Missouri State Auditor Nicole Galloway has released audits of eight license offices across the state, with most offices receiving an overall performance rating of good, with two offices receiving fair ratings and only the Salem License Office receiving an excellent rating, the highest rating available.
"When we think about a trip to a license office, we see how these facilities are often held up as examples of government inefficiency - relegated to a punchline," auditor Galloway said. "That's why I'm so pleased to see effective, efficient operations in practice, and I want to commend the Salem License Office in Dent County for receiving an excellent rating, with no findings identified in the audit."
According to a press release from the Missouri State Auditor’s Office, this is only the second time a license office has earned an excellent rating since state law was amended to allow audits of contract license offices. Forty-five license offices have been audited since license office audits began in 2011.
An excellent rating stipulates, “the audit results indicate this entity is very well managed. The report contains no findings. In addition, if applicable, prior recommendations have been implemented.”
The Salem License Office’s audit indicates since for the year ended June 30, 2016, the office collected and remitted $3,426,180 to the Missouri Department of Revenue, and retained processing fees totaling $102,800. Under the terms of the contract, the office was not required to return a percentage of its processing fees to the state.
The Salem License Office also raised $41 for charitable donations including World War I Memorial Trust fund, and for the organ donor and blindness awareness programs.
The most common finding among the license offices audited included concerns related to voiding transactions. When a transaction has to be voided after it is entered in the system but before payment is made, a supervisor is expected to review the canceled action and then, in some instances, the customer must sign a document acknowledging the transaction was canceled. In half of the offices surveyed, all necessary steps were not being taken. Other common findings related to accurately recording methods of payment and ensuring appropriate sales tax amounts were paid on vehicles registered through the license offices.
"From issuing license plates to processing driver licenses, vehicle registrations and car titles, license offices provide direct services to Missourians across the state," auditor Galloway said. "That's why I'm pleased to share the results of audits that show how good management practices lead to efficient and effective operations in these facilities. Certainly, we did identify areas for improvement, but I am hopeful that these license offices, along with other offices across the state, will review these results in order to make improvements to protect public dollars, and better serve citizens."
The Missouri Department of Revenue is responsible for selecting agents to operate the 177 contract license offices in the state. These offices process transactions related to driver licenses, vehicle titles and license plates. In 2009, state law was amended to allow the Missouri State Auditor's Office to audit contract license offices.
