Tour of Missouri - Accountants' Report
Content
TOUR OF MISSOURI, INC.
Independent Accountants' Report
On Applying Agreed-Upon Procedures
December 31, 2008
Evers & Cotnpany, CPA's, L.L.C.
Certified Public Accountants and Consultants
Elmer l. Evers Jerome l. Kauffman Richard E. Elliott Dale A. Siebeneck Keith l. Taylor Jo l. Moore
INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES
State of Missouri Office of Administration Commissioner's Office State Capitol, Room 125 201 W. Capital Ave. Jefferson City, MO 65102
We have performed the procedures enumerated below, which were agreed to by the State of Missouri - Office of Administration solely to assist you with respect to the accounting records of Tour of Missouri, Inc.(TOM) for the year ended December 31,2008. TOM's management is responsible for its accounting records. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. Our procedures and findings are as follows and are referenced in accordance with the
request for proposal:
2.2.3
a. Procedure:
Verify the need for wire transfers and trace to vendor and contract.
b. Procedure: Trace non-wire disbursements to the associated vendor and contracts.
520 Dix Road • JeHerson City, Missouri 65109 • 573/635-0227 • FAX 573/634-3764
Village Green Shopping Center • 1021 W. Buchanan Street, Ste. 10 • California, Missouri 65018 • 573/796-3210 • FAX 573/796-3452
4571 Hwy. 54, Suite A • Osage Beach, Missouri 65065 • 573/348-4141 • FAX 573/348-0989
Member4!1!!Affiliated Offices Worldwide
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Results: We found no contract stipulations requmng payments to be made by wire transfer. The 2008 cash disbursement ledger included 282 checks and 36 wire transfers. Of these disbursements, we noted 27 payments to vendors with no or insufficient documentation (9%). See attached Exhibit A for a listing of the 27 instances of insufficient documentation. Insufficient documentation consists of either no vendor invoice or receipt for reimbursement or the information included on the check request form was not consistent with the supporting documentation. A policy and procedure manual was not provided to us by TOM which would have allowed us to determine if the procedures we were able to observe were consistent with the established policies. There was no support documentation for the following eleven checks: 1034, 1035, 1079, 1082, 1096, 1138, 1141, 1207, 1221, 1237 and 1248. A review of the bank statements revealed that these checks had not cleared the bank as of December 31, 2008. It is presumed that these checks were voided. The remaining 280 payments were traceable to: a contract, an invoice or an expense reimbursement request. c. Procedure: Verify that all disbursements are in accordance with the applicable contract(s). Results: The following contracts (or excerpts thereof) were provided to us and identified by the provider as vendor contracts: Hawthorn Foundation, Pinpoint, Medalist Sports, LLC, AVF Creations, Mike Weiss for expo sponsorship sales and Mike Weiss for acquisition of corporate sponsorships, Gorski Services, Hyatt Regency, Grote and Associates for 2008 Gala, Grote and Associates for 2009 LOC Prospects, Grote and Associates for 2008 Breakaway Club, Versus, MapMyFitness, Phoenix Sports, Madden Media, Visible Display, Kent Gordis Productions, All Seasons, IFM Sports, Price Stevenson Acoustic Research, Vitrue, Inc., Event Management Specialists, Inc:, Clark Sheehan Productions, LLC, All Custom Apparel, Golden Corral. Payments to the following six vendors agreed without exception to the vendor contracts; AVF, Clark Sheehan, Event Management Specialists, IFM Sports, MapMyFitness and Vitrue. Payments to Price Stevenson Acoustic, Phoenix Sports Tech and Visible Display agreed to the contract but the terms of the contracts were inconsistent. All three of these contracts had contract effective dates in August, 2008, however, the contract term ended September 16,2007. The exhibits attached to the contract for Visible Display and Price Stevenson Acoustic indicated the services were for the 2008 Tour. The exhibits attached to the contract for Phoenix Sports Tech referenced both the 2008 and the 2007 Tour. 2
Payments to Kent Gordis and All Seasons exceeded the original contract amount and the contract does not address the process for change orders, etc. Invoices were presented by the vendor in support of the additional payment. The approval process for the additional amounts was not documented on the supporting information. The contract with Versus states it is an agreement between Hawthorn Foundation/Missouri Division of Tourism and Versus and was to produce a two hour program entitled 2007 Tour of Missouri. The total payments to Versus in 2008 exceeded this contract. Invoices were presented by the vendor in support of the total amounts paid to Versus. Some of the service dates on the invoices are outside of the contract dates. It is unclear if all of the payments relate to the 2008 contract. All three contracts with Grote & Associates provide for a compensation amount plus additional compensation based on performance results and reimbursement of reasonable and approved expenses. The invoice submitted by the vendor and the only payment identified in 2008 included ~ of the agreed upon compensation for one contract and the total agreed upon compensation for the other two contracts and expense reimbursements. The information provided to us did not include an invoice for the other ~ of the agreed upon compensation or for additional compensation based on perfonnance results. The contract with Mike Wiess provided for reimbursement of travel, a meal stipend and transportation, a base "salary" and commissions based on sales. Amounts paid to Mike Wiess included 3 of an agreed upon 11 months of compensation, reimbursement of expenses and commissions. The base amount of the sponsorship on which the commission was based was traced to the sponsorship records. Three of the five commissions billed agreed to the sponsorship payment. The net variance relating to the other two sponsorships resulted in an overpayment of commissions of $975. The contract with Golden Corral included a base price plus fees. The invoice provided for the total payment did not detail the calculation of the fees in excess of the stated amount. The contract with Pinpoint allowed for a commISSIon based on sponsorship agreements procured by Pinpoint. Payments totaling $18,600 were made to Pinpoint. The sponsorship documentation provided to us confirmed $9,000 of that total payment. We do not have information regarding the other sponsor(s) to be able to recalculate the balance of the payment made to Pinpoint. .
3
The contract with Medalist Sports, LLC included a provision for a management fee plus reimbursement of expenses. The contract indicated an exhibit was to be included providing detail of operating line items and reimbursable expenses. This exhibit was not provided to us. We did request the information from the Tour of Missouri and as of the date of this letter none has been received. The contract with Medalist Sports, LLC also stated that the Tour of Missouri, Inc. will not reimburse Medalist for travel expenses unless such travel has the prior written approval of the Tour of Missouri, Inc. The documentation provided to us did not provide sufficient detail to allow us to confirm the prior written approval. Tour of Missouri, Inc. has advised that the internal procedure was to verbally approve these expenses. The attached Exhibit B summarizes how the Tour of Missouri, Inc. categorized the payments to Medalist Sports into various expense categories in the general ledger. There are several categories that include travel related expenses. No disbursements were identified as being issued to the following vendors; Mark
Gorski and Madden Media.
We also identified payments to 26 different vendors of $10,000 or more that we were not able to trace to a vendor contract. See Exhibit E for a listing of these vendors. Note that none of these vendors are included in the description at the beginning of this procedure that details all of the contracts provided to us. These payments totaled $745,266.06. Except for the items identified in Exhibit A, all payments were supported by an invoice from the vendor. The Hyatt Regency contract will be addressed later in the section that addresses lodging and banquet contracts. A number of the contracts included a provision that TOM had the right to pre approve expenses before they were incurred and then subsequently paid. We were not able to confirm whether that approval process happened. Also a number of contracts included a reference to an attached exhibit detailing a budget and those budget exhibits were not included in the copies of the contracts provided to us. The contract with All Custom Apparel is a trademark license agreement and allows All Custom Apparel to use the TOM logo on apparel. It also requires All Custom to pay a royalty fee to the TOM based upon a percentage of sales of licensed products. Tour of Missouri, Inc. paid $58,141.95 to All Custom Apparel for purchase of apparel to be used by staff and participants in the race. Tour of Missouri, Inc. received $8,905.89 royalties from All Custom Apparel. The only documentation for this payment was a photocopy of the check from All Custom which noted "royalties through 10/31/08".
