Missouri State Auditor Scott Fitzpatrick is urging city officials in Fairview to seek justice after a review by his office found the former mayor and his girlfriend are responsible for more than $10,000 in missing funds.
Fitzpatrick issued a letter to the city this week that details how a lack of segregation of duties and proper oversight allowed at least $10,314 to go missing under the watch of former Mayor Peter "PJ" Janis and his girlfriend, who served as a city clerk.
"Even though the former mayor has admitted the missing money looks 'horrible' and is willing to take responsibility for it, current city officials in Fairview should still work with law enforcement regarding criminal prosecution and take the necessary steps to obtain restitution. These dollars represent utility bills paid by the people of Fairview that should have gone into the city water account and Peter Janis needs to be held fully accountable for apparently diverting these funds into his own pockets," said Auditor Fitzpatrick.
Fitzpatrick added, "When taken together, our original audit, the follow-up report, and this letter provide an extensive list of areas where the city should improve its oversight as well as its overall efficiency and accountability to taxpayers. City officials need to prioritize putting our recommendations into place to help ensure large amounts of money don't go missing in the future."
The letter documents how at least $10,314 in cash was received and recorded in the city's accounting system and/or manual receipt books, but not deposited from June 2023 through April 2024. The missing $10,314 was receipted during the period the former Mayor was responsible for overseeing the city's financial functions, and he and his girlfriend were responsible for making deposits. The missing money represents over 43% of utility payments made with cash during the 11-month period. The letter also notes additional money may have been received but not receipted, recorded, or deposited, resulting in possible additional missing money.
Fitzpatrick's office found the missing money was able to go undetected because the city lacked segregation of duties, proper oversight, and adequate reconciliations of utility billings. The letter notes the city's Board of Aldermen did not segregate duties or ensure sufficient oversight, and receipting controls were inadequate.
The Former Mayor, Peter "PJ" Janis, took office in April 2023 and served as Mayor until April 2024. As
of April 2023, the city also employed a City Clerk and Treasurer. The City Clerk and Treasurer were
responsible for the daily duties of receiving and recording receipts and preparing and making deposits. They were also responsible for preparing utility bills, posting payments in the utility system, making adjustments in the utility system, and monitoring delinquent utility accounts. The City Clerk and Treasurer resigned on June 12, 2023, because they were concerned about a missing deposit from June 5, 2023, and additional missing receipts from June 7 and 8, 2023. City officials indicated the office was closed on those days because the City Clerk and Treasurer were attending training, but the former Mayor opened City Hall.
Upon the resignation of the City Clerk and Treasurer, the former Mayor took over the financial duties and completed all financial functions for the city for approximately 6 weeks. The city then hired a City Clerk at the end of July 2023. The former Mayor also hired his girlfriend, Chelsea Dick, as an additional City Clerk, and she worked for the city from July 2023 until December 2023. The clerks performed the daily duties of receiving and recording customer payments, issuing receipts to customers, posting payments in the utility system, and preparing deposits. The former Mayor received and recorded customer payments when the clerks were not available. The former Mayor and former City Clerk Chelsea Dick were responsible for making deposits.
"Even though the former mayor has admitted the missing money looks 'horrible' and is willing to take responsibility for it, current city officials in Fairview should still work with law enforcement regarding criminal prosecution and take the necessary steps to obtain restitution. These dollars represent utility bills paid by the people of Fairview that should have gone into the city water account and Peter Janis needs to be held fully accountable for apparently diverting these funds into his own pockets," said Auditor Fitzpatrick.
Fitzpatrick added, "When taken together, our original audit, the follow-up report, and this letter provide an extensive list of areas where the city should improve its oversight as well as its overall efficiency and accountability to taxpayers. City officials need to prioritize putting our recommendations into place to help ensure large amounts of money don't go missing in the future."
The letter documents how at least $10,314 in cash was received and recorded in the city's accounting system and/or manual receipt books, but not deposited from June 2023 through April 2024. The missing $10,314 was receipted during the period the former Mayor was responsible for overseeing the city's financial functions, and he and his girlfriend were responsible for making deposits. The missing money represents over 43% of utility payments made with cash during the 11-month period. The letter also notes additional money may have been received but not receipted, recorded, or deposited, resulting in possible additional missing money.
Fitzpatrick's office found the missing money was able to go undetected because the city lacked segregation of duties, proper oversight, and adequate reconciliations of utility billings. The letter notes the city's Board of Aldermen did not segregate duties or ensure sufficient oversight, and receipting controls were inadequate.
The city clerks were responsible for almost all the accounting functions and no one verified the deposits after they were made. Additionally, the former mayor received payments and had access to the accounting system, but no one verified that he issued receipt slips, recorded receipts in the accounting system, and deposited those receipts. Additionally, the former city clerks did not perform monthly reconciliations of amounts billed, payments received, bank deposit slips, and bank statements for the period June 2023 through April 2024.
