Missouri State Auditor Scott Fitzpatrick has launched a performance audit of the Regional Arts Commission of St. Louis following a whistleblower complaint alleging possible misuse of funds.
Fitzpatrick said his office began the review after conducting a preliminary investigation and examining records provided by the organization.
“We have verified the veracity of the whistleblower complaint and have seen with our own eyes at this point records that give us enough concern that we want to proceed with an audit,” Fitzpatrick said during a press conference.
The review is a performance audit, which examines how an organization operates — including compliance with laws, efficiency and effectiveness — rather than a traditional financial audit of accounting records.
According to the auditor’s office, potential issues identified during the initial investigation include whether RAC exceeded a state law limiting administrative expenses to 15% of annual revenue, issued employee bonuses that may be prohibited under the Missouri Constitution and failed to properly follow up on some grant awards.
Fitzpatrick said the review is not related to the commission’s selection of specific grant recipients.
RAC President and CEO Vanessa Cooksey said the organization plans to cooperate with the audit.
“We welcome the opportunity to provide documentation and context regarding our financial practices and grantmaking processes,” Cooksey said in a statement released by the organization.
The nonprofit added that it already undergoes an annual financial audit conducted by an independent firm selected by the offices of the St. Louis mayor and St. Louis County executive. RAC said those findings are shared publicly and with leaders in city, county and state government.
“We are confident the findings from the state will mirror the success we have come to expect at the local level,” the statement said.
Founded in 1985, RAC is the region’s largest public funder of arts and culture, distributing grants to nonprofit organizations and individual artists in St. Louis city and county. The organization receives a portion of the hotel-motel tax collected in both jurisdictions.
The tax generated about $7.5 million for the commission in 2024, according to reporting by the St. Louis Post-Dispatch.
The state auditor’s office began requesting documents from RAC in December as part of its preliminary review before announcing the performance audit last week, according to the St. Louis Business Journal.
The Post-Dispatch reported Tuesday that RAC held an emergency virtual board meeting that did not initially provide public access information, raising possible concerns about compliance with Missouri’s Sunshine Law. A lawyer for the commission told the newspaper the organization believed it had complied with state meeting notice requirements.
RAC distributes millions of dollars annually to arts organizations and programs throughout the St. Louis region. The auditor’s final report could be released late this year or early next year.
The St. Louis American’s “Living It” content is produced in partnership with the Regional Arts Commission.
Sylvester Brown Jr. is the Deaconess Foundation Community Advocacy Fellow.