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1972 JEFFERSON COUNTY ACCOUNTS DEPARTMENT OF INTERGOVERNMENTAL RELATIONS MUNICIPAL DIVISION T II E S � O _ .?� 'y '4 l‘? 447"..k_A•, J. t. ,,,, 0 , )./..,,, ,,‘„,...,„„. „ _...„......,,..._....7 .. 1.4 : ,,._ .„.4.,,A„,?; ,iirus. , , : ::..e _ _.,.: _ _ ..._. 'I i (I< r$014 _12:_c: . _.___ 4.,, ,, ......s-7-..r-- 71: ..,,, 44,4Y . Oacto d P Ai* 4•4t • • REPORT OF EXAMINATION STATE OF MONTANA IJEPARTINIENT ()F INTEI11- ()V ERNNIE\TA MUNICIPAL REGULATION DIVISION-805 N. MAIN-HELENA. MONTANA 59601 406-449-3010 1 � FORREST H. ANDERSON GOVERNOR November 27, 1972 To the Honorable Board of County Commissioners and the County Attorney Jefferson County Boulder, Montana Letter of Transmittal Gentlemen: As authorized and directed by Section 82-1002, R.C.M., 1947, we have conducted an examination of the books and accounts of Jefferson County, Boulder, Montana, for the periods stated. The results of the examination are set forth in the exhibits, schedules and comments of the report submitted. We trust that the Board of County Commissioners, in keeping with their responsibilities, will review the report and make whatever adjustments are appropriate. In accordance with paragraph 8 of said Section 82-1002, R.C.M. , 1947, please advise me in regard to the matters set forth. Respectfully, GEORGE . PENDERGAST Adorn i trator Munteipal Division TABLE OF CONTENTS Page Organization and Officers 1 Summary of Property Valuations and Summary of Property Tax Levies 2 Exhibit A Summary Statement of Treasurer's Receipts, Disbursements and Balances 3 Schedule A_--1_ Cash in Banks 4 Schedule A-2 Treasurer's Fund Balances 5 Exhibit B Summary Statement of Receipts), Disbursements and Balances 6 Schedule B-1 Combined Statement of Receipts - All Funds 7 Schedule B-2 Combined Statement of Disbursements - All Funds g Exhibit C Combined Balance Sheet - All Funds 9 - 10 Accountability Statements Index 11 Clerk of District Court 12 Public Administrator 13 Justice Courts 14 Examiner's General Comments 15 - 17 i REPORT OF EXAMINATION JEFFERSON COUNTY BOULDER, MONTANA ORGANIZATION BOARD OF COUNTY COMMISSIONERS Chairman Mr. John Heide Members Mr. Vincent M. Capp Mr. Joseph Sologub OFFICERS Assessor Mr. James V. Carter Attorney Mr. Allen LeMieux Clerk of Court Mrs. Grace W. Nelligan Clerk and Recorder Mrs. Joanne P. McFarlane Coroner Mr. Leonard G. Scott Justice of the Peace Mr. Edwin E. Kirtley Justice of the Peace Mr. Glen A. Stevens Justice of the Peace Mr. Jack T. Martinell Public Administrator Mrs. Mary Molitor Sheriff Mr. George E. Paradise Treasurer Mrs. Mary Ellen Murphy -1- SUMMARY OF PROPERTY VALUATIONS Year of 1971 Year of 1972 Taxable $ 7,225,196.00 $ 7,037,769.00 SUMMARY OF PROPERTY TAX LEVIES* FUND Year of 1971 Year of 1972 General 20.52 Mills 23.70 Mills Road 7.16 4.32 " bridge 4.35 .47 " Poor .17 6.38 " Classification and Appraisal .44 .30 " Noxious Weed .92 " 1.15 " Planning and Zoning .60 Total 34.66 Mills 36.32 Mills *Footnote: The property tax levies included in the above summary are those generally considered to be for county or county-related activities, and may or may not have been assessed against all the taxable property within the county. -2- EXHIBIT A SUMMARY STATEMENT OF TREASURER'S RECEIPTS, DISBURSEMENTS AND BALANCES April 21, 1971 to August 31, 1972 Balance in Funds, April 