Auditor details findings in nine-part report
Oct. 12, 2007
Missouri State Auditor Susan Montee presented a nine-part report on an audit of the Missouri Higher Education Loan Authority, the state's loan agency. Each part identifies a finding, makes a recommendation and has a response from MOHELA.
Extra funds
The report stated MOHELA kept a large amount of extra money and nothing legally requires the agency to use all of it. It recommends the Missouri General Assembly require MOHELA to spend the money in a manner consistent to its mission. MOHELA said there are some limitations on how they spend the money, there is very little extra money they are allowed to spend and there are already rules governing the use of those funds.
Executive severance packages
According to the report, the last four MOHELA executives to be terminated have received "excessive" severance packages and that future severance packages should be limited. MOHELA said the current board members will not give employees excessive severance packages.
Payroll matters
The report listed performance and Christmas bonuses, as well as other benefits MOHELA provided to its members, including three months of vacation time each year. It also stated MOHELA does not make sure its employees pay their state income taxes. It recommended MOHELA discontinue these practices, and MOHELA said it has taken steps to do each of those things.
Bidding process
The report section stated MOHELA did not get competitive bids when building its $1.25 million headquarters, as well as other projects. It recommends MOHELA do so and document it, which MOHELA agreed to do.
Expenditures
The report addressed excessive expenditures and MOHELA's failure to document those expenditures accurately. The expenditures included $7,320 for an employee picnic outing at Six Flags for 231 people and $13,126 for gym memberships for employees. The audit recommends MOHELA get competitive bids for such things and make sure the expenditures are limited to those that are necessary. MOHELA said they have already acted to address those concerns.
Inventories
The report stated MOHELA does not record the property it owns well enough or perform physical inventories of those properties, and it recommends MOHELA maintain adequate records of its property. MOHELA said it has implemented a new form to track property.
Internal audits
The report stated MOHELA did not respond well enough to the firm it hired for an internal audit. It recommends MOHELA give internal audits more attention so they can be completed in a timely manner. MOHELA said they have expanded their internal audit department and implemented new processes.
Company cars
The report stated MOHELA does not accurately record the use of fleet vehicles. MOHELA said they have implemented policies to do so, and they have reviewed the cars and will continue to do so.
Closed meetings
The last section of the report stated MOHELA meetings must be public "for any purpose whatsoever." The audit stated closing meetings is illegal and recommends they stop. MOHELA said they are complying with the Missouri Sunshine Law.
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