Auditor Fitzpatrick recommends Fairview officials work with law enforcement to seek criminal prosecution for more than $10,000 in missing money

Missouri State Auditor Scott Fitzpatrick is urging city officials in Fairview to seek justice after a review by his office found the former mayor and his girlfriend are responsible for more than $10,000 in missing funds. Fitzpatrick issued a letter to the city this week that details how a lack of segregation of duties and proper oversight allowed at least $10,314 to go missing under the watch of former Mayor Peter "PJ" Janis and his girlfriend, who served as a city clerk.

"Even though the former mayor has admitted the missing money looks 'horrible' and is willing to take responsibility for it, current city officials in Fairview should still work with law enforcement regarding criminal prosecution and take the necessary steps to obtain restitution. These dollars represent utility bills paid by the people of Fairview that should have gone into the city water account and Peter Janis needs to be held fully accountable for apparently diverting these funds into his own pockets," said Auditor Fitzpatrick.

Fitzpatrick added, "When taken together, our original audit, the follow-up report, and this letter provide an extensive list of areas where the city should improve its oversight as well as its overall efficiency and accountability to taxpayers. City officials need to prioritize putting our recommendations into place to help ensure large amounts of money don't go missing in the future."

The letter documents how at least $10,314 in cash was received and recorded in the city's accounting system and/or manual receipt books, but not deposited from June 2023 through April 2024. The missing $10,314 was receipted during the period the former Mayor was responsible for overseeing the city's financial functions, and he and his girlfriend were responsible for making deposits. The missing money represents over 43% of utility payments made with cash during the 11-month period. The letter also notes additional money may have been received but not receipted, recorded, or deposited, resulting in possible additional missing money.

Fitzpatrick's office found the missing money was able to go undetected because the city lacked segregation of duties, proper oversight, and adequate reconciliations of utility billings. The letter notes the city's Board of Aldermen did not segregate duties or ensure sufficient oversight, and receipting controls were inadequate. The city clerks were responsible for almost all the accounting functions and no one verified the deposits after they were made. Additionally, the former mayor received payments and had access to the accounting system, but no one verified that he issued receipt slips, recorded receipts in the accounting system, and deposited those receipts. Additionally, the former city clerks did not perform monthly reconciliations of amounts billed, payments received, bank deposit slips, and bank statements for the period June 2023 through April 2024.

The review conducted by Auditor Fitzpatrick's office was prompted by concerns raised by residents and city officials during the time auditors were conducting a follow-up review of the city. The State Auditor's Office released a performance audit in 2022 that gave the city a "poor" rating and identified improper payments to a former city clerk and conflicts of interest by a former mayor. The follow-up report issued in 2024 found the city had implemented only 3 of the 22 recommendations made by the 2022 audit.