21, 1971 $ 392,893.40 Add Receipts in Total for Period 2,445,938.76 Total $ 2,838,832.16 Less Disbursements in Total for Period 2,373,385.09 Balance to be Accounted For, August 31, 1972 $ 465,447.07 ACCOUNTED FOR AS FOLLOWS August 31, 1972 Cash and Cash Items on Hand $ 5,177.32 Cash in Banks - Schedule A-1 460,269.75 Balance Accounted For, August 31, 1972 - Schedule A-2 $ 465,447.07 RECONCILIATION WITH BALANCE AS OF JUNE 30, 1972 Treasurer's Balance, August 31, 1972 $ 465,447.07 Add Cash Disbursed Since June 30, 1972 216,341.47 Total $ 681,788.54 Less: Cash Received Since June 30, 1972 $ 76,343.43 Warrants Payable on June 30, 1972 8,416.86 84,760.29 Clerk's Balance, June 30, 1972 - Exhibit B $ 597,028.25 -3- Schedule A-1 CASH IN BANKS August 31L 1972 Fiscal Demand Time Agent BANK Deposits Deposits Deposits Total Whitehall State Bank, $ 191,461.90 $ 30,000.00 $ $ 221,461.90 Whitehall, Montana First Boulder Valley Bank, 173,857.79 43,612.06 217,469.85 Boulder, Montana Northwestern National Bank of 21,338.00 21,338.00 Minneapolis, Minneapolis, Minnesota Total $ 365,319.69 $ 73,612.06 $ 21,338.00 $ 460,269.75 -4- Schedule A-2 TREASURER'S FUND BALANCES August 31 1972 FUND General $ 46,843.27 Road 30,024.63 Bridge 15,166.90 Poor 12.956.30 Library - Bookmobile 7.72 Classification and Appraisal 1,392.56 Noxious Weed 5,103.85 Rodent Control 739.93 Predatory Animal 22.63 State of Montana 6,609.56 Schools 304,448.50 Cities and Towns 7,688.69 District Court Trusts 26,629.95 Redemption 1,519.92 Motor Vehicle Suspense 293.00 Districts: Soil Conservation 1,397.66 Rural Improvement 513.51 Television 1,838.23 Fire 1,371.18 Planning and Zoning 379.08 Total $ 465,447.07 -5- EXHIBIT B SUMMARY STATEMENT OF RECEIPTS, DISBURSEMENTS AND BALANCES For Fiscal Years Ended June 30, 1971 and 1972 June 30, 1971 June 30, 1972 Beginning Balance $ 440,186.23 $ 495,992.43 Add Receipts in Total for Period - Schedule 8-1 1,595,780.19 2,007,088.50 Total $ 2,035,966.42 $ 2,503,080.93 Less Disbursements in Total for Period - Schedule B-2 1,539,973.99 1,906052.68 Ending Balance $ 495,992.43 $ 597,028.25 ACCOUNTED FOR AS FOLLOWS* June 30, 1971 and 1972 Cash and Cash Items on Hand $ 27,707.56 $ 125,708.01 Cash in Banks 484,913.93 479,737.10 Treasurer's Balance $ 512,621.49 $ 605,445.11 Less Warrants Payable 16,629.06 8 416,86 Clerk's Ending Balance $ 495,992.43 $ 597,028.25 *Footnote: The balances were verified by actual count and/or confirmation on August 31, 1972, and worked back to June 30th of the respective fiscal years. -6- Schedule B-1 COMBINED STATEMENT OF RECEIPTS - ALL FUNDS For Fiscal Years Ended June 30, 1971 and 1972 July 1, 1970 July 1, 1971 to to SOURCE June 30, 1971 June 30, 1972 Property Taxes and/or Assessments $ 243,987.35 $ 263,077.54 Penalties and Interest on Delinquent Taxes 982.69 555.08 Sales, Leases and Royalties of Tax Deed Lands 151.09 42.18 Federal Payments in Lieu of Taxes: Taylor Grazing Act 220.71 297.07 Forest Reserve Act 9,935.84 3,720.70 Liquor Tax Apportionment 2,041.66 2,095.53 Motor Vehicle Fleet Ad Valorem Taxes 1,081.20 6,793.36 Gross Vehicle Weight Fees - 5% 1,002.85 2,051.94 Driver License Fees - 5% 208.40 263.40 Motor Vehicle License Plate Registration Fees 31,015.40 36,659.94 Motor Vehicle Title Fees 96.48 251.05 Hail Insurance - 1% 2.07 Licenses: Liquor 225.00 300.00 Fees: Clerk of Court 1,176.54 