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The following contracts were provided to us and identified by the provider as Lodging Contracts; Hilton Kansas City Airport, Hampton Inn St. Charles, Holiday Inn Select, Fairfield Inn, Embassy Suites, Quality Inn, Drury Inn St. Joseph, Drury Plaza Hotel, Hampton Inn St. Louis, Pear Tree Inn, Drury Inn Union Station, Drury Inn Kansas City Airport, Drury Inn St. Peters, Drury Inn Rolla, Drury Inn Springfield, Hyatt Regency. All of these agreements with the exception of Hyatt Regency, Holiday Inn Select and Hilton Kansas City Airport were strictly for lodging. The quotes in the lodging agreements were for the availability of a maximum number of rooms at a quoted price. The agreements with Hyatt Regency, Holiday Inn Select and Hilton Kansas City Airport included food and beverage provisions. Again, these quotes were for a maximum number of participants to .be served at a quoted price. We compared the total payments to the entity to the provisions in the agreement. There were no payments identified to Holiday Inn Select or Hampton Inn St. Charles. The total payment amounts were within the provisions of the agreements. Recommendation: The Tour of Missouri, Inc. should implement internal control procedures to ensure that all contracts contain all exhibits and schedules that are included in the contract. Also, procedures should be implemented to ensure that contract compliance is verified prior to payments being processed. The verification process needs to be documented in a manner that can be subsequently confirmed. d. Procedure: Review variances between contract and actual payments made to vendor. Results: See comments in procedure c above. e. Procedure: Evaluate the reasonableness of vendor payments provided / service received.
ill
relation to the product
Results: Most vendor payments were supported by either an invoice or a contract. We asked for a copy of the Tour of Missouri, Inc.'s policy and procedure manual to obtain an understanding of their adopted fiscal policies. We have been advised that a policy and procedure manual has not been adopted by the Tour of Missouri, Inc. We would have expected to be able to compare the procurement procedure
5
with policies and comment exceptions, if any. As noted in procedure c above there were payments to several vendors for whom no vendor contract was provided. We did review the comparison of 2008 actual income and expenses to the 2008 annual budget. Total expenses were under budget by $90,098.
Recommendation: We would recommend a fiscal policy and procedure manual be adopted and that the Division of Tourism include in their contract with the Tour of Missouri, Inc. their expectations with regard to vendor negotiations. Items such as, but not necessarily limited to, an expectation that the Tour of Missouri, Inc. adopt the State of Missouri procurement policies could be included in the contract.
f. Procedure: Verify that meal and lodging reimbursements are in accordance with CONUS guidelines and document variances.
Results: Meal and lodging reimbursements were made to both the Executive Director and Project Manager for the Tour of Missouri, Inc. and to Medalist Sports, LLC for their employees. The payments to the Executive Director and the Project Manager were tested as part of the procedures listed in procedure a and b above. There were a few isolated instances of missing receipts. As indicated in procedure e above we requested a copy of the Tour of Missouri, Inc.' s policy and procedure manuaL We would have expected to see a section devoted to policies on allowable expense reimbursements. Absent any policy to the contrary, we compared the reimbursement to the receipt and noted no exception other than the few instances of missing receipts. Recommendation:
We would recommend the fiscal policy and procedure manual as mentioned in procedure e above also include policies regarding staff expense reimbursements.
Results: For the expense reimbursements submitted by Medalist Sports, LLC we selected a sample of reimbursement requests and noted that most all expenses were supported by receipt documentation. However, a few reimbursements appear to be in excess of the State's per diem allowance. The agreement with Medalist Sports states that "all travel, lodging or meal reimbursement shall be subject to the extent practicable to the per diem limits established by the policies of the
6
State of Missouri". Of the meal expenses that we tested, many were supported by receipts that were unclear as to the number of people covered by the receipt or as to the location of the meal. Some of the receipts were illegible.. Accordingly, these expenditures could not be compared. The dollar amount of variances was not computed or totaled due to the aforementioned reasons. Also, as noted in procedure c above, the contract between Tour of Missouri, Inc. and Medalist Sports, LLC requires written preapproval by TOM for reimbursement of travel expenses. Documentation confirming the written preapproval process was not provided to us, therefore, we were unable to verify the preapproval process.
Recommendation:
As indicated in procedure c above, a procedure should be implemented to verify that the terms of the contract are met prior to issuance of the payment and the preapproval process should be documented so that the process can be independently verified.
g. Procedure:
Ensure that employee expense account reimbursements are for necessary and actual expenses incurred.
Results: See comments in procedure f above.
h. Procedure:
Reconcile profit and loss statements to bank statements and note any discrepancies.
Results: See attached Exhibit C for a schedule comparing monthly profit and loss balances to the balances on the bank reconciliations. The Tour's records forwarded to us contained no profit/loss statements for March, April, May, or October. The March bank statement indicated that there was no beginning balance which would indicate that there had been no transactions in the prior month. We were not provided information regarding when this bank account was established. The bank reconciliations appeared to have been generated through the Quickbooks
7
software. The profit and loss statements appear to have been generated via an excel spreadsheet. The statements appear to be prepared on the cash basis method of accounting, therefore, the reconciled bank balance should equal the net revenue over/under expenses for the same period of time and they did not. The net revenues over/under expenses on the annual general ledger detail provided did not agree to the year end profit and loss statement. The variance was due to checks that were voided after the profit and loss statement was generated but prior to the generation of the annual general ledger. The net revenue over/under expenses per the annual general ledger for the year ended December 31, 2008 was reconcilable to the bank reconciliation. The agreement between the Tour of Missouri, Inc. and the Missouri Division of Tourism includes an Appendix A which details process and procedures for financial activities. Included in that Appendix is a requirement that the Tour of Missouri, Inc. provide monthly income and expenditure reports to the Missouri Division of Tourism. As indicated above there were no profit/loss statements for four months.
Recommendations:
The Tour of Missouri, Inc. should implement internal control procedures to ensure contract compliance. The Division of Tourism should implement procedures to ensure contract provisions are monitored and verified.
1.
Procedure: Trace source of receipts to supporters and note if there was a contract with supporter. Results: We footed the cash receipt ledger provided to us and agreed the total to the total revenue on the financial statements. We traced each receipt on the cash receipt ledger to deposit documentation, except for 2 deposits. One deposit was made by phone transfer and totaled $5,974.81 and the other deposit totaled $675. All supporter contract contribution amounts did agree to their corresponding contributions made. One contract (Emerson) was silent as to the contribution amount. Additionally, many contributions received from Silver and Bronze sponsors had no sponsor contract on file. We noted several discrepancies in sponsor level designations between the sponsor contract, presentation in the Tour of Missouri brochure and the general ledger. See Exhibit D for identification of specific discrepancies identified.
See Exhibit F for a summary of cash receipts during 2008 by source of receipt.
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J. Procedure: Verify that contracts entered into are essential to support the event.
Results: Sponsor contracts (contributions) appear very essential to the event. Vendor contracts reviewed appear to be related to the management and operation of the TOM bike race. The outcome of a determination of whether a contract is "essential" to support the event would probably be very different depending upon who was responsible for making the determination. Recommendation: We would recommend that the details of allowed and allowable expenses be more clearly defined in the terms of the contract between the Division of Tourism and the Tour of Missouri, Inc. to allow for a more informed analysis of the contracts. We would also recommend that the contract between the Division of Tourism and the Tour of Missouri, Inc. include a detailed line item budget and the profit/loss statements be compared to the budget to allow for monitoring of budget compliance.
k. Procedure: Review if contracts with state agencies were entered into, what services were contracted for and if those services were received, and determine if contracts exist to cover in-kind expenses.
