Cooper County receives a "poor" rating from Auditor Fitzpatrick in new report that identifies the county's worsening financial condition

Officials in Cooper County have significant work to do to improve the county's financial condition according to a new report released by Missouri State Auditor Scott Fitzpatrick. The audit gives the county the lowest possible rating of "poor" while noting the county's declining financial condition and identifying several areas throughout county government that need improvement.

"The members of the County Commission need to do a better job of managing the county's finances and putting it on a better trajectory by doing more immediate and long-term planning. Both the General Fund and the E-911 Fund have reached critically low levels and it is important that commissioners put a real plan in place to discontinue deficit spending in these funds," said Auditor Fitzpatrick. "There are a number of areas throughout the various county offices that need attention and an improved level of accountability and oversight. I am pleased that the officials in Cooper County indicate they are taking our recommendations seriously and are working quickly to put them into place."

The audit report finds the failure of the County Commission to perform adequate immediate or long-term planning for a capital improvement project has resulted in the financial condition of the county's General Revenue Fund (GRF) declining. The fund is projected to have an ending balance of $229,198 at the end of 2026 while the ending balance in previous years had been in excess of $1.6 million. The condition of the fund declined because of the purchase of a property for $1.15 million and the cost of the renovations to develop the property into a new office for the Sheriff.

The report also notes the 911 sales tax in effect during the audit period was not sufficient to cover the costs of the emergency 911 services and the cash balance of the E-911 Fund would have been negative by over $250,000 at the end of 2025 without a $310,000 transfer from the GRF and a $35,000 transfer from the Law Enforcement Center Fund. In addition, another transfer of $200,000 is budgeted from the GRF to the E-911 Fund for the year ending December 31, 2026. Given the condition of the GRF, funds may not be available for continued transfers. These transfers from the GRF to the E-911 Fund jeopardize the county's ability to maintain a sufficient reserve to address budget shortfalls in the event of an economic downturn or other significant financial emergency.

The report also finds the County Commission needs to improve its controls and procedures over budgets, fund transfers, credit cards, and leave. The County Commission does not adequately monitor budget-to-actual receipts and disbursements or prepare budget amendments when appropriate. The Commission has also failed to establish adequate controls and procedures, including written guidelines, for the use of the county's 20 credit cards. The report notes the county did not pay credit card bills timely and paid $1,839 in late fees and finance charges during the year ended December 31, 2024. The County Commission and the Sheriff do not monitor credit card limits and limits for some cards are excessive based on their credit use during 2024. Additionally, the County Commission has not established adequate controls to ensure vacation leave accrues in accordance with county policy for the county's 107 employees. The county system did not accrue vacation leave at the correct rates during the year ended December 31, 2024, for 5 of 11 employees who were haphazardly selected for review.

Another finding in the audit report details how the County Clerk did not accurately calculate the property tax levy reduction amounts or retain sales tax rollback calculations for 2024. The property tax reductions did not account for any difference between estimated and actual sales taxes collected for the preceding year. As a result, the county has assessed approximately $108,000 in excess property taxes for 2023 and 2024. The report recommends the County Commission and the County Clerk properly calculate property tax rate reductions considering deficits/credits for the preceding year, and develop a plan to correct for the accumulation of prior years' over collections of property taxes.

The report also documents the need for improved controls and procedures in the offices of the Sheriff and the County Collector. The County Collector improperly calculated Assessment Fund withholding amounts and, as a result, over-withheld Assessment Fund commissions by $64,343, and disbursed less funds to political subdivisions during the settlement year ended February 28, 2025. The County Collector also does not prepare a monthly list of liabilities to reconcile to the available cash balance of the main bank account. The Sheriff has not adequately segregated accounting duties or performed adequate supervisory reviews of detailed accounting and bank records, and has not established adequate procedures for receipting, recording, and depositing. The Sheriff's office has also failed to maintain complete, accurate records of seized property, and did not conduct periodic physical inventories of seized property. As of April 9, 2025, Sheriff's office personnel had not completed a physical inventory since at least 2023.

The audit report details how the County Commission did not enter into written contracts with the financial system provider or the Cooper County Extension Council. In addition, the County Commission budgeted and paid the Council more than required by state law and improperly classified a Council employee as a county employee.

Other findings in the audit report include the County Commission authorizing a mid-term salary increase for the Sheriff in violation of constitutional provisions; a need for improved controls and procedures over the property tax system; personnel in the Prosecuting Attorney's office failing to reconcile the bank balances to book balances for the Bad Check and Restitution accounts; a failure by the County Commission to consistently ensure compliance with the Sunshine Law; 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 is available here.

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