1,350.20 Clerk and Recorder 6,298.95 6,987.30 Sheriff 149.00 185.00 Interest Earnings 3,000.00 3,007.59 Rentals and Leases 2,300.13 537.50 Sales of Materials and Supplies 125.00 419.71 Weed Spraying 2,569.80 3,632.70 Sale of Building 1.566.00 Sale of Lots 254.00 Cancelled Warrant 17.00 Reimbursements: Board of Prisoners 363.00 137.25 Civil Defense 964.40 1,247.63 Road Labor for City 6,397.00 Insurance 785.34 Montana Highway Commission 4,201.57 Refunds: Welfare 25.18 Duplicate Payments 584.87 200.81 Federal and State Grants: Welfare 1,259.85 1,950.67 Emergency Employment Act 4,199.97 State of Montana 126,135.07 116,795.28 Schools 1,055,986.93 1,335,756.73 Cities and Towns 57,677.03 65,233.77 Public Administrator's Estates 910.40 District Court Trusts 24,181.90 131,116.99 Redemption 4,685.59 932.65 Protested Taxes - Other Than County 372.97 Motor Vehicle Suspense 1,287.00 1,659.00 Districts: Soil Conservation 1,476.82 3,077.64 Rural Improvement 798.79 677.44 Television 69.00 2,293.90 Fire 5,880.39 2,910.91 Total $ 1,595,780.19 $ 2,007,088.50 -7- Schedule B-2. COMBINED STATEMENT OF DISBURSEMENTS - ALL FUNDS For Fiscal Years Ended June 30, 1971 and 1972 July 1, 1970 July 1, 1971 to to DEPARTMENT OR FUNCTION June 30, 1971 June 30, 1972 Commissioners $ 8,473.22 $ 8,294.41 Clerk and Recorder 17,847.46 21,673.46 Treasurer 19,835.46 25,076.18 State Examiner - Examination and Publication 725.00 372.00 Assessor 12,264.72 13,899.79 District Court 20,694.13 23,049.65 Sheriff 24,356.69 33,485.43 Attorney 8,233.17 9,302.63 Justice Courts 382.72 271.51 Coroner 609.98 177.29 County Buildings 17,365.15 15,863.53 Elections 3,902.06 4,722.26 Health 72.00 23.00 Highways and Bridges 54,505.30 60,917.90 Welfare 25,812.06 37,079.54 Hospital 10,875.69 17,994.11 Institutional Care 108.00 72.00 Care of Prisoners 1,637.23 805.75 Public Administrator 17.50 School Superintendent 7,440.62 6,332.89 Fair 300.00 300.00 Airport 302.60 302.60 Weed Control 9,464.94 6,121.50 Predatory Animal Control 200.00 350.00 Burial of Soldiers 2,370.00 1,350.00 Libraries - Bookmobile 3,600.00 Agricultural and Extension Services 4,190.92 5,598.42 Classification and Appraisal 2,431.26 2,500.00 Employer Payroll Contributions 18,645.39 26,163.69 Civil Defense 2,040.72 2,381.63 Capital Outlay 25,018.05 20,858.50 Refunds 194.46 61.48 Emergency Employment Act 3,747.17 State of Montana 126,637.78 115,419.36 Schools 1,010,055.29 1,253,592.42 Cities and Towns 58,771.66 61,645.41 Public Administrator's Estates 1,387.45 358.86 District Court Trusts 31,152.88 107,134.11 Redemption 4,638.59 548.03 Protested Taxes -- Otuer Than County 372.97 Districts: Soil Conservation 732.28 2,559.61 Rural Improvement 644.64 590.92 Television 719.22 Fire 1,586.22 7,793.43 Irrigation 250.00 Planning and Zoning 60.20 500.00 Sanitation 140.00 620.00 Total $_ 1,539,973_99 $ 1,906,052.68 -8- EXHIBIT C COMBINES BALANCE SHEET _. ALL FUNDS June 30, 1972 Trust and Fixed County Agency Assets ASSETS Total Fund Group _ Fund Group Fund Group Cash and Treasury Investments $ 605,445.11 $ 163,281.50 $ 437,163.61 $ Petty Cash 200.00 200.00 Receivables: Taxes and/or Assessments 86,572.31 21,169.01 65,403.80 Prepaid Expenses 5,285.14 5,285.14 Materials and Supplies: Road and Bridge 413.31 413.31 Lands Acquired by Tax Deed 423.83 423.83 Lands and Buildings 1,187,384.71 1,187,384.71 Tools and Machinery 363,539.67 