Results: The only contract that appears to be with a state agency is the contract between Tour of Missouri, Inc. and the Division of Tourism. The contract is for hosting the TOM bike race, which was accomplished. A few vendor contracts make note of providing in-kind services. We were unable to determine if in-kind services were provided, or by what state agencies, as there was little to no verification process and no amounts were reflected in the financial statements.
L
Procedure: Determine if subcontractor contracts exist and review for specific services. Results: We believe that subcontractors would represent those vendors who have contracted with Tour of Missouri, Inc. to provide specific goods or services in regards to the TOM bike race. These contracts were discussed at procedure c above.
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m. Procedure:
Review Tour by-laws and confirm compliance as it relates to salaries and conflicts. Results: The Tour's by-laws state that no director or officer is to be compensated unless the members otherwise agree in writing. Conflicts of interest are addressed on 3+ pages of the by-laws and appear to cover most any type of conflict. Any known conflict is to be disclosed according to procedures noted therein. No conflicts were disclosed in the records provided to us. 2.2.4
a. Procedure:
Determine if TOM has monitored and reviewed all financial transactions relating to the race. Results: As indicated in earlier procedures, we had requested a policy and procedure manual from the Tour of Missouri, Inc. and were advised that a manual has not been adopted. We would have expected to compare the monitoring procedures as detailed in the manual with the documented results and noted any exceptions. We were not able to perform this comparison.
b. Procedure: Determine if TOM has been responsible for keeping financial records for the race and provided monthly income and expenditure reports to the State.
Results: See results and recommendations detailed in procedures 2.2.3 h above. c. Procedure: Determine if TOM has utilized sound fiscal management practices to maximize the efficiency of the funds provided by the State and private parties.
Results: We did note that all funds are held at one financial institution in one account which is not an interest bearing account and, while balances at the beginning of the year and the end of the year are not significant, for a few months the balance was significant enough to generate some interest income.
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Recommendation:
As previously indicated in several procedures above, we would recommend that the Tour of Missouri, Inc. adopt detailed fiscal and management procedures and policies. These policies should include, but would not necessarily be limited to, procurement, reimbursement of expenses, whistle blower, conflict of interest, chart of accounts, contract approval, banking, fiduciary bonds, etc. We would also recommend the contract between the Tour of Missouri, Inc. and the Division of Tourism specifically outline all of the expectations against which contract performance will be judged and that those same performance standards apply to contracts entered into by the Tour of Missouri, Inc. for the annual bike race. We would recommend that the contract between the Tour of Missouri, Inc. and the Division of Tourism require the Tour of Missouri, Inc. to provide a detailed line item budget for the annual bike race and allow the Division of Tourism to approve the budget. The contract should address the consequences of budget to actual variances.
d. Procedure:
Determine if TOM has provided progress reports detailing the progress made toward completing implementation plans and future tasks to be accomplished to make the race a success.
Results: The copies of the monthly profit and loss statements provided us also contained a "Status Report" detailing function, date due, date finished, responsibility and status. It is our understanding that the Division of Tourism accepted these reports as satisfying the requirement to provide progress reports.
We were not engaged to, and did not; conduct an audit, the objective of which would be the expression of an opinion on the accounting records. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the State of Missouri, Office of Administration and is not intended to be and should not be used by anyone other than those specified parties.
EVERS & COMPANY CPA's LLC Jefferson City, MO September 29, 2009
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Exhibit A
TOUR OF MISSOURI CASH DISBURSEMENTS TESTING
YE 12/31108
THE FOLLOWING IS A LISTING OF EXCEPTIONS NOTED WHILE TRACING CASH DISBURSEMENTS TO SUPPORTING DOCUMENTATION: Check Number 1024 Check to Boys & Girls Club ($500) has no written check request form or written documentation.
1032 Check to Stacy Bloomberg ($1,280.96) not included on a a check request form
1033 Check to Jerry Dowell ($71.17) was not included on a check request form.
1041 Check request dated 8113108 is missing documentation for James Taylor ($303.08).
1048 Check to Linda Jackson ($1,000) has no check request form. There is other than an e-mail message with no amount noted.
no invoice or other documentatin
1053 Check request dated 8/15108 is missing documentation for US Treasury ($750). A copy of the
application for tax exempt status was not provided to us.
1072 Check request dated 8126108 noles
a paymenl to Bylery RV for
$7,508.63, bul invoices allached lotal $8,513.61.
1073 Check requesl dated 8127108 is miSsing documentation for Bylery RV ($2,500).
1074 Check requesl daled 8127108noles a paymenllo Cylcing for $7,508.63, .
bul documenlation atlached & the aClual check totals $425.00
1086 Check requesl daled 915108 is missing documentation for James Taylor ($10,000)
1087 Check request daled 915108 is missing documenlation for Corley Printing ($24,282.82)
1098 Check request dated 917108 is miSSing documentation for KCRDDF prize money ($5,000)
1105 Check request dated 917108 is missing documentation for Jennifer Taylor ($2,270)
1107 Check request dated 917108 is miSSing documenlation for Jeff Przybyla ($1,395)
1108 Check request dated 917108 is missing documentation for Jennifer Taylor ($100)
TOM advises the "$100 is 10 cover Ihe additional McGralh Ice Invoice". The tolal
paymenllo McGralh plus Ihe payment to Jennifer Taylor equals the total McGrath
invoice, however, there is no documentation indicating the payment was to be
allocated to Iwo vendors.
1114 Check request dated 9117108 ($220,821.55) but atlached documentation and actual check lolals ($733.97). 1120 Check request dated 9118108 is missing documenlation for James Taylor ($110.50) 1123 Check request daled 9118108 is missing documentation for George Fern ($1.870). 1129 Check request dated 9119108 has an amount of $34,440 for Mike Weiss - actual check & documenlalion was for $37,713.27. 1156 Check request daled 9130108 has an amounl for $1,000 for Cheerwine Cycling. There is no invoice or other documentation attached, other Ihan an e-mail copy wilh no amount nOled. 1208 Check request dated 10122108 the documentation for payment 10 Debra Lee ($287.01) is a copy of
print oUl showing a charge to a credit card. however, no detail on the purpose of the charge.
1212 Check request dated 10122108 is missing I of the 2 invoice copies for PInpoint tolal paymenl ($9,600). 1215 Check request dated 10122108 Jerry Dowell's expense reimbursment request ($393.61) is missing a receipt for airline lickels. 1261 Check requesl dated 1212108 contains Hertz invoices tolalling $118.42, but check was wrillen for $122.25. 1267 Check request dated 1212108 expense report ($411.20) for Jerry Dowell is missing receipts for 3 of the 7 items listed. 1270 Check request dated 12122108 is miSSing documentalion for KOM Sports Markeling ($20.000) 1276 Check request dated 12122108 is missing documenlalion for Tolal RF Productions ($75,000).
