocedures shhould also be b establisheed requiring someone
inndependent off the receipt process
p to ennsure receipts are transmittted to the
21
Tw
Ciity of St. Louuis
M
Management A
Reestitution Offfice. In adddition, moneey orders shhould be resstrictively

enndorsed immeediately upon receipt.
R
Recomme
endation Thhe Juvenile Division
D requuire official prenumbered
p duplicate recceipt slips
bee prepared or a receipt logg be maintainned and reconncile receipt records
r to
am
mounts transmmitted to the Restitution
R O
Office. The Juuvenile Division should
also endorse money
m orders immediately
i u
upon receipt.
A
Off the $13,7000 received annually in the Restitution account

a depossited with
the City, apprroximately $33,500 of thatt is money paid p by juveeniles and
coollected in thee field unit off maining fundds are paid to the court
ffices. The rem
froom a privatee non-profit corporation PayBack, Inc., I and theen further
diistributed by the
t court to victims.
v Checkks from PayB
Back, Inc. go directly
d to
the Restitution office and noot to the two field
fi offices.
Thhe recommenndations abovve were articculated durinng an April 28, 2010,

meeeting held with the statte auditor reegarding resstitution. Prennumbered
reeceipt books were immeddiately purchaased and plaaced in the field f units
eff
ffective Marchh 29, 2010, when
w the audditors first aleerted us to the issue of
prrenumbered receipts. Thuus, the prennumbered receipt issue has been
adddressed and has been in place
p for overr two months.
Thhe Restitutionn proceduress were updatted followingg our April 28, 2 2010,
meeeting with the
t auditor and
a sent to thhe auditor onn May 3, 20110. Those
reestitution proccedures impleement all of thhe auditor’s recommendati
r ions.
Thhe immediatte restrictive endorsemennt was impllemented im mmediately

following our April,
A 2010, meeting
m with the
t auditor. Monies
M are lissted in the
reestitution spreeadsheet withhin one workiing day of paayment receippt. A copy
off the prenum mbered receip ipt stays in the receipt book constituting an
mmediate logg of monies received annd receipts are witnesseed by an
im
independent peerson other thhan the Deputty Juvenile Officer
Of (DJO) accepting
the money ordeer, secured inn a locked conntainer, and hand-delivere
h ed the next
buusiness day too the restitutioon office by the
t staff membber assigned to deliver
interoffice maiil. The Businness Office reeconciles thee spreadsheett with the
Ciity's general ledger
l on a monthly
m basis.
Ciircuit Cleerk's Oveerall Thhe Circuit Cleerk provided the

t followingg overall writtten response:
Reesponse Foor the past elleven years thhe State Auditor's office haas played a major
m role
in helping this office improove its financcial record keeeping. Over the years
wee instituted a computerizeed financial record
r of crimminal cases, and
a made
maany other imp
mprovements to t our proceddures using most
m of the findings
fi of
the initial auddit as a "bluue print" to construct our finance dep epartment.
Thhrough this paartnership wee have made great
g progresss from the initial audit
22
Tw
Ciity of St. Louuis
M
Management A
whhich containeed 51 recomm mendations, numbering

n ovver 100 pagees, to this
auudit’s 8 recommmendations,, of which 5 are ongoing long term isssues from
the initial auditt where we haave made subbstantial proggress.
23
Twenty--Second
T d Judicia
Tw
al Circuuit
C of St.
City S Louiis Ciity of St. Louuis
Orrganization annd Statistical Information
O
Organiz ation an
nd Statiistical Innformattion
Thhe Twenty-Seecond Judiciaal Circuit incluudes only thee City of St. Louis.
L The
cirrcuit consistss of 24 circuitt judges, one of whom servves as presidiing judge,
7 associate juddges, and 5 commissioneers. In additiion to the juudges and
coommissioners, the Twentyy-Second Juddicial Circuitt includes thhe Circuit
Cllerk, Court Administrator,
A Jury Superviisor, Juvenilee Division, annd Probate
Diivision.
Personnel Att June 30, 2009, the judgees of the Twennty-Second Juudicial Circuuit, City of
Stt. Louis, weree as follows:
Title Name
Ciircuit Judge, Division
D 1 Daavid L. Dowdd, Presiding Juudge
D 2 Miichael K. Mulllen
D 3 Johhn Garvey
D 4 Jullian L. Bush
D 5 Maark H. Neill
D 6 Miichael P. Davvid
D 7 Johhn J. Riley
D 8 Anngela T. Quiggless
D 9 Maargaret M. Neeill
D 10 Phhilip D. Heagnney
D 11 Bryyan L. Hettennbach
D 12 Deennis M. Schaaumann
D 13 Steeven R. Ohmeer
Associate Judgge, Division 14 Thhomas C. Clarrk, II
D 15 Roobin Ransom Vannoy
D 16 Joaan L. Moriartty
D 17 Daavid C. Masonn
D 18 Roobert H. Dierkker, Jr.
D 19 Lissa Van Ambuurg
D 20 Doonald L. McC Cullin
D 21 Thhomas C. Graddy
D 22 Thhomas J. Frawwley
D 23 Timmothy J. Wilsson
Associate Judgge, Division 24 Eliizabeth B. Hoogan
Associate Judgge, Division 25 Pauula P. Bryantt
Associate Judgge, Division 26 Caalea Stovall-R
Reid
Associate Judgge, Division 27 Thheresa Countss Burke
Associate Judgge, Division 28 Baarbara Peebless
Associate Judgge, Division 29 Miichael F. Stelzzer
D 30 Jim
mmie Edwardds
D 31 Eddward Sweeneey
Att the beginning of
o each calendar year, the judgess may switch divvisions.
24
Tw
Ciity of St. Louuis
Orrganization annd Statistical Information
Att June 30, 20009, the com mmissioners, Circuit