363,539.67 Furniture, Fixtures and Office Equipment 83,835.36 33,835.36 Libraries __ 15023.69 15,023.69 Total $ 222_348,123.63 $ 195,348.96 $_ 502,567.41 $ 1,650,207.26 -9- EXHIBIT C Cont. COMBINED BALANCE SHEET - ALL FUNDS - cont. June 30, 1972 Trust and Fixed LIABILITIES/RESERVES/ County Agency Assets FUND BALANCES __ Total Fund Group Fund Group Fund Group Claims Payable $ 36,624.23 $ 36,624.23 $ $ Employee Withholdings Payable 2,145.53 2,145.53 Employer Payroll Liabilities 2,092.84 2,092.84 Warrants Payable 8,416.36 8,343.74 73.12 Loans Payable 302.53 302.53 Due to State of Montana 4,000.82 4,000.82 Due to Cities and Towns 4,406.72 4,406.72 Reserves For Petty Cash 200.00 200.00 Prepaid Expenses 5,285.14 5,285.14 Materials and Supplies 413.31 413.31 Trust and Agency 494,086.75 494,086.75 Fixed Assets 1,650,207.26 1,650,207.26 Fund Balances 139,941.64 139,941.64 ____ Total $ 2,348,123.63 $ 195,348.96 $ $ 1,650,207.26 FOOTNOTES TO COMBINED BALANCE SHEET - ALL FUNDS DISCLOSURE STATEMENT The balance sheet was prepared by the examiner. The financial information was developed from existing general ledger accounts, memoranda and other internal or external evidential matter. As far as practical, the statement is presented in accordance with the recommendations of the National Committee on Governmental Accounting, even though the books and accounts were not maintained in this manner. -10- ACCOUNTABILITY STATEMENTS INDEX Pa. e Clerk of Court Summary Statement of Receipts. Disbursements and Balances 12 Accounted For As Follows 12 Summary of Trust Fund Account Balances 12 Public Administrator's Estates Summary Statement of Receipts, Disbursements and Balances 13 Accounted For As Follows 13 Summary of Estate Fund Account Balances 13 Justice Courts Summary of Fines, Assessments and Remittances 14 -11- SUMMARY STATEMENT OF RECEIPTS, DISBURSEMENTS AND BALANCES CLERK OF DISTRICT COURT TRUST FUND April 1, 1971 to August 31, 1972 Beginning Balance $ 13,552.69 Add Receipts in Total for Period 132,640.80 Total $ 146,193.49 Less DiShn.rsements in Total for Period 120,131.49 Ending Balance $ 26,062,00 ACCOUNTED FOR AS FOLLOWS August 31i_ 1972 County Treasurer's Balance $ 26,629.95 Less Warrants Payable 567.95 Balance Accounted For $ 26,062.00 SUMMARY OF TRUST FUND ACCOUNT BALANCES August 31 1972 Page or Account Number Name of Account Amount 5098 State of Montana vs A. W. Madison $ 25,990.00 5239 Robert Langton vs Clayton Huntly 72.00 Total $ 2..,062.00 -12- SUMMARY STATEMENT OF RECEIPTSL DISBURSEMENTS AND BALANCES PUBLIC ADMINISTRATOR`S ESTATES April 1, 1971 to August 31, 1972 Beginning Balance $ 343.86 Add Receipts in Total for Period 10.00 Total $ 358.36 Less Disbursements in Total for Period 358.86 Ending Balance -0- --13- wI- PPtt P. rrpOi I- 0. rt I✓ m rt I-, ID rt O I-. t�t 0 000 0 O rt V v P1 rte I-� tr -h iO f-+ 1 V V 1-+ tl N •O • X O rt 0 E O rt sb O G ~ W I'• 0 P 0 0 G CP t tlj ' G y `c P) '. C • W W co N t....''' 1-1 CA rt 7" im rt H' PI fD H' rt H' t0 CDD I-' 4 N I--' N Up! to F+ V N V> t? 0 H- 1.J .C- F-+ W rt m M re 4- 1- V W W v Cr R Ln • 1�f' (C/) Io I 0 0 0 0 (t" V> 0 I w� cn � to w v, I-, rn 4- rt rn �4 !-' a w . 0 rt ' cn sec 0 0 0 c cil c �� ;n In 1.r„ to r. I F, I� u Iv. rt Ui V! I tv p A v' I `o CO � 0 0 0 0 0• N• F; ~ P1 0 0 o H yy y 7:1 ti r1 I co y N ON N w rt O .. - - rtI-irt W N N N � O" V• pa G A rt (� 0 cC �m o 0 0 1� � N ((1) Rte. Lo 0 0 M 0 ti a V' o+ N CC f-t O { o 0 0 to I C. rot C to I In it �t y H' O VI V W 4.. 