Missouri Auditor Grades State Treasurer Office
A new audit finds the Office of State Treasurer lacks clear legal authority to retain certain investment interest income.
Updated on Oct. 20, 2026 in Investing
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The Missouri State Auditor has assigned a good rating to the Office of State Treasurer following an annual review. However, the report recommends that the office begin crediting investment interest income directly to the state general revenue fund.
Why it matters
The audit concluded that the office lacked the necessary legal authority to retain interest income within specific project funds instead of the general revenue account. Ensuring proper allocation of state funds is critical for maintainining transparency in government financial management.
In fiscal year 2024, the office credited $364,000 to the I-70 Project Fund and $34,337,000 to the OA I-70 Project Fund. An additional $115,000 in interest was credited to the State Road I-44 Improvement Fund during fiscal year 2025.
The players
State Auditor
This official serves as the chief accountability officer for Missouri, responsible for ensuring that state agencies and offices manage taxpayer funds according to the law.
Office of State Treasurer
This government entity is responsible for managing the state's investment portfolio, banking services, and the safeguarding of public funds.
The details
The audit conducted a follow-up review of legislative testimony regarding the creation of several state accounts. Findings indicate that funds including the State Road I-70 Project Fund and the State Road I-44 Improvement Fund were established separately from the main State Road Fund, complicating interest distribution.
Timeline
Fiscal year ended June 30, 2024: The office credited interest to specific project funds.
2024 legislative session: The State Road I-44 Improvement Fund was created.
Fiscal year ended June 30, 2025: Interest was credited to the I-44 fund.
Market Dynamics
The audit findings highlight potential discrepancies in how state-level accounts comply with Missouri state legislative fund creation statutes. This oversight marks a departure from how the Office of State Treasurer has interpreted the legal requirements for interest allocation.
For residents, this audit ensures that state investment interest is properly accounted for within the broader general revenue fund. The move aims to increase transparency regarding how millions of dollars in interest from project funds are handled.
The takeaway
The audit serves as a reminder of the importance of statutory compliance in managing large-scale public investment funds. Officials are encouraged to align financial processes with current legal interpretations to ensure full transparency for the state.
Further reading
For more on financial oversight in the state, visit Missouri Investing.
More information
Review the full state treasurer annual audit report for detailed findings.
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Do you trust local government offices to correctly allocate public investment interest income?
