State Audit Finds Evidence Tracking Issues, Missed Revenue Opportunities And Transparency Concerns In Elsberry
- John Eads
- Jun 4
- 4 min read
Elsberry, Mo. — Nearly 300 residents signed a petition asking the State of Missouri to take a closer look at how their city government was operating.
Months later, the results are in.
A state audit released by Missouri State Auditor Scott Fitzpatrick gave the City of Elsberry an overall rating of “Fair” and identified concerns involving police evidence tracking, utility billing, financial management, receipting procedures, and public transparency.
The audit did not find fraud or missing city funds.
What it did find was a city operating with inconsistent procedures, incomplete records, and practices auditors believe need improvement.
Perhaps the most eye-opening finding came inside the Elsberry Police Department’s evidence storage area.
When auditors reviewed the department’s seized property system, they expected to locate 25 items listed in department records.
They couldn’t find any of them.
The following day, those items were located inside an unmarked box sitting on a shelf.
The discovery led auditors to dig deeper.
As they continued their review, auditors identified another 75 items stored inside the evidence room that were not entered into the department’s tracking system. Most of those items involved firearms or drug-related evidence.
Thirty-eight of the items lacked case numbers. Twenty-two had no identifying information attached at all.
The audit concluded the department had not maintained complete records, had not conducted periodic inventories, and lacked procedures to routinely review evidence and dispose of property no longer needed.
City officials agreed with the recommendation and indicated corrective action would be taken.
The audit also examined utility operations, one of the largest services provided by the city.
Auditors found several utility rates being charged either did not match city code or could not be found in city code at all.
One sewer rate resulted in approximately $2,100 in underbilling during 2024.
The review also found the city had not completed a recent cost study to support utility rates and annual increases.
City officials disagreed with portions of those findings and stated customers were not overcharged. Auditors responded that the concern centered on documentation, transparency, and whether rates were properly supported and reflected in city code.
The report also highlighted what auditors described as a missed financial opportunity.
According to the audit, the city maintained average balances of more than $2.3 million in six non-interest-bearing bank accounts during 2024.
Had those funds been placed into interest-bearing accounts, auditors estimate the city could have earned between $44,000 and $50,000 in additional revenue.
The city agreed with that recommendation and reported steps have already been taken to move funds into accounts that earn interest.
Another finding involved city receipting procedures.
Auditors found some permit fees, licenses, and other payments were documented using handwritten notes or unnumbered receipts. Without a sequential receipt system, auditors said it becomes more difficult to independently verify every payment collected was properly deposited.
The city has since implemented numbered receipt books.
The audit also raised concerns about transparency at City Hall.
During 2024, all 18 newly proposed ordinances considered by the Board of Aldermen were introduced and approved during the same meeting.
Auditors said that practice limits opportunities for residents to review proposals, ask questions, and provide feedback before votes take place.
The report also noted full ordinance language was not routinely posted online before meetings, leaving residents little time to review proposed changes before decisions were made.
The city stated it believes it complies with Missouri law but agreed additional opportunities for public review could improve transparency.
The audit itself was requested through a citizen petition signed by 299 residents, a process allowed under Missouri law when enough voters request a state review of local government operations.
While the report identifies numerous recommendations, the state auditor does not have authority to force the city to implement them.
Instead, the findings become public and city officials must decide how they will address each recommendation moving forward.
Some corrections, according to city responses included in the audit, have already been made.
Others will likely become topics of discussion at future Board of Aldermen meetings.
“Any time citizens take the time to gather signatures for a petition for a state audit, we take that effort seriously and give it the attention it deserves,” Fitzpatrick said. “We didn’t find any signs of fraud in the City of Elsberry, but we did find many areas in which city officials can make improvements that will lead to a city government that is more effective, efficient, and transparent.”
Residents can read the complete audit for themselves here.
Lincoln CountyWatch will continue following city discussions and any corrective actions taken as a result of the audit findings.
Story written by John Eads.
Sources:
Missouri State Auditor’s Office
City of Elsberry Audit Report
I had two shotguns that were confiscated and I was supposed to get them back and for years they keep telling me somebody else has to give well. It’s been five years I guess and nobody seems to know where the guns went. They were handed down for the family and I was supposed to get them back, but I never did receive them.