100 et N N v 03 0 O% 1....i� O� W �p tv . ~ C3 p psi v 0 0 0 m rt OD i R• -14- EXAMINER'S GENERAL COMMENTS SCOPE The examination was conducted in accordance with the standards and procedures required by this department, which included an inquiry into the financial condition, methods and procedures employed, the accuracy of accounts and reports and compliance with the laws of the State. This does not contemplate that a detailed inspection of each accounting entry or document was made, but rather such testing as was considered necessary in light of the accounting procedures maintained. ACCOUNTING SYSTEM AND BASIS Except for the accounting of personal and real property taxes, the accounts of Jefferson County were maintained on a cash basis. COUNT_Y_TREASURER Cash and cash items were verified by actual count. The bank balances were verified by correspondence with the depository banks. Funds on deposit were amply protected by pledged securities, supported by custodian receipts and by the guarantee of the Federal Deposit Insurance Corporation. Investments were held in safekeeping by the County Treasurer and were personally inspected. PERSONAL PROPERTY TAaS The Treasurer's records showed a balance of $24,340.10 in delinquent personal property taxes for the years 1963 through 1971. A review of the delinquent tax records indicated that certain taxpayers had been frequently delinquent for several years. Section 84-4202, JR. .C. _M. , 1947, provides that the County Treasurer must, at the time of receiving; the Assessor's report, and in any event within thirty days from receipt of such report, levy upon and take into his possession such personal property against which a tax is assessed, or any other personal nroperty in the hands of the delinquent taxpayer. Records showed a total of $40,118.00 in uncollected. delinquent 1972 personal property taxes. Section 84-4202, R.C.M. , 1947, specifically outlines the Treasurer's Nk duties in regard to the collection of personal property taxes, and if necessary, the alternatives available. DELINQUENT TAX ROLL RECONCILEMENT Delinquent real property taxes appearing on the delinquent tax rolls for the years of 1966, 1967, 1968 and 1968 were not in agreement with the Clerk's general ledger accounts of County and trust and agency delinquent taxes. The difference, it appeared, was the failure of the Treasurer and the Clerk to make proper adjustments when Jefferson County High School was converted to a district school. <..,' COUNTY BUSINESS LICENSES The license coverage did not appear to include all firms or occupations in the County subject to Montana license statutes. We refer to Sections84--3201 to 84-3209, R.C.M. , 1947, which outline the County license requirements and penalties. Sections 84-2701 to 84 2708, R.C.M. , 1947, outline the Treasurer's duties and the available alternatives regarding County licensing. -15- EXAMINER'S GENERAL COMMENTS - cont. CLAIMS Selected claims were reviewed and checked for the general requirements of adequate itemization, certification of the claimants and the Commissioners' approval. For the most part, those claims checked met the requirements and were consistently charged to the appropriate budget items. EXPENSECLAI MS A