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Exhibit B
TOUR OF MISSOURI, INC. EXPENSES REIMBURSED TO MEDALIST SPORTS YE 12131108 CONSULTANT EXPENSES INSURANCE MILEAGE I VEHICLE EXP SUPPLIES POSTAGE I SHIPPING TELEPHONE TRAVEL & ENT UCI FEES CLOTHING - STAFF DESIGN JERSEY PRODUCTION MEDIA I PR SALARIES PHOTOGRAPHY PRESS CONFERENCE PRESS ROOM OPERATIONS SHIPPING AIRFARE CREDENTIALS EQUIP RACE OFFICE GAS & TOLLS GROUND TRAVEL MEALS - STAFF MEALS - DURING PARKING SALARY - OPS STAFF SALARY TRANS STAFF VEHICLE DAMAGE VEHICLE RENTAL VEHICLE SUPPLIES OTHER SALARIES SALARY - SITE DECOR SPONSOR I EVENT SIGNAGE CELL PHONES COMPETITION SUPPORT EQUIP MEDICAL CONTROL MEDICAL STAFF & SUPPLIES MOTOR SERVICES OFFICIALS FEES PRINTING - MANUALS RADIO TOUR ROUTING SURVEY SALARY-ANNOUNCER SALARY CARAVAN DIR & COOR SALARY - CARAVAN DRIVER SALARY - COMM CREW SALARY - EXPO COORDINATOR SALARY - FEED ZONE STAFF SALARY - OFFICIALS I TEAM SALARY - ROUTING & SIGN CREW SALARY SECURITY SALARY STAGE CREW SALARY - TECH (POLICE) SALARY - WHIPS START I FINISH EQUIP RENT TECHNICAL SUPPLIES CONSULTANT - VOLUNTEER COOR MARSHALL SUPPLIES SALARY - MARSHALS UNIDENTIFIED
$
41,386:16 63,677.00 748.93 294.42 176.94 8,066.57 4,279.60 150.00 988.03 400.00 764.48 10,555.00 6,000.00 4,307.33 9.99 3,935.23 95,599.86 1,100.28 421.70 20,350.18 337.30 51,585.00 1,432.39 297.00 7,221.00 4,800.00 148.28 6,171.59 690.00 3,160.00 5,575.50 5,450.00 176.00 932.92 472.00 12,845.00 32,197.00 9,189.00 481.38 2,360.00 905.92 13,259.00 3,959.00 4,838.00 2,006.00 6,500.01 1,652.00 1,59300 4,720.00 4,248.00 20,237.00 1,180.00 1,416.00 5,000.00 6,653.39 3,540.00 201.63 5,900.00
$ 498,449.63
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Exhibit C TOUR OF MISSOURI COMPARISON OF MONTHLY P&L BALANCES TO RECONCILED BANK BALANCES YE 12/31/08
Revenues> Expenses per TOM P&L
Reconciled bank balance
$
259,360.10 173,897.14 123,316.16
3/31/2008 4/30/2008 5/31/2008 6/30/2008 7/31/2008 8/29/2008 9/30/2008 11/1/2008 11/30/2008 12/31/2008
6/3012008 7/31/2008 8/31/2008 9/30/2008
$
98,274.17 1,126,921.79 894,478.19 931,528.53
103,121.41 1,128,365.39 906,482.62 782,749.61 276,561.15
12/2/2008 12/31/2008
108,658.89
101,249.19
$
32,167.93
31,847.91 320.02 #1179 voided 1,127.57 #1021 voided 336.00 #1260 voided ---...::....::-;...;;....;
$
12/31/2008 per
GIL
$
33,631.50
.50
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Exhibit 0 TOUR OF MISSOURI FINDINGS - CASH RECEIPTS YE 12/31/08
OUR REVIEW OF CASH RECEIPTS YIELDED THE FOLLOWING FINDINGS: 1) We noted variations in sponsorship levels as follows - Bissell was designated as a Bronze sponsor in the general ledger and in the TOM brochure, but no such designation was noted in the contract copy. - Edward Jones was designated as a Gold sponsor in the general ledger and in the TOM brochure, but was designated as a Silver sponsor in their contract copy. - AT&T was designated as a Bronze sponsor in the general ledger and in the TOM brochure, but had no contract on file. - THF Realty was designated as a Bronze sponsor in the general ledger and in the TOM brochure, but had no contract on file. Wind Capital Group was designated as a Silver sponsor in the general ledger and in the TOM brochure, but had no contract on file. Cerner was designated as a Silver sponsor in the general ledger and in the TOM brochure, but had no contract on file. Ameren UE was designated as a Bronze sponsor in the general ledger and in the TOM brochure, but had no contract on file. Vi-Jon was designated as a Tour Partner in the general ledger, a Bronze sponsor in their sponsor contract & a Supplier in the TOM brochure. AgriMissouri was designated as a Bronze sponsor in the general ledger and in the TOM brochure, but was designated as a Silver sponsor in their contract copy. National City Bank was designated as a Bronze sponsor in the general ledger and in the TOM brochure, but had no contract on file. Missouri Partnership (MOPAR) was designated as a Silver sponsor in the general ledger and in the TOM brochure, but had no contract on file. 2) No deposit detail 1 check copies accompanied the deposits on 5/20/08,10/31/08 & 11/7108. 3) No deposit detail was provided on the 6118/08 telephone transfer. 4) We noted several instances of checks being deposited after a Significant time lag, sometimes over one month from the check date. 5) All sponsor contribution amounts were agreed to their sponsor contract copies, except for those with no contract on file. The Emerson Electric sponsor contract was silent as to a contribution amount. 15
Exhibit E Tour of Missouri. Inc. Payments> $10,000 1 No Vendor Contract on File 12/31/2008
ALL CUSTOM VISION SCREEN PRINTING CORLEY PRINTING APEX COMMUNICATIONS KING OF MOUNTAIN SPORTS MARKETING CISION JAMES TAYLOR TOTAL RF PRODUCTIONS ,
MOBILE EDGE
USA CYCLING
J. BUCKS MARSHALL AUSTIN PRODUCTIONS BYLERYRV CREATIVE EVENTS HERTZ CAT ENTERTAINMENT REVERSE ST. LOUIS POST-DISPATCH THE SPARK AGENCY DDI MEDIA ENTERPRISE RENT -A-CAR
KANSAS CITY STAR
PENSKE TRUCK LEASING
INSIDE COMMUNICATIONS
SIGN-A-RAMA
KMOVTV
$ 58,141.95 51,771.55 57,988.30 26,250.00 32,814.62 12,646.93 26,016.03 77,639.43 14,187.11 10,555.00 20,000.00 53,700.00 10,008.63 51,200.00 52,963.68 30,000.00 20,749.00 16,449.91 17,415.43 16,000.00 10,403.23 15,000.00 14,797.73 17,500.00 13,067.53 18,000.00 $ 745,266.06
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Exhibit F
Tour of Missouri, Inc. Summary of Cash Receipts
YE 12/31/08
The following is a summary of deposits by source made into the checking account for the year ended 12/31/08 State of Missouri - Division of Tourism Department of Agriculture Missouri Development Finance Board **State of Missouri Gold Sponsors Farm Bureau
Drury Inn
Edward Jones
Monsanto
Emerson Electric
Anheuser Busch
Silver Sponsors Wind Capital Group, LLC Cerner Osborn & Barr Bronze Sponsors
Bissell
AT&T
Michael Staenberg 1THF Realty
Associated Electric Cooperative
Rodgers / Townsend
National City Corporation
Tour Partner
Team Fees
Donations for st. Charles event
Expo Participation
Public Sales
LOC/Sponsor Sales
Merchandise
Other
Hawthorn Foundation
$ 1,709,794.00
15,000.00 500,000.00 50,000.00 100,000.00 75,000.00 100,000.00 100,000.00 100,000.00 50,000.00 25,000.00 25,000.00 50,000.00 20,000.00 25,000.00 25,000.00 27,000.00 15,000.00 31,000.00 58,000.00 63,000.00 49,000.00 11,025.00 10,620.00 13,095.02 10,037.49 8,692.28 5,974.81 $ 3,272,238.60
** $25,000 deposited on 11-7-08 and included in cash receipt questions deposit record does not include supporting documentation, receipt coded to Agri Missouri by TOM.
