State Auditor Scott Fitzpatrick provides Morgan County governmental operations with a "fair" rating

Morgan County governmental operations need to improve in a number of areas according to a new report issued by Missouri State Auditor Scott Fitzpatrick. The audit released today provides the county with a "fair" rating as it identifies necessary improvements in the county's budgeting process as well as the Morgan County Sheriff's Office.

"The good news is the county doesn't show any signs of excessive waste or fraud, but it does have several areas lacking controls and procedures, which can lead to inefficiency and increase the possibility that fraudulent activity could occur. The county also needs to more strictly follow the law regarding the management and monitoring of its budgeting," said Auditor Fitzpatrick. "I am appreciative of the response from county officials who have taken our recommendations seriously and are already working to put them into place."

The audit report finds the County Commission failed to adequately monitor the county's budget-to-actual receipts and disbursements. The commission also failed to prepare budget amendments to prevent disbursements in excess of budgeted amounts. For the year ended December 31, 2024, actual disbursements exceeded the county's budgeted disbursements by nearly $3 million. The report notes state law prohibits counties from spending more than budgeted and provides guidance on when budget amendments are allowable. Proper monitoring of budgets prior to disbursing funds is necessary for the budget to be an effective management tool and to comply with state law.

The report also identifies several areas in need of improvement in the Morgan County Sheriff's Office. Commission fees totaling $10,081 from Sheriff's sales held prior to July 2022 are maintained in the Sheriff's escrow bank account and have not been remitted to the County Treasurer as required by state law. In addition, Sheriff's office personnel do not conduct periodic physical inventories of seized property. A complete inventory has not been performed in approximately 6 years. The report notes adequate internal controls are essential and would significantly reduce the risk of loss, theft, or misuse of the seized property. The audit report also notes the Sheriff's office does not issue receipt slips or maintain a record of Sunshine Law request fees received, does not restrictively endorse checks received for payment of Sunshine Law fees upon receipt, does not have a log of records requested under the Sunshine Law, and does not prepare a monthly list of liabilities for the Sheriff's fees bank account.

Another finding in the report identifies how the Morgan County Public Administrator does not always file annual settlements timely. In a review of all 53 active cases with annual settlements due in 2024, the audit found the Public Administrator did not timely file 20 settlements. Settlements for these cases were filed between 1 and 579 days after the due date. The Public Administrator had not filed settlements for an additional 4 cases for deceased wards' estates as of March 3, 2026, with these settlements due during 2018, 2020, 2023, and 2024.

Other findings in the report include a failure by the County Clerk to perform accurate monthly bank reconciliations or maintain a cumulative book balance for the special elections bank account, a failure by the county to calculate all property tax levy reduction amounts or consider whether transfers were needed to the Road and Bridge Fund to replace lost property tax revenue totaling $256,848, mid-term salary increases for the Sheriff in violation of constitutional provisions, and a failure to develop a records management and retention policy that includes electronic communication in compliance with the Missouri Secretary of State Records Services Division guidance.

The complete audit report for Morgan County is available here.