A new report from State Auditor Scott Fitzpatrick reveals how a taxpayer-funded shopping spree perpetrated by the former Deputy City Clerk of the City of Kennett resulted in thousands of dollars in inappropriate purchases such as a couples intimacy game, an ovulation kit, pregnancy tests, and a bottle of rum. The report, which gives the City of Kennett a rating of “poor,” finds the city has lacking oversight and controls that allowed former Deputy Clerk Leslie Osorio to misappropriate at least $79,821.
According to Fitzpatrick, his office has worked directly with law enforcement to ensure they have everything they need to prosecute Osorio to the fullest extent of the law. It’s outrageous, he added, 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, such as a 43″ smart TV and the complete collection of the Madea movies on DVD.
He added it’s equally disturbing to see the city failed to have adequate oversight in place that could have prevented this egregious misuse of taxpayer funds.
According to Fitzpatrick, “I am encouraged that city officials have agreed with all of our recommendations and have committed to complying with them as quickly as possible.”
The report documents how former Deputy Clerk Leslie Osorio made personal and questionable purchases totaling $11,799, using her city-issued Walmart credit card. Osorio admitted items totaling $3,747 were personal in nature and could not provide a city purpose for additional items totaling $8,052. The improper purchases include large quantities of food items, clothing, home decor items, personal care items, toys, games, and alcohol. Items the former Deputy Clerk admitted to being personal included a “Santa Gangsta” men’s fleece sweatshirt, a Powerpuff Girls™ shirt, along with other clothing and food items. Items Osorio could not provide an explanation for include a Sharper Image® percussion massager, personal lubricant, a “Let’s Get Deep” intimacy game for couples, a Kitchenaid® deluxe stand mixer, My Little Pony™ toys, and a Better Homes and Gardens® fake fireplace.
The report also documents how Osorio paid herself and her husband, who worked part-time for the fire department, over $61,700 for time they did not work and for other reasons that were otherwise not allowed. The former Deputy Clerk Osorio paid herself $35,440 for 783 hours of unallowed overtime. For example, during 2021, the Deputy Clerk averaged 33 hours of overtime per week for her additional duties with the fire department when she was only supposed to work 20 overtime hours per week for this work, according to her own testimony. Additionally, a review of her city-issued Walmart credit card activity and her time records indicate she was making personal purchases or was sick when she claimed she worked. She also paid herself $15,500 in improper stipends during the audit period with payments ranging from $150 to $500 per pay period. Osorio was also responsible for entering her husband’s payroll into the accounting system and improperly paid him a total of $4,114. The report also found the former Deputy Clerk paid herself for unearned or already-used vacation leave valued at over $3,000, and did not pay for approximately $2,700 in employee benefits she received. Additional payments to Osorio and her husband totaling approximately $17,300 may also have been improper.
The report also details how Osorio was able to get away with the misappropriation of city funds because the City Council and the City Clerk did not provide adequate oversight or sufficiently review or approve disbursements. The report also notes how inaccurate and missing payroll records allowed payroll overpayments to go undetected. Additionally, city officials allowed numerous questionable and/or unnecessary purchases to occur, and the city does not have any guidance or policy regarding the use of city funds to purchase food, gifts, and other items. City officials also failed to review credit card statements or related supporting documentation prior to payment and instead set the credit card accounts, including the city Walmart credit card, to be paid automatically. The audit recommends improved segregation of accounting duties as well as appropriate reviews and monitoring procedures.
Other findings in the audit include the city’s failure to consistently comply with the Sunshine Law or sufficiently document discussions to demonstrate Sunshine Law compliance, insufficient controls over the computers in the City Clerk’s office, and the failure of city personnel to follow city code or Missouri Secretary of State guidance regarding retention of electronic communication sent via text messages.
The full audit report will be released at 10 a.m. today (Thursday).
Osario was charged with stealing in February in Dunklin County. A preliminary hearing is in July.