17
Independent Accountants' Report
On Applying Agreed-Upon Procedures
December 31, 2008
Evers & Cotnpany, CPA's, L.L.C.
Certified Public Accountants and Consultants
Elmer l. Evers Jerome l. Kauffman Richard E. Elliott Dale A. Siebeneck Keith l. Taylor Jo l. Moore
INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES
State of Missouri Office of Administration Commissioner's Office State Capitol, Room 125 201 W. Capital Ave. Jefferson City, MO 65102
We have performed the procedures enumerated below, which were agreed to by the State of Missouri - Office of Administration solely to assist you with respect to the accounting records of Tour of Missouri, Inc.(TOM) for the year ended December 31,2008. TOM's management is responsible for its accounting records. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. Our procedures and findings are as follows and are referenced in accordance with the
request for proposal:
2.2.3
a. Procedure:
Verify the need for wire transfers and trace to vendor and contract.
b. Procedure: Trace non-wire disbursements to the associated vendor and contracts.
520 Dix Road • JeHerson City, Missouri 65109 • 573/635-0227 • FAX 573/634-3764
Village Green Shopping Center • 1021 W. Buchanan Street, Ste. 10 • California, Missouri 65018 • 573/796-3210 • FAX 573/796-3452
4571 Hwy. 54, Suite A • Osage Beach, Missouri 65065 • 573/348-4141 • FAX 573/348-0989
Member4!1!!Affiliated Offices Worldwide
""~
Results: We found no contract stipulations requmng payments to be made by wire transfer. The 2008 cash disbursement ledger included 282 checks and 36 wire transfers. Of these disbursements, we noted 27 payments to vendors with no or insufficient documentation (9%). See attached Exhibit A for a listing of the 27 instances of insufficient documentation. Insufficient documentation consists of either no vendor invoice or receipt for reimbursement or the information included on the check request form was not consistent with the supporting documentation. A policy and procedure manual was not provided to us by TOM which would have allowed us to determine if the procedures we were able to observe were consistent with the established policies. There was no support documentation for the following eleven checks: 1034, 1035, 1079, 1082, 1096, 1138, 1141, 1207, 1221, 1237 and 1248. A review of the bank statements revealed that these checks had not cleared the bank as of December 31, 2008. It is presumed that these checks were voided. The remaining 280 payments were traceable to: a contract, an invoice or an expense reimbursement request. c. Procedure: Verify that all disbursements are in accordance with the applicable contract(s). Results: The following contracts (or excerpts thereof) were provided to us and identified by the provider as vendor contracts: Hawthorn Foundation, Pinpoint, Medalist Sports, LLC, AVF Creations, Mike Weiss for expo sponsorship sales and Mike Weiss for acquisition of corporate sponsorships, Gorski Services, Hyatt Regency, Grote and Associates for 2008 Gala, Grote and Associates for 2009 LOC Prospects, Grote and Associates for 2008 Breakaway Club, Versus, MapMyFitness, Phoenix Sports, Madden Media, Visible Display, Kent Gordis Productions, All Seasons, IFM Sports, Price Stevenson Acoustic Research, Vitrue, Inc., Event Management Specialists, Inc:, Clark Sheehan Productions, LLC, All Custom Apparel, Golden Corral. Payments to the following six vendors agreed without exception to the vendor contracts; AVF, Clark Sheehan, Event Management Specialists, IFM Sports, MapMyFitness and Vitrue. Payments to Price Stevenson Acoustic, Phoenix Sports Tech and Visible Display agreed to the contract but the terms of the contracts were inconsistent. All three of these contracts had contract effective dates in August, 2008, however, the contract term ended September 16,2007. The exhibits attached to the contract for Visible Display and Price Stevenson Acoustic indicated the services were for the 2008 Tour. The exhibits attached to the contract for Phoenix Sports Tech referenced both the 2008 and the 2007 Tour. 2
Payments to Kent Gordis and All Seasons exceeded the original contract amount and the contract does not address the process for change orders, etc. Invoices were presented by the vendor in support of the additional payment. The approval process for the additional amounts was not documented on the supporting information. The contract with Versus states it is an agreement between Hawthorn Foundation/Missouri Division of Tourism and Versus and was to produce a two hour program entitled 2007 Tour of Missouri. The total payments to Versus in 2008 exceeded this contract. Invoices were presented by the vendor in support of the total amounts paid to Versus. Some of the service dates on the invoices are outside of the contract dates. It is unclear if all of the payments relate to the 2008 contract. All three contracts with Grote & Associates provide for a compensation amount plus additional compensation based on performance results and reimbursement of reasonable and approved expenses. The invoice submitted by the vendor and the only payment identified in 2008 included ~ of the agreed upon compensation for one contract and the total agreed upon compensation for the other two contracts and expense reimbursements. The information provided to us did not include an invoice for the other ~ of the agreed upon compensation or for additional compensation based on perfonnance results. The contract with Mike Wiess provided for reimbursement of travel, a meal stipend and transportation, a base "salary" and commissions based on sales. Amounts paid to Mike Wiess included 3 of an agreed upon 11 months of compensation, reimbursement of expenses and commissions. The base amount of the sponsorship on which the commission was based was traced to the sponsorship records. Three of the five commissions billed agreed to the sponsorship payment. The net variance relating to the other two sponsorships resulted in an overpayment of commissions of $975. The contract with Golden Corral included a base price plus fees. The invoice provided for the total payment did not detail the calculation of the fees in excess of the stated amount. The contract with Pinpoint allowed for a commISSIon based on sponsorship agreements procured by Pinpoint. Payments totaling $18,600 were made to Pinpoint. The sponsorship documentation provided to us confirmed $9,000 of that total payment. We do not have information regarding the other sponsor(s) to be able to recalculate the balance of the payment made to Pinpoint. .
3
The contract with Medalist Sports, LLC included a provision for a management fee plus reimbursement of expenses. The contract indicated an exhibit was to be included providing detail of operating line items and reimbursable expenses. This exhibit was not provided to us. We did request the information from the Tour of Missouri and as of the date of this letter none has been received. The contract with Medalist Sports, LLC also stated that the Tour of Missouri, Inc. will not reimburse Medalist for travel expenses unless such travel has the prior written approval of the Tour of Missouri, Inc. The documentation provided to us did not provide sufficient detail to allow us to confirm the prior written approval. Tour of Missouri, Inc. has advised that the internal procedure was to verbally approve these expenses. The attached Exhibit B summarizes how the Tour of Missouri, Inc. categorized the payments to Medalist Sports into various expense categories in the general ledger. There are several categories that include travel related expenses. No disbursements were identified as being issued to the following vendors; Mark
Gorski and Madden Media.
We also identified payments to 26 different vendors of $10,000 or more that we were not able to trace to a vendor contract. See Exhibit E for a listing of these vendors. Note that none of these vendors are included in the description at the beginning of this procedure that details all of the contracts provided to us. These payments totaled $745,266.06. Except for the items identified in Exhibit A, all payments were supported by an invoice from the vendor. The Hyatt Regency contract will be addressed later in the section that addresses lodging and banquet contracts. A number of the contracts included a provision that TOM had the right to pre approve expenses before they were incurred and then subsequently paid. We were not able to confirm whether that approval process happened. Also a number of contracts included a reference to an attached exhibit detailing a budget and those budget exhibits were not included in the copies of the contracts provided to us. The contract with All Custom Apparel is a trademark license agreement and allows All Custom Apparel to use the TOM logo on apparel. It also requires All Custom to pay a royalty fee to the TOM based upon a percentage of sales of licensed products. Tour of Missouri, Inc. paid $58,141.95 to All Custom Apparel for purchase of apparel to be used by staff and participants in the race. Tour of Missouri, Inc. received $8,905.89 royalties from All Custom Apparel. The only documentation for this payment was a photocopy of the check from All Custom which noted "royalties through 10/31/08".
