New report from Auditor Fitzpatrick finds significant issues need to be addressed with controls and procedures in several Wright County government offices

Missouri State Auditor Scott Fitzpatrick has issued a new report that finds the Wright County Commission put the county in debt in violation of state law because of a poorly managed jail expansion project that ended in a costly legal settlement. The report, which gives the county a "poor" rating, also finds several county offices need to improve controls and procedures, including the Wright County Sheriff's Office, which violated state law by maintaining a fund outside the County Treasury while also making nearly $16,000 in improper and unsupported disbursements.

"This audit report has recommendations that can help county officials address the many issues that exist across multiple offices of county government, but the process it took to reach this point was more difficult than it should have been as we were forced to issue a subpoena to get records, and the former Sheriff originally withheld information about the fund he illegally maintained outside the County Treasury," said Auditor Fitzpatrick. "The people of Wright County deserve a better and more transparent government and the recommendations we have in our report will help county officials make much-needed improvements. So far the response to our report has been encouraging, but I urge officials in Wright County to not let up until every recommendation is put into place."

The report documents how the Wright County Commission failed to adequately protect the county's financial interests as a poorly managed jail expansion project led to a lawsuit and a significant legal settlement that put the county into a form of indebtedness not allowed by state law. The county allegedly failed to pay some of the construction costs for the project on time, which led the construction manager to file a lawsuit for breach of contract. The two parties ultimately settled for a total of $625,000, which put the project cost over the guaranteed maximum price by $173,995. The county then entered into a loan agreement with the Wright County Industrial Development Authority (IDA) Board that is not authorized by state law. The repayment of the loan will cause the county to incur additional interest costs totaling $74,000.

A review of the Sheriff's office found several areas in need of improvement as it also identified a bank account and a safe deposit box maintained outside the county treasury in violation of state law. The Sheriff's office deposited $15,000 of public funds into the Special Operations Account in violation of the Missouri Constitution. The office also made 6 improper and unsupported disbursements from the account totaling $15,950. Items purchased include a drone that was kept at the Sheriff's personal residence and nearly $2,500 in gym equipment that could not be located at the Sheriff's office or the jail. The Sheriff's office also failed to maintain an adequate check register, perform bank reconciliations, issue receipt slips for all donations, or retain supporting documentation of all purchases made from the account.

The report identifies several other areas of concern in the Sheriff's office as it also found office personnel do not have established controls and procedures over seized property. Auditors conducted a review of 16 haphazardly selected items and could not located 4 items, including a New England 20-caliber gun and Maverick model 88 gun. Sheriff's office personnel also failed to deposit timely or restrictively endorse checks, perform bank reconciliations timely, prepare a monthly list of liabilities for the inmate and commissary account, ensure inmate account balances were refunded upon release, establish procedures to routinely follow up on outstanding checks, and monitor fuel use of office vehicles.

The audit includes several findings for other offices of county government including a failure by the County Clerk to pay bills on time, which resulted in $961 in late fees and finances charges. The report also notes the County Clerk improperly calculated the property tax reduction, and as a result, the county levied approximately $23,400 in excess property taxes for 2023. Additionally, County Clerk's office personnel do not always perform timely and accurate reconciliations of the bank account.

The report finds the Wright County Prosecuting Attorney has not adequately segregated accounting duties or performed documented supervisory reviews of all records, and has not established adequate procedures for reconciling the bank account, routinely following-up on outstanding checks, and preparing a monthly list of liabilities to reconcile to the available cash balance. The office has also failed to makes deposits in a timely fashion and maintained 2 inactive bank accounts that have accumulated $296 in dormant account fees. The office also has an employee who is conducting personal business as a notary while also performing Prosecuting Attorney's office duties.

Other findings in the report include a $3 "research fee" charged by the County Assessor that is not allowed by state law, a failure by the Public Administrator to consistently file annual settlements timely, a mid-term salary increase for the Sheriff in violation of state law and the Missouri Constitution, insufficient controls over county computers, and a records management and retention policy that does not include electronic communication in compliance with the Missouri Secretary of State Records Services Division guidance.

The complete audit report for Wright County is available here.