05/29/2025 - JEFFERSON CITY, Mo.
A new report from State
Auditor Scott Fitzpatrick reveals how a taxpayer-funded shopping spree
perpetrated by the former Deputy City Clerk of the City of Kennett resulted in
thousands of dollars in inappropriate purchases such as a couples intimacy
game, an ovulation kit, pregnancy tests, and a bottle of rum. The report, which
gives the City of Kennett a rating of "poor," finds the city has
lacking oversight and controls that allowed former Deputy Clerk Leslie Osorio
to misappropriate at least $79,821.
"We have worked
directly with law enforcement to ensure they have everything they need to
prosecute Leslie Osorio to the fullest extent of the law because of this
enormous breach of the public's trust. It's outrageous that a city employee
would be able to overpay herself and her husband by tens of thousands of
dollars, or that she could get away with using a city credit card to purchase hundreds
of personal items, such as a 43" smart TV and the complete collection of
the Madea movies on DVD. It's equally disturbing to see the city failed to have
adequate oversight in place that could have prevented this egregious misuse of
taxpayer funds," said Auditor Fitzpatrick. "I am encouraged that city
officials have agreed with all of our recommendations and have committed to complying
with them as quickly as possible. It's time for the city to regain the trust of
the people of Kennett by taking every step possible to make sure nothing like
this can happen again."
The report documents how former Deputy Clerk Leslie Osorio made
personal and questionable purchases totaling $11,799, using her city-issued
Walmart credit card. Osorio admitted items totaling $3,747 were personal in
nature and could not provide a city purpose for additional items totaling
$8,052. The improper purchases include large quantities of food items,
clothing, home decor items, personal care items, toys, games, and alcohol.
Items the former Deputy Clerk admitted to being personal included a "Santa
Gangsta" men's fleece sweatshirt, a Powerpuff Girls™ shirt, along with
other clothing and food items. Items Osorio could not provide an explanation
for include a Sharper Image®
percussion massager, personal lubricant, a "Let's Get Deep" intimacy
game for couples, a Kitchenaid® deluxe stand mixer, My Little Pony™ toys, and a
Better Homes and Gardens® fake fireplace.
The report also
documents how Osorio paid herself and her husband, who worked
part-time for the fire department, over $61,700 for time they did not work and
for other reasons that were otherwise not allowed. The former Deputy Clerk
Osorio paid herself $35,440 for 783 hours of unallowed overtime. For example,
during 2021, the Deputy Clerk averaged 33 hours of overtime per week for her
additional duties with the fire department when she was only supposed to work
20 overtime hours per week for this work, according to her own testimony.
Additionally, a review of her city-issued Walmart credit card activity and her
time records indicate she was making personal purchases or was sick when she
claimed she worked. She also paid herself $15,500 in improper stipends during
the audit period with payments ranging from $150 to $500 per pay period. Osorio
was also responsible for entering her husband's payroll into the accounting
system and improperly paid him a total of $4,114. The report also found the
former Deputy Clerk paid herself for unearned or already-used vacation leave
valued at over $3,000, and did not pay for approximately $2,700 in employee
benefits she received. Additional payments to Osorio and her husband totaling
approximately $17,300 may also have been improper.
The report also details how Osorio was
able to get away with the misappropriation of city funds because the City Council and the City Clerk did
not provide adequate oversight or sufficiently review or approve disbursements.
The report also notes how inaccurate
and missing payroll records allowed payroll overpayments to go undetected.
Additionally, city officials allowed numerous questionable and/or
unnecessary purchases to occur, and the city does not have any guidance or
policy regarding the use of city funds to purchase food, gifts, and other
items. City officials also failed to review credit card statements or related
supporting documentation prior to payment and instead set the credit card accounts,
including the city Walmart credit card, to be paid automatically. The audit
recommends improved segregation of accounting duties as well as appropriate
reviews and monitoring procedures.
Other findings in the audit include
the city's failure to consistently
comply with the Sunshine Law or sufficiently document discussions to
demonstrate Sunshine Law compliance, insufficient controls over the computers
in the City Clerk's office, and the failure of city personnel to follow
city code or Missouri Secretary of State guidance regarding retention of
electronic communication sent via text messages.
The full audit report
is available here.