4
The following contracts were provided to us and identified by the provider as Lodging Contracts; Hilton Kansas City Airport, Hampton Inn St. Charles, Holiday Inn Select, Fairfield Inn, Embassy Suites, Quality Inn, Drury Inn St. Joseph, Drury Plaza Hotel, Hampton Inn St. Louis, Pear Tree Inn, Drury Inn Union Station, Drury Inn Kansas City Airport, Drury Inn St. Peters, Drury Inn Rolla, Drury Inn Springfield, Hyatt Regency. All of these agreements with the exception of Hyatt Regency, Holiday Inn Select and Hilton Kansas City Airport were strictly for lodging. The quotes in the lodging agreements were for the availability of a maximum number of rooms at a quoted price. The agreements with Hyatt Regency, Holiday Inn Select and Hilton Kansas City Airport included food and beverage provisions. Again, these quotes were for a maximum number of participants to .be served at a quoted price. We compared the total payments to the entity to the provisions in the agreement. There were no payments identified to Holiday Inn Select or Hampton Inn St. Charles. The total payment amounts were within the provisions of the agreements. Recommendation: The Tour of Missouri, Inc. should implement internal control procedures to ensure that all contracts contain all exhibits and schedules that are included in the contract. Also, procedures should be implemented to ensure that contract compliance is verified prior to payments being processed. The verification process needs to be documented in a manner that can be subsequently confirmed. d. Procedure: Review variances between contract and actual payments made to vendor. Results: See comments in procedure c above. e. Procedure: Evaluate the reasonableness of vendor payments provided / service received.
ill
relation to the product
Results: Most vendor payments were supported by either an invoice or a contract. We asked for a copy of the Tour of Missouri, Inc.'s policy and procedure manual to obtain an understanding of their adopted fiscal policies. We have been advised that a policy and procedure manual has not been adopted by the Tour of Missouri, Inc. We would have expected to be able to compare the procurement procedure
5
with policies and comment exceptions, if any. As noted in procedure c above there were payments to several vendors for whom no vendor contract was provided. We did review the comparison of 2008 actual income and expenses to the 2008 annual budget. Total expenses were under budget by $90,098.
Recommendation: We would recommend a fiscal policy and procedure manual be adopted and that the Division of Tourism include in their contract with the Tour of Missouri, Inc. their expectations with regard to vendor negotiations. Items such as, but not necessarily limited to, an expectation that the Tour of Missouri, Inc. adopt the State of Missouri procurement policies could be included in the contract.
f. Procedure: Verify that meal and lodging reimbursements are in accordance with CONUS guidelines and document variances.
Results: Meal and lodging reimbursements were made to both the Executive Director and Project Manager for the Tour of Missouri, Inc. and to Medalist Sports, LLC for their employees. The payments to the Executive Director and the Project Manager were tested as part of the procedures listed in procedure a and b above. There were a few isolated instances of missing receipts. As indicated in procedure e above we requested a copy of the Tour of Missouri, Inc.' s policy and procedure manuaL We would have expected to see a section devoted to policies on allowable expense reimbursements. Absent any policy to the contrary, we compared the reimbursement to the receipt and noted no exception other than the few instances of missing receipts. Recommendation:
We would recommend the fiscal policy and procedure manual as mentioned in procedure e above also include policies regarding staff expense reimbursements.
Results: For the expense reimbursements submitted by Medalist Sports, LLC we selected a sample of reimbursement requests and noted that most all expenses were supported by receipt documentation. However, a few reimbursements appear to be in excess of the State's per diem allowance. The agreement with Medalist Sports states that "all travel, lodging or meal reimbursement shall be subject to the extent practicable to the per diem limits established by the policies of the
6
State of Missouri". Of the meal expenses that we tested, many were supported by receipts that were unclear as to the number of people covered by the receipt or as to the location of the meal. Some of the receipts were illegible.. Accordingly, these expenditures could not be compared. The dollar amount of variances was not computed or totaled due to the aforementioned reasons. Also, as noted in procedure c above, the contract between Tour of Missouri, Inc. and Medalist Sports, LLC requires written preapproval by TOM for reimbursement of travel expenses. Documentation confirming the written preapproval process was not provided to us, therefore, we were unable to verify the preapproval process.
Recommendation:
As indicated in procedure c above, a procedure should be implemented to verify that the terms of the contract are met prior to issuance of the payment and the preapproval process should be documented so that the process can be independently verified.
g. Procedure:
Ensure that employee expense account reimbursements are for necessary and actual expenses incurred.
Results: See comments in procedure f above.
h. Procedure:
Reconcile profit and loss statements to bank statements and note any discrepancies.
Results: See attached Exhibit C for a schedule comparing monthly profit and loss balances to the balances on the bank reconciliations. The Tour's records forwarded to us contained no profit/loss statements for March, April, May, or October. The March bank statement indicated that there was no beginning balance which would indicate that there had been no transactions in the prior month. We were not provided information regarding when this bank account was established. The bank reconciliations appeared to have been generated through the Quickbooks
7
software. The profit and loss statements appear to have been generated via an excel spreadsheet. The statements appear to be prepared on the cash basis method of accounting, therefore, the reconciled bank balance should equal the net revenue over/under expenses for the same period of time and they did not. The net revenues over/under expenses on the annual general ledger detail provided did not agree to the year end profit and loss statement. The variance was due to checks that were voided after the profit and loss statement was generated but prior to the generation of the annual general ledger. The net revenue over/under expenses per the annual general ledger for the year ended December 31, 2008 was reconcilable to the bank reconciliation. The agreement between the Tour of Missouri, Inc. and the Missouri Division of Tourism includes an Appendix A which details process and procedures for financial activities. Included in that Appendix is a requirement that the Tour of Missouri, Inc. provide monthly income and expenditure reports to the Missouri Division of Tourism. As indicated above there were no profit/loss statements for four months.
Recommendations:
The Tour of Missouri, Inc. should implement internal control procedures to ensure contract compliance. The Division of Tourism should implement procedures to ensure contract provisions are monitored and verified.
1.
Procedure: Trace source of receipts to supporters and note if there was a contract with supporter. Results: We footed the cash receipt ledger provided to us and agreed the total to the total revenue on the financial statements. We traced each receipt on the cash receipt ledger to deposit documentation, except for 2 deposits. One deposit was made by phone transfer and totaled $5,974.81 and the other deposit totaled $675. All supporter contract contribution amounts did agree to their corresponding contributions made. One contract (Emerson) was silent as to the contribution amount. Additionally, many contributions received from Silver and Bronze sponsors had no sponsor contract on file. We noted several discrepancies in sponsor level designations between the sponsor contract, presentation in the Tour of Missouri brochure and the general ledger. See Exhibit D for identification of specific discrepancies identified.
See Exhibit F for a summary of cash receipts during 2008 by source of receipt.
8
J. Procedure: Verify that contracts entered into are essential to support the event.
Results: Sponsor contracts (contributions) appear very essential to the event. Vendor contracts reviewed appear to be related to the management and operation of the TOM bike race. The outcome of a determination of whether a contract is "essential" to support the event would probably be very different depending upon who was responsible for making the determination. Recommendation: We would recommend that the details of allowed and allowable expenses be more clearly defined in the terms of the contract between the Division of Tourism and the Tour of Missouri, Inc. to allow for a more informed analysis of the contracts. We would also recommend that the contract between the Division of Tourism and the Tour of Missouri, Inc. include a detailed line item budget and the profit/loss statements be compared to the budget to allow for monitoring of budget compliance.
k. Procedure: Review if contracts with state agencies were entered into, what services were contracted for and if those services were received, and determine if contracts exist to cover in-kind expenses.