C Clerk, Court Adm ministrator,
annd certain othher personnel of the Twennty-Second Juudicial Circuiit, City of
Stt. Louis, weree as follows:
Title Name
Coommissioner,, Probate Division Pattrick J. Connaaghan
Coommissioner,, Drug Court Jam
mes Sullivan
Coommissioner,, Family Courrt Annne-Marie Claarke
Coommissioner,, Drug Court Miichael Noble
Coommissioner,, Family Courrt Tim
m Finnigan
Ciircuit Clerk Maariano V. Favvazza
Coourt Administrator Heelen D. Haskinns
Prre-Trial Releaase Commissiioner Maary Catherinee Moran (1)
Juury Supervisor Miichael Devereeaux
Juuvenile Officeer and Assistaant Court Kaathryn S. Hermman
Administraator
Prrobate Office Manager Sanndra Lombardo
(1)) Mary Catherrine Moran retireed in April 20100. The court doess not currently plan to
replace this position.
p As of June
J 8, 2010, thee court is still in discussions withh the city
regarding the possible reorgaanization of the Pre-Trial Releasse office. The Coourt En
Banc is conssidering transferrring some or all of the Pre-Trial Release office
responsibilitties to the Deparrtment of Public Safety, Correctiions Division, inn order to
streamline thhe process.
Financial Innformation
n Reeceipts of thee Twenty-Seccond Judicial Circuit, Cityy of St. Louiss, were as
foollows:
Court Officee Year Ended

E June 30,
3 2009
Ciircuit Clerk $ 23,305,586
Prrobate Divisioon 281,192
Juuvenile Restituution 13,676
Total $ 23,600,354
C
Caseload Innformation Frrom the Officce of State Courts
C Adminnistrator Misssouri Judiciall Reports,
caase filings of this
t judicial circuit
c were ass follows:
Year Ended
E June 300,
2009 20008
Ciivil 35,277 33,6668
Crriminal 10,871 13,2664
Juuvenile 1,154 1,4009
Prrobate 1,069 9446
Total 48,371 49,2887
25

22nd Judicial Circuit Court Audit

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22nd Judicial Circuit Court Audit

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Susan Montee, JD, CPA

Missouri State Auditor

City of St. Louis

June 2010 auditor.mo.gov

Susan Montee, JD, CPA

Susan Montee, JD, CPA

All reports are available on our Web site: auditor.mo.gov

Organization and Statistical 24

Presiding Judge and Court en banc

2. Evaluate the judicial circuit's compliance with certain legal provisions.

Susan Montee, JD, CPA

The following auditors participated in the preparation of this report:

Director of Audits: Alice M. Fast, CPA, CGFM, CIA

• The indepeendent review w by the Circcuit Clerk's Bookkeeping

• The methood of paymeent (i.e., cashh, check, or money ordeer) and/or

Too adequately safeguard recceipts and redduce the risk of

1.3 Witnesss fees Thhe Circuit Cleerk's office has

Seection 483.5550, RSMo, provides

1.2 The Court

1.3 The Ciircuit Clerk ensure

Auditee's Responsse Thhe Circuit Cleerk provided the

Even thhough there isi no finding of

It shouuld be noted that

1.3 We agrree, and havve establishedd procedures to assess witness fees

We knoow the state collectable witness

functioon. Thereafterr, we will reeview all rem

Thhe Presiding Judge

Ciircuit Clerk procedures

Thhe Circuit Clerk's

A detailed list of liabilities should be maaintained whiich can be ideentified to

• Seven casees reviewed, totaling

year, the Circuit Clerrk's office normally

• Seven casees reviewed, totaling $1177,570, indicatted the Circuuit Clerk's

Thhe failure to t routinely review liabbilities and disburse monies m as

Recommeendationss Thhe Circuit Cleerk:

2.1 Conduct a review of unidentifi fied JIS liability accountss. Once a

2.2 Routinnely review liabilities

2.1 We agrree. The childd support andd municipal money

Due too manpower issues

2.2 We aggree to reviiew outstandding liabilitiies to deterrmine the

Thhe Circuit Cleerk needs to improve

Ouur prior audits revealed numerous

Maintaining olld inactive acccounts increeases the riskk of theft or misuse

3.2 Bank reeconciliatio

• Differencess totaling $3,,782,654 werre added to book

• Numerous miscellaneoous reconcilling items, (a net am mount of

Baank reconciliation differennces and adjuustments shouuld be investigated and

Old outsttanding checcks Foollow up on outstanding

Foollow up onn outstandingg checks is necessary to t ensure monies are

3.2 Ensuree bank recoonciliation differences

3.1 We agrree to continue to work on o the old feee accounts. As A cited in

3.2 We agree to innvestigate anny bank acccount recoonciliation

At the time of the 2000

At thee time of coonversion to JIS, the Office Of of Stattes Court

In adddition, we aree voiding the old outstandding checks on o the old

• Four cases,, totaling $866,297 at Decem

Thhe Circuit Cleerk provided the

It should be nooted that all interest earnned on these funds

Thhe Circuit Cllerk does not have a form

Seervice/Good 2009 20008

Thhe Circuit Clerk indicatedd the vendor chosen

Foormal procurement proceddures providee a framework for the ecconomical

W agree and have

froom a CPA firrm on an hourly basis. Latter, due to a loss