number of claims submitted for reimbursement of actual expenses were not supported by receipts. BI)S ACCEPTED During this examination period, we noted that the low bid on a tilt-top trailer was not accepted. Whenever the low bid is not accepted, a statement explaining the circumstances should be entered in the Commissioners' minutes. Records indicated that four bids had been submitted and that the third highest bid had been accepted. CONTRACTS Section 16-1803, R.C.M. , 1947, provides that no contract shall be entered into between a board of county commissioners for the construction of any building; for which must be paid a sum in excess of two thousand five hundred dollars ($2,500.00) without first publishing a notice calling for bids. Records showed that a contract in the amount of three thousand five` hundred dollars ($3,500.00) had been let for the construction of a metal building with no evidence of a contract bid or formal minute entry noted. COMPENSATION OF MEMBERS OF THE BOARD Section l(,-9l2, R.C.M. , 1947, paragraph 3, states that salaries of the bard of bounty Commissioners of a county shall not be changed during the entire term for which such members are elected. If a vacancy occurs on the board of county commissioners, the person who is appointed and/or elected to fill the unexpired term shall receive the same salary as the person vacating the office. The records showed that one Commissthoner who was elected to fill the unexpired term of four years was receiving $25.00 per day, while the Commissioner he succeeded was receiving $20.00 per day. These overpayments were brought to the attention of the proper officials at the time of the previous examination, and this examiner was assured that the corrected salary schedule would be implemented. However, the records indicated that the Commissioner was still receiving $25.00 per day at the time of this examination. MINUTES The minutes of the Board of County Commissioners' meetings.,were reviewed in their entirety and were written up to date, signed and attested. OFFICIAL BONDS A bond covering the Treasurer in the amount of $25,000.00 was on file and appeared to meet legal requirements. All other officials and employees were covered by a faithful performance blanket position bond. -16- EXAMINER'S GENERAL COMMENTS - cont VACATION RECORDS We again request that all County officers and employees cooperate with the Clerk and Recorder in establishing and maintaining master vacation and sick leave records for all employees. Vacation and sick leave time accrued, used and the unused balance for each employee should be of record. FIXED ASSETS - INVENTORY RECORDS A detailed card file inventory had been partially established at one time, however, it has not been maintained up to date. We again recommend that each officer or department submit a detailed list of all fixed assets to the Board of County Commissioners. Where the cost cannot he determined, the Commissioners should fix an appraised value to submit to the County Clerk, where the corresponding asset accounts could be adjusted accordingly. All subsequent acquisitions and deletions should be kept current and the inventory cards balanced periodically with the general ledger. A physical count should be made by someone other than those who have custody of the property items. i carry G. Stine Municipal Examiner -17-