Results: The only contract that appears to be with a state agency is the contract between Tour of Missouri, Inc. and the Division of Tourism. The contract is for hosting the TOM bike race, which was accomplished. A few vendor contracts make note of providing in-kind services. We were unable to determine if in-kind services were provided, or by what state agencies, as there was little to no verification process and no amounts were reflected in the financial statements.
L
Procedure: Determine if subcontractor contracts exist and review for specific services. Results: We believe that subcontractors would represent those vendors who have contracted with Tour of Missouri, Inc. to provide specific goods or services in regards to the TOM bike race. These contracts were discussed at procedure c above.
9
m. Procedure:
Review Tour by-laws and confirm compliance as it relates to salaries and conflicts. Results: The Tour's by-laws state that no director or officer is to be compensated unless the members otherwise agree in writing. Conflicts of interest are addressed on 3+ pages of the by-laws and appear to cover most any type of conflict. Any known conflict is to be disclosed according to procedures noted therein. No conflicts were disclosed in the records provided to us. 2.2.4
a. Procedure:
Determine if TOM has monitored and reviewed all financial transactions relating to the race. Results: As indicated in earlier procedures, we had requested a policy and procedure manual from the Tour of Missouri, Inc. and were advised that a manual has not been adopted. We would have expected to compare the monitoring procedures as detailed in the manual with the documented results and noted any exceptions. We were not able to perform this comparison.
b. Procedure: Determine if TOM has been responsible for keeping financial records for the race and provided monthly income and expenditure reports to the State.
Results: See results and recommendations detailed in procedures 2.2.3 h above. c. Procedure: Determine if TOM has utilized sound fiscal management practices to maximize the efficiency of the funds provided by the State and private parties.
Results: We did note that all funds are held at one financial institution in one account which is not an interest bearing account and, while balances at the beginning of the year and the end of the year are not significant, for a few months the balance was significant enough to generate some interest income.
10
Recommendation:
As previously indicated in several procedures above, we would recommend that the Tour of Missouri, Inc. adopt detailed fiscal and management procedures and policies. These policies should include, but would not necessarily be limited to, procurement, reimbursement of expenses, whistle blower, conflict of interest, chart of accounts, contract approval, banking, fiduciary bonds, etc. We would also recommend the contract between the Tour of Missouri, Inc. and the Division of Tourism specifically outline all of the expectations against which contract performance will be judged and that those same performance standards apply to contracts entered into by the Tour of Missouri, Inc. for the annual bike race. We would recommend that the contract between the Tour of Missouri, Inc. and the Division of Tourism require the Tour of Missouri, Inc. to provide a detailed line item budget for the annual bike race and allow the Division of Tourism to approve the budget. The contract should address the consequences of budget to actual variances.
d. Procedure:
Determine if TOM has provided progress reports detailing the progress made toward completing implementation plans and future tasks to be accomplished to make the race a success.
Results: The copies of the monthly profit and loss statements provided us also contained a "Status Report" detailing function, date due, date finished, responsibility and status. It is our understanding that the Division of Tourism accepted these reports as satisfying the requirement to provide progress reports.
We were not engaged to, and did not; conduct an audit, the objective of which would be the expression of an opinion on the accounting records. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the State of Missouri, Office of Administration and is not intended to be and should not be used by anyone other than those specified parties.
EVERS & COMPANY CPA's LLC Jefferson City, MO September 29, 2009
11
Exhibit A
TOUR OF MISSOURI CASH DISBURSEMENTS TESTING
YE 12/31108
THE FOLLOWING IS A LISTING OF EXCEPTIONS NOTED WHILE TRACING CASH DISBURSEMENTS TO SUPPORTING DOCUMENTATION: Check Number 1024 Check to Boys & Girls Club ($500) has no written check request form or written documentation.
1032 Check to Stacy Bloomberg ($1,280.96) not included on a a check request form
1033 Check to Jerry Dowell ($71.17) was not included on a check request form.
1041 Check request dated 8113108 is missing documentation for James Taylor ($303.08).
1048 Check to Linda Jackson ($1,000) has no check request form. There is other than an e-mail message with no amount noted.
no invoice or other documentatin
1053 Check request dated 8/15108 is missing documentation for US Treasury ($750). A copy of the
application for tax exempt status was not provided to us.
1072 Check request dated 8126108 noles
a paymenl to Bylery RV for
$7,508.63, bul invoices allached lotal $8,513.61.
1073 Check requesl dated 8127108 is miSsing documentation for Bylery RV ($2,500).
1074 Check requesl daled 8127108noles a paymenllo Cylcing for $7,508.63, .
bul documenlation atlached & the aClual check totals $425.00
1086 Check requesl daled 915108 is missing documentation for James Taylor ($10,000)
1087 Check request daled 915108 is missing documenlation for Corley Printing ($24,282.82)
1098 Check request dated 917108 is miSSing documentation for KCRDDF prize money ($5,000)
1105 Check request dated 917108 is missing documentation for Jennifer Taylor ($2,270)
1107 Check request dated 917108 is miSSing documenlation for Jeff Przybyla ($1,395)
1108 Check request dated 917108 is missing documentation for Jennifer Taylor ($100)
TOM advises the "$100 is 10 cover Ihe additional McGralh Ice Invoice". The tolal
paymenllo McGralh plus Ihe payment to Jennifer Taylor equals the total McGrath
invoice, however, there is no documentation indicating the payment was to be
allocated to Iwo vendors.
1114 Check request dated 9117108 ($220,821.55) but atlached documentation and actual check lolals ($733.97). 1120 Check request dated 9118108 is missing documenlation for James Taylor ($110.50) 1123 Check request daled 9118108 is missing documentation for George Fern ($1.870). 1129 Check request dated 9119108 has an amount of $34,440 for Mike Weiss - actual check & documenlalion was for $37,713.27. 1156 Check request daled 9130108 has an amounl for $1,000 for Cheerwine Cycling. There is no invoice or other documentation attached, other Ihan an e-mail copy wilh no amount nOled. 1208 Check request dated 10122108 the documentation for payment 10 Debra Lee ($287.01) is a copy of
print oUl showing a charge to a credit card. however, no detail on the purpose of the charge.
1212 Check request dated 10122108 is missing I of the 2 invoice copies for PInpoint tolal paymenl ($9,600). 1215 Check request dated 10122108 Jerry Dowell's expense reimbursment request ($393.61) is missing a receipt for airline lickels. 1261 Check requesl dated 1212108 contains Hertz invoices tolalling $118.42, but check was wrillen for $122.25. 1267 Check request dated 1212108 expense report ($411.20) for Jerry Dowell is missing receipts for 3 of the 7 items listed. 1270 Check request dated 12122108 is miSSing documentalion for KOM Sports Markeling ($20.000) 1276 Check request dated 12122108 is missing documenlalion for Tolal RF Productions ($75,000).
