Audit Reveals Financial Mismanagement in Iron County Sheriff's Office

Iron Co., Mo. (KFMO) - A recent audit of the Iron County Sheriff's Office, covering the period from December 31, 2020, through March 31, 2023, has uncovered significant financial mismanagement, missing funds, and improper accounting procedures.

The report, released by Missouri State Auditor Scott Fitzpatrick, gave the office a "Poor" rating, the lowest possible, indicating major deficiencies in financial oversight and operational controls.

Missing Funds and Bond Irregularities

The audit found that at least $5,680 in cash bond payments collected by the Sheriff's Office was never deposited and remains unaccounted for. Of the 263 bond forms issued during the audit period, 136 forms indicated money was collected. A review of these bonds identified six cases where bond payments were never deposited into any Sheriff’s bank account or sent to the appropriate court. Additionally, auditors found discrepancies in 94 of the 263 bond forms, including incomplete or missing documentation, bonds disbursed before money was collected, and instances where the Sheriff’s office had insufficient funds to cover bond disbursements.

During the audit period, 24 bonds totaling $19,501 were not transferred to the circuit court within 30 days, with some held for nearly a year. The former Sheriff failed to segregate accounting duties or conduct adequate supervisory reviews, contributing to these financial irregularities.

Overdrawn Accounts and Improper Purchases

The Sheriff’s Office also mismanaged its bank accounts, causing the Bond and Revolving Fund accounts to be overdrawn multiple times. The Bond account had a negative balance of $701 at one point, while the Revolving Fund account dropped to negative $14,448, leading to the county incurring $238 in overdraft fees.

The audit revealed improper purchases made with office credit cards, totaling $4,954, and two unauthorized cash withdrawals from a donation account amounting to $308. From January 2021 to March 2023, the Sheriff’s Office made 80 credit card purchases worth $18,634 without providing proper receipts. This led the County Clerk’s office to refuse payment on some bills, resulting in $145 in late fees and $680 in finance charges before some cards were ultimately canceled.

Due to the lack of financial oversight, the Sheriff's Office exceeded its 2022 budget for the General Revenue Fund, overspending by $10,843 for the Sheriff's Office and $41,364 for the jail.

Failure to Solicit Bids and Untracked Expenditures

The audit also found that the Sheriff's Office failed to solicit bids for inmate meals, spending approximately $50,000 in 2021 and $49,000 in 2022—an increase of $29,000 per year from the previous administration. Furthermore, there was no documentation for civil paper service requests, no tracking of costs for prisoner boarding, and a lack of controls over fuel purchases. Fuel usage increased from 10,987 gallons in 2020 to 18,061 gallons in 2022 despite no significant changes in the department's fleet size.

Seized Property Mismanagement

Significant issues were also found in the handling of seized property. Auditors attempted to verify 10 items from the seized property evidence listing but were unable to locate three, including a 9mm handgun with holster and live rounds, two pipes containing marijuana, and a .22 Magnum revolver. Additionally, the audit discovered a samurai sword, a rifle, and a large rock in the property room that were not recorded in the evidence listing. Many items were not properly secured or labeled, creating serious concerns about the integrity of seized evidence.

Payroll and Grant Issues

The Sheriff’s Office also failed to maintain accurate payroll records, including timesheet calculations and vacation and sick leave balances. Auditors found instances where timesheets were approved before the actual dates worked.

Additionally, the former Sheriff failed to submit a timely application for the Deputy Sheriff Salary Supplementation Fund grant for the 2022 fiscal year, resulting in lost revenue for the county. The County Commission had to use general revenue funds to make up for the shortfall.

Sales Tax and Other Concerns

The audit revealed that the Sheriff's Office improperly calculated and failed to remit sales tax on e-cigarette sales to inmates, shorting the Missouri Department of Revenue by $61 in the first quarter of 2023 alone.

Audit Recommendations

Based on these findings, the Missouri State Auditor’s Office has issued several recommendations, including:

Working with law enforcement to investigate the missing funds and seek restitution.

Establishing stricter controls over bond collections, deposits, and disbursements.

Implementing better accounting practices, including segregation of duties and supervisory reviews.

Improving inventory tracking for both seized property and office equipment.

Ensuring proper procurement processes, including soliciting competitive bids for services such as inmate meals.

Strengthening internal controls over payroll, credit card use, and grant applications.

Conclusion

The audit highlights severe mismanagement within the Iron County Sheriff’s Office under the former administration. The findings raise serious concerns about financial accountability and operational transparency. County officials will now need to take corrective actions to restore public trust and implement stricter financial controls to prevent similar issues in the future.