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Audit: KCMO missing $443,000 in uncollected property rent

Posted at 10:06 AM, Jul 22, 2021
and last updated 2021-07-22 11:06:35-04

KANSAS CITY, Mo. — The Kansas City, Missouri, City Auditor's Office reviewed the city's lease management program and found several issues to address.

According to the audit, the General Services Department of the city failed to collect $443,000 in unpaid rent to the city between 2016 and 2020.

There were also issues with the leases, accounting for $164,500 in lost revenue because rates were not increased as outlined in leases and seven lessees with expired leases remained on their properties between six and 65 months before renewing their lease, according to the auditor's office.

The audit also found that the city has not developed a policy on below-market-rate leases. A resolution was passed in 2019 by the City Council directing the city manager to do so in order to ensure rent subsidy for different properties is beneficial to the public.

Based on the findings, the office recommends collecting unpaid rent, increasing rent amounts as laid out in leases, create a system to identify expiring leases and document leasing procedures.

More about the report can be found online.

The audit will be presented to the City Council at 2 p.m. Thursday.

KSHB 41 News has reached out to the city for comment and is awaiting a response.