Auditor’s report reveals misuse of city funds in Kennett

KENNETT, Mo., (KBSI) — A new report from State Auditor Scott Fitzpatrick has found that the former Deputy City Clerk of Kennett misappropriated at least $79,821 in city funds.

The report, which gives the City of Kennett a rating of “poor,” cites lacking oversight and controls that allowed the misappropriation to occur.

According to the report, the former Deputy Clerk, Leslie Osorio, made personal and questionable purchases totaling $11,799 using a city-issued credit card. Osorio also paid herself and her husband, who worked part-time for the fire department, over $61,700 for time they did not work.

“It’s outrageous that a city employee would be able to overpay herself and her husband by tens of thousands of dollars, or that she could get away with using a city credit card to purchase hundreds of personal items,” said Auditor Fitzpatrick.

The report also found that the city failed to provide adequate oversight and review of disbursements, allowing the misappropriation to go undetected.

The audit recommends improved segregation of accounting duties, as well as appropriate reviews and monitoring procedures.

City officials have agreed to implement the recommendations and comply with them as quickly as possible.

The report’s findings include:

Questionable purchases made by Osorio using a city-issued credit card, including a 43″ smart TV and the complete collection of the Madea movies on DVD.
Improper payments made to Osorio and her husband, including over $61,700 for time they did not work.
Lack of oversight and review of disbursements by city officials.
Inaccurate and missing payroll records that allowed payroll overpayments to go undetected.

The audit also found that the city failed to consistently comply with the Sunshine Law and did not have sufficient controls over computers in the City Clerk’s office.