KANSAS CITY, Mo. — Millions of dollars worth of contracts in Jackson County aren’t subject to a competitive bid process or regular review by county officials, according to a report issued Wednesday by the state auditor.
Missouri State Auditor Nicole Galloway’s office, which has undertaken awide-reaching review of Jackson County’s financial practices for more than two years now, rated Jackson County’s performance around no-bid contracts and other expenditures to be poor.
According to the report, auditors “found lack of transparency in how the county spent millions of taxpayer dollars on legal, lobbying and other professional services.”
That includes $2.7 million in no-bid contracts and another $1.3 million in contracts “that went years without being reevaluated” in violation of the county’s charter and bylaws.
All contracts worth more than $5,000 are supposed to be competitively bid in Jackson County, but nearly $2 million in legal services, including money paid to a federal lobbying firm from 2011 to 2017, weren’t.
That also includes $100,000 worth of contracts for employment complaint services from 2017 to 2018 and a six-month contract worth $60,000 for consulting services with a former county executive, according to the auditor's report.
"The prevalence of no-bid contracts and the lack of review for professional services in Jackson County government is troubling," Galloway, who is the Democratic candidate for governor in November, said. "Time and again, officials violated the policies the county has to ensure transparency. Taxpayers deserve better."
Another $1.3 million in contracts to a federal lobbying firm, which assisted with the county’s controversial Rock Island Rail Corridor plan, was competitively bid, but Jackson County only reevaluated the contract once in seven years.
Furthermore, the contract lacked detailed requirements for specific services to be performed.
Galloway’s office also noted “multiple situations” when the county failed to obtain detailed invoices for work billed to taxpayers and other times when the county was billed before a written contract was in place.
Travel expense reporting also lacked oversight and compliance with county policy, including missing invoices and excessive room service charges on the former chief of staff’s credit card.
Nearly $163,000 in travel expenses for county employees and officials, which were “sometimes excessive” and “not transparently documented,” was funneled through a federal lobbying firm from June 2010 to April 2016.
The audit also determined that the Director of Finance and Purchasing for the county “has not prepared an annual purchasing report as required” nor has the county established proper procedures for ensuring taxpayer money is spent as intended.
That includes lax oversight of fuel use and more than $9,000 in taxpayer money for Christmas parties at the Jackson County Sheriff's Office.
“I am pleased to know that most of the recommendations made involve issues that have already been addressed by the County,” Jackson County Executive Frank White Jr. said in a statement. “We will continue to work with the elected leaders of Jackson County to make additional improvements in the days, weeks and months ahead. I would like to commend the efforts of State Auditor Nicole Galloway and her staff, whose hard work will ensure our government is operating effectively with the utmost transparency and efficiency.”
An audit of the county’s Community-Backed Anti-Crime Tax, or COMBAT, Fund was released in April, prompting a war of words between White and Jackson County Prosecuting Attorney Jean Peters Baker.
Control of the COMBAT Fund was transferred to Baker’s office amid questionable spending practices by the county.
Audits on Jackson County’s budgeting and payroll practices are ongoing, according to the Missouri State Auditor’s office.
