Transfers of funds meant for investor education, totaling $5 million, from the office of Missouri Secretary of State Robin Carnahan, “do not appear to be an allowable use of fund monies,” according to a new audit report.
The transfers to the Missouri Office of Administration for general revenue purposes included $3.8 million made in November last year, $500,000 in February this year, and $700,000 in June, according to the audit report released Thursday by Missouri Auditor Susan Montee.
The primary source of revenue for the investor education and protection fund, controlled by the secretary of state’s office, includes court awards and recovery of investigation costs pertaining to violations of state securities law. The auditor cites a section of Missouri law that exempts the funds from being transferred to the state’s general revenue fund.
The office of administration contends the transfers were authorized by the Missouri General Assembly during the 2009 legislative session.
The audit report recommends that the secretary of state’s office request reimbursement of the $5 million from the state general revenue fund.
In a formal response included in the audit report, the secretary of state’s office said the office will comply with the auditor’s recommendation.