12
Exhibit B
TOUR OF MISSOURI, INC. EXPENSES REIMBURSED TO MEDALIST SPORTS YE 12131108 CONSULTANT EXPENSES INSURANCE MILEAGE I VEHICLE EXP SUPPLIES POSTAGE I SHIPPING TELEPHONE TRAVEL & ENT UCI FEES CLOTHING - STAFF DESIGN JERSEY PRODUCTION MEDIA I PR SALARIES PHOTOGRAPHY PRESS CONFERENCE PRESS ROOM OPERATIONS SHIPPING AIRFARE CREDENTIALS EQUIP RACE OFFICE GAS & TOLLS GROUND TRAVEL MEALS - STAFF MEALS - DURING PARKING SALARY - OPS STAFF SALARY TRANS STAFF VEHICLE DAMAGE VEHICLE RENTAL VEHICLE SUPPLIES OTHER SALARIES SALARY - SITE DECOR SPONSOR I EVENT SIGNAGE CELL PHONES COMPETITION SUPPORT EQUIP MEDICAL CONTROL MEDICAL STAFF & SUPPLIES MOTOR SERVICES OFFICIALS FEES PRINTING - MANUALS RADIO TOUR ROUTING SURVEY SALARY-ANNOUNCER SALARY CARAVAN DIR & COOR SALARY - CARAVAN DRIVER SALARY - COMM CREW SALARY - EXPO COORDINATOR SALARY - FEED ZONE STAFF SALARY - OFFICIALS I TEAM SALARY - ROUTING & SIGN CREW SALARY SECURITY SALARY STAGE CREW SALARY - TECH (POLICE) SALARY - WHIPS START I FINISH EQUIP RENT TECHNICAL SUPPLIES CONSULTANT - VOLUNTEER COOR MARSHALL SUPPLIES SALARY - MARSHALS UNIDENTIFIED
$
41,386:16 63,677.00 748.93 294.42 176.94 8,066.57 4,279.60 150.00 988.03 400.00 764.48 10,555.00 6,000.00 4,307.33 9.99 3,935.23 95,599.86 1,100.28 421.70 20,350.18 337.30 51,585.00 1,432.39 297.00 7,221.00 4,800.00 148.28 6,171.59 690.00 3,160.00 5,575.50 5,450.00 176.00 932.92 472.00 12,845.00 32,197.00 9,189.00 481.38 2,360.00 905.92 13,259.00 3,959.00 4,838.00 2,006.00 6,500.01 1,652.00 1,59300 4,720.00 4,248.00 20,237.00 1,180.00 1,416.00 5,000.00 6,653.39 3,540.00 201.63 5,900.00
$ 498,449.63
13
Exhibit C TOUR OF MISSOURI COMPARISON OF MONTHLY P&L BALANCES TO RECONCILED BANK BALANCES YE 12/31/08
Revenues> Expenses per TOM P&L
Reconciled bank balance
$
259,360.10 173,897.14 123,316.16
3/31/2008 4/30/2008 5/31/2008 6/30/2008 7/31/2008 8/29/2008 9/30/2008 11/1/2008 11/30/2008 12/31/2008
6/3012008 7/31/2008 8/31/2008 9/30/2008
$
98,274.17 1,126,921.79 894,478.19 931,528.53
103,121.41 1,128,365.39 906,482.62 782,749.61 276,561.15
12/2/2008 12/31/2008
108,658.89
101,249.19
$
32,167.93
31,847.91 320.02 #1179 voided 1,127.57 #1021 voided 336.00 #1260 voided ---...::....::-;...;;....;
$
12/31/2008 per
GIL
$
33,631.50
.50
14
Exhibit 0 TOUR OF MISSOURI FINDINGS - CASH RECEIPTS YE 12/31/08
OUR REVIEW OF CASH RECEIPTS YIELDED THE FOLLOWING FINDINGS: 1) We noted variations in sponsorship levels as follows - Bissell was designated as a Bronze sponsor in the general ledger and in the TOM brochure, but no such designation was noted in the contract copy. - Edward Jones was designated as a Gold sponsor in the general ledger and in the TOM brochure, but was designated as a Silver sponsor in their contract copy. - AT&T was designated as a Bronze sponsor in the general ledger and in the TOM brochure, but had no contract on file. - THF Realty was designated as a Bronze sponsor in the general ledger and in the TOM brochure, but had no contract on file. Wind Capital Group was designated as a Silver sponsor in the general ledger and in the TOM brochure, but had no contract on file. Cerner was designated as a Silver sponsor in the general ledger and in the TOM brochure, but had no contract on file. Ameren UE was designated as a Bronze sponsor in the general ledger and in the TOM brochure, but had no contract on file. Vi-Jon was designated as a Tour Partner in the general ledger, a Bronze sponsor in their sponsor contract & a Supplier in the TOM brochure. AgriMissouri was designated as a Bronze sponsor in the general ledger and in the TOM brochure, but was designated as a Silver sponsor in their contract copy. National City Bank was designated as a Bronze sponsor in the general ledger and in the TOM brochure, but had no contract on file. Missouri Partnership (MOPAR) was designated as a Silver sponsor in the general ledger and in the TOM brochure, but had no contract on file. 2) No deposit detail 1 check copies accompanied the deposits on 5/20/08,10/31/08 & 11/7108. 3) No deposit detail was provided on the 6118/08 telephone transfer. 4) We noted several instances of checks being deposited after a Significant time lag, sometimes over one month from the check date. 5) All sponsor contribution amounts were agreed to their sponsor contract copies, except for those with no contract on file. The Emerson Electric sponsor contract was silent as to a contribution amount. 15
Exhibit E Tour of Missouri. Inc. Payments> $10,000 1 No Vendor Contract on File 12/31/2008
ALL CUSTOM VISION SCREEN PRINTING CORLEY PRINTING APEX COMMUNICATIONS KING OF MOUNTAIN SPORTS MARKETING CISION JAMES TAYLOR TOTAL RF PRODUCTIONS ,
MOBILE EDGE
USA CYCLING
J. BUCKS MARSHALL AUSTIN PRODUCTIONS BYLERYRV CREATIVE EVENTS HERTZ CAT ENTERTAINMENT REVERSE ST. LOUIS POST-DISPATCH THE SPARK AGENCY DDI MEDIA ENTERPRISE RENT -A-CAR
KANSAS CITY STAR
PENSKE TRUCK LEASING
INSIDE COMMUNICATIONS
SIGN-A-RAMA
KMOVTV
$ 58,141.95 51,771.55 57,988.30 26,250.00 32,814.62 12,646.93 26,016.03 77,639.43 14,187.11 10,555.00 20,000.00 53,700.00 10,008.63 51,200.00 52,963.68 30,000.00 20,749.00 16,449.91 17,415.43 16,000.00 10,403.23 15,000.00 14,797.73 17,500.00 13,067.53 18,000.00 $ 745,266.06
16
Exhibit F
Tour of Missouri, Inc. Summary of Cash Receipts
YE 12/31/08
The following is a summary of deposits by source made into the checking account for the year ended 12/31/08 State of Missouri - Division of Tourism Department of Agriculture Missouri Development Finance Board **State of Missouri Gold Sponsors Farm Bureau
Drury Inn
Edward Jones
Monsanto
Emerson Electric
Anheuser Busch
Silver Sponsors Wind Capital Group, LLC Cerner Osborn & Barr Bronze Sponsors
Bissell
AT&T
Michael Staenberg 1THF Realty
Associated Electric Cooperative
Rodgers / Townsend
National City Corporation
Tour Partner
Team Fees
Donations for st. Charles event
Expo Participation
Public Sales
LOC/Sponsor Sales
Merchandise
Other
Hawthorn Foundation
$ 1,709,794.00
15,000.00 500,000.00 50,000.00 100,000.00 75,000.00 100,000.00 100,000.00 100,000.00 50,000.00 25,000.00 25,000.00 50,000.00 20,000.00 25,000.00 25,000.00 27,000.00 15,000.00 31,000.00 58,000.00 63,000.00 49,000.00 11,025.00 10,620.00 13,095.02 10,037.49 8,692.28 5,974.81 $ 3,272,238.60
** $25,000 deposited on 11-7-08 and included in cash receipt questions deposit record does not include supporting documentation, receipt coded to Agri Missouri by TOM.
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