State Auditor's Office releases annual audit of the State Treasurer's Office

 State Auditor Scott Fitzpatrick has given the Office of State Treasurer (STO) a "good" rating in a new audit report that also recommends the office work with the General Assembly to ensure all investment interest income is handled in accordance with state law. The report recommends the STO credit interest earned on the State Road Fund I-70 Project Fund, the OA I-70 Project Fund, and the State Road I-44 Improvement Fund to general revenue in compliance with statutory requirements.

The report details how the STO credited investment interest income of $364,000 to the State Road Fund I-70 Project Fund and $34,337,000 to the OA I-70 Project Fund during the fiscal year ended June 30, 2024. State law specifies that unless otherwise provided by law, all interest received from the investment of state moneys shall be credited by the state treasurer to general revenue. The funds were neither constitutionally nor statutorily created, and the STO could provide no legal provision to support that these funds were authorized to retain the investment interest income credited to each fund.

The report also notes the State Road I-44 Improvement Fund was created during the 2024 legislative session to handle appropriations designated for the Interstate 44 (I-44) improvement project. Even though this fund was neither constitutionally nor statutorily created, and no legal authority was provided to support this fund retaining its investment interest income, the STO credited approximately $115,000 in investment interest income to the fund during the fiscal year ended June 30, 2025.

The report also notes the Missouri Department of Transportation (MoDOT) and the Office of Administration (OA) communicated to the State Auditor's Office (SAO) that the State Road Fund I-70 Project Fund and the State Road I-44 Improvement Fund were created with the intention of being "sub-funds" of the State Road Fund and that the General Assembly also created these funds with the intention of them being sub-funds of the State Road Fund. A follow-up conducted by the SAO with key members of the General Assembly as well as a review of relevant legislative testimony does not support this conclusion. The legislative history supports the conclusion that the General Assembly created these funds separately from the State Road Fund intentionally.

The audit report recommends the STO work with the General Assembly to ensure all investment interest income is handled in accordance with state law; and unless otherwise provided by law, ensure all interest received from the investment of state moneys is credited by the state treasurer to general revenue.

The annual report includes a summary of the office's operating financial activity, cash and investment balances, and investment income. The Missouri Constitution establishes the State Treasurer as custodian of all state funds and funds received from the U.S. government.

The complete annual audit report can be found here.