A state audit released Tuesday finds that local governments and school districts in Missouri have cost themselves $43 million by not allowing competition for underwriting public bonds.
State Auditor Tom Schweich (R) cites the practice of negotiated bond sales, in which an underwriter is hired in advance and sometimes acts as a financial advisor to the local government that issues the bond.
St. Louis County has new accountants auditing its financial records and they want changes to how officials track extra cash left in bank accounts at the end of the fiscal year.
The county’s Chief Operating Officer Garry Earls says in the past they would consider the leftover money as revenue, but the audit recommends it now be accounted for as an asset.
“There’s a reason accountants have the reputation that they do,” Earls says. “This is a perfectionism of the system, and I’d tell you outright that it is an asset of the county so we might as well count it as an asset.”
Missouri State Auditor Tom Schweich released an audit of Governor Jay Nixon on Wednesday accusing Nixon of overspending his appropriation by $1.7 million and thumbing his nose at the budget appropriation process.