Auditor Fitzpatrick launches audit of the Regional Arts Commission of St. Louis

A St. Louis area organization that receives and distributes millions of taxpayer dollars each year is now under the microscope of Missouri State Auditor Scott Fitzpatrick for the possible misuse of these funds. Fitzpatrick announced his office has launched a performance audit of the Regional Arts Commission of St. Louis (RAC) after an initial investigation found several issues that may constitute improper governmental activity. The investigation that led to the audit was prompted by whistleblower complaints alleging excessive staffing expenses and unconstitutional bonuses.

"This is an organization with a dedicated revenue stream provided by taxpayers that has very strict statutory requirements for how the funds can be used, and we are going to pull back the curtain to see if the millions of dollars that flow through RAC each year are being used appropriately," said Auditor Fitzpatrick. "The whistleblower complaints we investigated uncovered potentially serious issues that need to be reviewed to determine if the commission is failing to comply with the law. These are taxpayer funds that have a very specific purpose and it is imperative we determine if they are being used to promote the arts as required by law, or if RAC executives are coloring outside the lines."

The investigation conducted by Auditor Fitzpatrick's office found several issues that potentially constitute improper governmental activity, including: noncompliance with state law regarding administrative cost limits, inconsistencies in the grant award process and weaknesses in the grant evaluation process, as well as inappropriate credit card use, life event payments, incentive payments, and other personal expenditures.

Created by state statute, the RAC is a nonprofit organization that receives four-fifteenths of the hotel/motel room tax revenue generated in St. Louis City and St. Louis County with the stated purpose of investing most of those dollars back into the region in the form of grants that foster the arts. Missouri law makes it clear no more than fifteen percent of the annual revenues of the commission can be used for administrative or staffing expenses.

Individuals may provide information confidentially for consideration during the audit of the Regional Arts Commission of St. Louis to the State Auditor's Whistleblower Hotline by calling 800-347-8597, emailing moaudit@auditor.mo.gov, or by visiting www.auditor.mo.gov/hotline.