(From State Auditor Scott Fitzpatrick)Despite the massive increases in spending by local governments, spurred by federal pandemic stimulus dollars, Missouri State Auditor Scott Fitzpatrick says his office is currently limited in its ability to make sure many of these entities are held accountable for their actions.
Today, Auditor Fitzpatrick testified before the House Government Efficiency and Downsizing Committee in support of House Bill 2111, sponsored by state Rep. Phil Christofanelli, that would give the State Auditor's Office greater ability to audit any local government when improper activity has occurred.
"As the state's taxpayer watchdog, we regularly hear from Missourians who want our help in rooting out fraud and abuse in their local governments. These concerned citizens who turn to us for help are shocked when they find out that even if we uncover improper governmental activity during an investigation the burden is still on the citizens to gather signatures to allow us to conduct a full audit," said Fitzpatrick.
"When it comes to protecting their tax dollars, Missourians don't want a watchdog on a short leash. They want a junkyard dog who is going to fight tooth and nail to hold government officials accountable for how they spend their hard-earned tax dollars. I'm asking legislators to unleash my office so we can shine the light of transparency on every corner of this state."
Under current state law, the State Auditor's Office has the ability to audit state agencies, boards and commissions, the circuit court system, most counties, school districts and charter schools, community improvement districts, transportation development districts, solid waste management districts, and land bank agencies.
Under current state law, the State Auditor's Office has the ability to audit state agencies, boards and commissions, the circuit court system, most counties, school districts and charter schools, community improvement districts, transportation development districts, solid waste management districts, and land bank agencies.
The office is not authorized to audit counties that have a county auditor or political subdivisions such as municipalities, fire protection districts, ambulance districts, and sewer districts. For these governmental entities, the State Auditor's Office has to be invited in by the governing body or by a petition signed by voters even in cases where an initial investigation uncovers the likelihood of fraud.
Christofanelli's House Bill 2111 and Senate Bill 1048, sponsored by state Sen. Travis Fitzwater, would allow the State Auditor's Office to conduct an audit of these entities in cases where an investigation finds improper government activity has occurred.
Christofanelli's House Bill 2111 and Senate Bill 1048, sponsored by state Sen. Travis Fitzwater, would allow the State Auditor's Office to conduct an audit of these entities in cases where an investigation finds improper government activity has occurred.
In addition, an audit could be conducted upon request by a prosecuting attorney, circuit attorney, or law enforcement agency as part of an investigation of improper activity.
Fitzpatrick noted in the last several months his office has released audits of three small political subdivisions in Southeast Missouri that have uncovered nearly half a million dollars in missing money. All were for entities the State Auditor's Office does not have the discretion to audit even though fraud was likely. Each required an invitation from the governing body of the political subdivision.
"We were fortunate with these audits to have new local leadership in place that wanted us to come in to review and identify potential fraud. However, in a situation where the fraud is ongoing, it's not realistic to think local leaders are going to invite our office in to uncover what may be their own wrongdoing. In these cases, that burden then falls on citizens who are tasked with gathering signatures to authorize us to help," said Fitzpatrick. "It's unfair and cumbersome to ask citizens already frustrated with a local government that may be misusing their tax dollars to then jump through bureaucratic hoops in order to hold their government officials accountable. My office is ready and willing to take that burden from Missourians and get in the ring on their behalf so we can take the fight to anyone who misuses our tax dollars. We just need the General Assembly to be in our corner to make that happen."
Both Senate Bill 1048 and House Bill 2111 also contain provisions to allow the State Auditor's Office to use its subpoena power during the investigative process. The existing authority to issue subpoenas during an audit allows the office access to vital information it may not otherwise be able to obtain, and expanding that authority to the investigative process would assist the office in conducting a more effective review to determine if fraud exists. Both bills would also provide additional protections for whistleblowers who provide information to the State Auditor's Office.
Both pieces of legislation are similar to bills filed and considered by the Missouri General Assembly during the 2023 legislative session. Senate Bill 222, which contained comparable language, secured bipartisan House passage and was one vote away from final passage in the Senate when the 2023 session came to a close. Fitzpatrick said he's hopeful the legislation will make it across the finish line in 2024.
Fitzpatrick noted in the last several months his office has released audits of three small political subdivisions in Southeast Missouri that have uncovered nearly half a million dollars in missing money. All were for entities the State Auditor's Office does not have the discretion to audit even though fraud was likely. Each required an invitation from the governing body of the political subdivision.
"We were fortunate with these audits to have new local leadership in place that wanted us to come in to review and identify potential fraud. However, in a situation where the fraud is ongoing, it's not realistic to think local leaders are going to invite our office in to uncover what may be their own wrongdoing. In these cases, that burden then falls on citizens who are tasked with gathering signatures to authorize us to help," said Fitzpatrick. "It's unfair and cumbersome to ask citizens already frustrated with a local government that may be misusing their tax dollars to then jump through bureaucratic hoops in order to hold their government officials accountable. My office is ready and willing to take that burden from Missourians and get in the ring on their behalf so we can take the fight to anyone who misuses our tax dollars. We just need the General Assembly to be in our corner to make that happen."
Both Senate Bill 1048 and House Bill 2111 also contain provisions to allow the State Auditor's Office to use its subpoena power during the investigative process. The existing authority to issue subpoenas during an audit allows the office access to vital information it may not otherwise be able to obtain, and expanding that authority to the investigative process would assist the office in conducting a more effective review to determine if fraud exists. Both bills would also provide additional protections for whistleblowers who provide information to the State Auditor's Office.
Both pieces of legislation are similar to bills filed and considered by the Missouri General Assembly during the 2023 legislative session. Senate Bill 222, which contained comparable language, secured bipartisan House passage and was one vote away from final passage in the Senate when the 2023 session came to a close. Fitzpatrick said he's hopeful the legislation will make it across the finish line in 2024.
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