09/13/2022 - Jefferson City, Mo.
Missouri State Auditor Nicole Galloway today released the
findings from an audit of the Cornland Special Road District. Taxpayers in
Bates County petitioned Galloway's office for an audit of the district, which
oversees 12 miles of gravel road outside the city of Butler. The audit resulted
in a rating of "fair."
Auditors found that two commissioners were paid for
performing road repair and maintenance work in 2021. Commissioners receiving
payments for road work services while also serving on the board creates an
apparent conflict of interest. Missouri law prohibits elected officials from
performing any service for compensation, other than compensation for the
performance of their duties. Additionally, the board did not prepare and file
IRS 1099 forms to report the payments made to these commissioners.
Additionally, auditors found that the board only held one
public meeting in 2021, but did not keep an agenda or meeting minutes in
compliance with the Sunshine Law. One commissioner indicated to auditors that
the board met informally on other occasions throughout the year to discuss and
vote on district business without providing public notice or keeping meeting
minutes. In one of those informal meetings a vote was taken that awarded road
work business to a vender owned by a family member of a commissioner.
The district also does not have a formal bidding policy and
bids or proposals were not solicited for gravel and rock hauling. After
flooding damaged district roads in 2019, the district applied for and was
awarded up to approximately $130,000 in federal and state disaster assistance
grants to reimburse repairs to roadways. The grant requires the district to
have a documented procurement policy that complies with applicable federal,
state, and local regulations, and publicly solicit competitive bids. At the
time of the audit, federal and state disaster assistance reimbursements
actually received by the district were below the total amount approved and much
of the repair work remained unfinished. In 2020, the board asked residents
living in the road district to donate money for the repairs.
A complete copy of the audit is available here.