The review conducted by Auditor Fitzpatrick's office was prompted by concerns raised by residents and city officials during the time auditors were conducting a follow-up review of the city. The State Auditor's Office released a performance audit in 2022 that gave the city a "poor" rating and identified improper payments to a former city clerk and conflicts of interest by a former mayor. The follow-up report issued in 2024 found the city had implemented only 3 of the 22 recommendations made by the 2022 audit.
The review conducted by Auditor Fitzpatrick's office was prompted by concerns raised by residents and city officials during the time auditors were conducting a follow-up review of the city. The State Auditor's Office released a performance audit in 2022 that gave the city a "poor" rating and identified improper payments to a former city clerk and conflicts of interest by a former mayor. The follow-up report issued in 2024 found the city had implemented only 3 of the 22 recommendations made by the 2022 audit.
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(Note: The following items are from the letter that was sent to Fairview officials.)
(Note: The following items are from the letter that was sent to Fairview officials.)
The Former Mayor, Peter "PJ" Janis, took office in April 2023 and served as Mayor until April 2024. As
of April 2023, the city also employed a City Clerk and Treasurer. The City Clerk and Treasurer were
responsible for the daily duties of receiving and recording receipts and preparing and making deposits. They were also responsible for preparing utility bills, posting payments in the utility system, making adjustments in the utility system, and monitoring delinquent utility accounts. The City Clerk and Treasurer resigned on June 12, 2023, because they were concerned about a missing deposit from June 5, 2023, and additional missing receipts from June 7 and 8, 2023. City officials indicated the office was closed on those days because the City Clerk and Treasurer were attending training, but the former Mayor opened City Hall.
Upon the resignation of the City Clerk and Treasurer, the former Mayor took over the financial duties and completed all financial functions for the city for approximately 6 weeks. The city then hired a City Clerk at the end of July 2023. The former Mayor also hired his girlfriend, Chelsea Dick, as an additional City Clerk, and she worked for the city from July 2023 until December 2023. The clerks performed the daily duties of receiving and recording customer payments, issuing receipts to customers, posting payments in the utility system, and preparing deposits. The former Mayor received and recorded customer payments when the clerks were not available. The former Mayor and former City Clerk Chelsea Dick were responsible for making deposits.
In April 2024, the former Mayor's term ended, and he was replaced by the current Mayor.
In May 2024, city officials contacted the State Auditor's Office Whistleblower Hotline indicating they
discovered money was missing after performing a review of utility records. This review was initiated after a utility customer indicated his payment (paid by check) had not cleared the bank. Our review of the same records supported the city officials' conclusions. The current Mayor then contacted the former Mayor and requested that he return any payments still in his possession.
In May 2024, city officials contacted the State Auditor's Office Whistleblower Hotline indicating they
discovered money was missing after performing a review of utility records. This review was initiated after a utility customer indicated his payment (paid by check) had not cleared the bank. Our review of the same records supported the city officials' conclusions. The current Mayor then contacted the former Mayor and requested that he return any payments still in his possession.
Former Mayor's reaction
In addition to undeposited cash, we noted 36 payments erroneously deposited into the General Account
instead of the utility account, totaling $2,596.
We discussed the missing money in a recorded interview with the former Mayor. When asked if he felt responsible for the money missing because he was Mayor at the time this all took place, the former Mayor stated "Well yeah. . . I mean if. . . I mean that makes it look. . . horrible on my end."
The former Mayor did not provide an explanation for what happened to the missing money, but stated "I'll take responsibility for it."
When asked if he would be willing to pay the city back for the missing money, he stated that he would
be willing to do so, and would be willing to make monthly payments for however long it takes, because
"either way I'm responsible for it."
be willing to do so, and would be willing to make monthly payments for however long it takes, because
"either way I'm responsible for it."
The former Mayor wrote out and signed a statement indicating, "I Peter Janis former Mayor of Fairview Mo, will take full responsibility for any and all missing funds from city water account, in the amount of $10,358.03."
On April 25, 2024, the former Mayor returned 30 checks and money orders, from 24 customer accounts,
totaling $2,084. The payments were dated from February 8, 2024, through March 19, 2024.
On April 25, 2024, the former Mayor returned 30 checks and money orders, from 24 customer accounts,
totaling $2,084. The payments were dated from February 8, 2024, through March 19, 2024.
When asked why he still had the payments in his possession after no longer being in office, the former Mayor indicated that it was the final deposit from the time he was Mayor, and that he had intended to deposit the payments, but the bank bag had gotten lost in his truck. However, this does not fully explain all retained receipts because the checks were from various dates over a 6-week period, and the former Mayor previously indicated he made deposits approximately weekly.
1 comment:
It's long past time to charge him and haul his azz in front of a judge so he can enter his plea.
He can choose between 'I'm stoopid and me and my squeeze got caught stealing' and 'Me and my squeeze are stoopid and we got caught stealin'.'
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