On May 22, the Commission met with Randall Fiene, CPA of Concordia, Missouri, to discuss the current requirements surrounding county audits and to better understand the differences between the outside audits Lafayette County already completes and the petition audit currently being discussed publicly.

One thing I learned during the meeting surprised me. Because Lafayette County has an elected auditor, outside audits are only required under certain circumstances. One of those circumstances occurs when a county expends more than $1 million in federal funds during a fiscal year. Prior to recent changes, that threshold was $750,000. Due to the federal COVID funding received through ARPA and other programs, Lafayette County has been required to complete outside audits for the last five years.

As I began reviewing those audits, questions started arising about the petition currently circulating requesting a state audit. What many people may not realize is that the outside audits we already complete are not limited to ARPA funds. These audits review county finances as a whole, including officeholder funds, General Revenue, revenues received, expenditures made, internal controls, and compliance requirements.

During the meeting, I asked how long Lafayette County had been completing outside audits. I was surprised to learn the county has been doing them since the early 2000s. At that time, an outside audit was required because of bonds issued for the jail project. Although those bonds have since been paid off, the federal COVID funds continued the outside audit requirement.

Next week, you’ll probably find me (along with guided help ) in the courthouse basement locating older audit reports so they can be available for anyone who wants to review them. Thankfully, technology has improved things. Thanks to the County Auditor’s office already have the last five years of audits saved in PDF format and available for review. The plan is also to make those audits easily accessible on the county website.

We also learned that Mr. Fiene previously worked in the Missouri State Auditor’s Office for many years. His experience with state audits helped confirm and clarify much of the information we had recently been learning.

Another important point discussed yesterday is that the petition currently circulating is requesting a review of four specific items. A petition audit completed by the State Auditor’s Office would not be a full county audit. It would be an audit limited to the items included in the petition.

The estimated cost of $150,000 or more for that petition audit came directly from the State Auditor’s Office. For comparison, the county’s current full outside audit which reviews the county’s overall financials and compliance costs just under $40,000 annually.

We also learned that in many third and fourth class counties, the State Auditor’s Office often contracts with outside third party CPA firms to perform petition audits. Those audits are then reviewed by the state and formally presented to the county. In other words, taxpayers could potentially spend over $150,000 for another outside auditor to review four specific items, while the county already completes and publicly presents a comprehensive outside audit every year.

One officeholder mentioned during the meeting that many people are not CPAs and that these audits can be difficult for the average person to understand. I don’t disagree. The audits are extensive, many exceeding 70 pages. However, I also questioned how a petition audit would somehow be easier to understand. The process is largely the same. An outside party reviews records, prepares findings, and presents a summary report.

From my understanding, Mr. Fiene has presented the county’s outside audit publicly each year during a Commission meeting. Those audits have been available, but perhaps not easily accessible enough. That is something we can improve.

Before taxpayers spend additional taxpayer dollars on information we may already have available, I believe we owe it to ourselves to first review the information already in front of us. Let’s do the necessary due diligence. Let’s ask questions, review the audits, and determine whether the answers we are seeking may already exist within those reports. If, after thoroughly reviewing the information available, there are still unanswered questions or concerns, then certainly continue pursuing those answers. But cautiously and thoughtfully signing a petition that could cost taxpayers well over $150,000 without first reviewing the audits already completed does not seem like the smart first step.

I encourage everyone to review the audits we already have available. Ask questions. Reach out. Stop by the courthouse, send a message, or call. If I do not know the answer, I will find the person who does.

This is your money and my money. Every taxpayer has the right to understand how county funds are spent and accounted for, and transparency should always remain a priority.

Respectfully, Monica Ritter

Lafayette County Northern Commissioner