State Audit Finds Problems With Elsberry Procedures, But No Fraud

ELSBERRY, Mo. — A new state audit of the City of Elsberry found problems with police evidence tracking, utility billing documentation, city receipting procedures, missed revenue opportunities and government transparency, but did not find fraud or missing city funds.

The audit, released by Missouri State Auditor Scott Fitzpatrick, gave the city an overall rating of “Fair.” The review was requested through a citizen petition signed by 299 residents.

One of the most notable findings involved the Elsberry Police Department’s evidence storage system. Auditors initially could not locate 25 items listed in department records. Those items were found the following day in an unmarked box on a shelf.

Auditors later found another 75 items inside the evidence room that had not been entered into the department’s tracking system. Most involved firearms or drug-related evidence. The report said 38 items did not have case numbers, and 22 had no identifying information attached.

The audit said the police department had not maintained complete seized-property records, had not conducted periodic inventories, and did not have adequate procedures for reviewing or disposing of evidence no longer needed. City officials agreed corrective action would be taken.

The audit also found several utility rates being charged by the city either did not match city code or could not be found in city code. Auditors said one sewer rate resulted in about $2,100 in underbilling during 2024. The city disagreed with parts of the finding and said customers were not overcharged, while auditors said the concern involved documentation, transparency and whether rates were properly supported.

Auditors also said Elsberry kept average balances of more than $2.3 million in six non-interest-bearing bank accounts during 2024. The audit estimated the city could have earned between $44,000 and $50,000 in additional revenue by using interest-bearing accounts. The city agreed with that recommendation and said steps have been taken to move funds into accounts that earn interest.

Another finding involved city receipts. Auditors said some permit fees, licenses and other payments were documented with handwritten notes or unnumbered receipts, making it harder to verify that all money collected was properly deposited. The city has since implemented numbered receipt books.

The report also raised transparency concerns, noting that all 18 newly proposed ordinances considered by the Board of Aldermen in 2024 were introduced and approved during the same meeting. Auditors said that practice limits the public’s ability to review proposals and offer feedback before votes are taken.

Fitzpatrick said the audit did not uncover fraud, but did identify several areas where Elsberry officials can improve efficiency, effectiveness and transparency.