JEFFERSON CITY, Mo. — The last Democratic statewide official in Missouri wrapped up her tenure as state auditor this week saying her work helped uncover hundreds of millions of dollars that were mismanaged, wasted or stolen.
Nicole Galloway, who has served in the watchdog post since 2015, said investigations undertaken by her office resulted in 81 criminal charges being brought against corrupt public officials.
"I've worked closely with law enforcement to bring those who break the public trust to justice," Galloway said as she prepares to hand the reins of the office to Republican Treasurer Scott Fitzpatrick on Jan. 9. "Taxpayers deserve someone in government who is looking out for them, not politicians and special interests."
Galloway, 40, announced more than a year ago that she would not seek office in the 2022 election, opening the door for Republicans to make a clean sweep of state government.
Her announcement came after she made an unsuccessful bid for governor in 2020, losing to Republican Gov. Mike Parson by nearly 17 percentage points in a state that has grown increasingly tough for Democrats.
The GOP controls both chambers of the Legislature, the state's two U.S. Senate seats, the governor's office and all other statewide offices, except for auditor, which will change hands Tuesday.
Galloway, a certified public accountant, was appointed auditor by former Gov. Jay Nixon, a Democrat, following the 2015 death of Auditor Tom Schweich. Voters gave her a full, four-year term in 2018. Prior to her tenure, she was Boone County treasurer.
In a closing report, Galloway said fraud cases spurred by her office's investigations revealed an estimated $380 million in misspent taxpayer dollars.
Among the bigger findings was a 2017 report into the Putnam County Memorial Hospital that led to the eventual discovery of a multi-state $1.4 billion billing scheme that used small rural hospitals to submit fraudulent claims.
Galloway found $90 million in illegal billings were passed through the 15-bed hospital, marking the largest fraud exposed in the history of the office.
"The unraveling of this billing scheme began right here in Missouri with a state audit, and I'm proud of how my staff worked with the Department of Justice and other federal agencies to bring this fraud to an end," Galloway said.
In another audit, the office discovered a seven-year scheme by the former city clerk of Viburnum in Iron County to adjust customer utility accounts by more than $100,000 after pocketing cash payments, and then destroying records and other evidence.
The audit also found that Dana Mayberry adjusted her personal utility account to avoid paying for water and sewer services. After pleading guilty, Mayberry was ordered to pay restitution to the city.
In 2018, an audit of the Kinloch Fire Protection District in north St. Louis County resulted in the former board president and fire chief pleading guilty to federal charges of stealing. The audit revealed more than $72,000 in improper purchases and cash withdrawals from the district's bank account, and an additional $25,000 in spending that could not be verified as appropriate.
While many of the auditor's duties are perfunctory checks of government spending, her reports also have generated political controversy.
In 2020, an audit of Republican U.S. Sen. Josh Hawley's short tenure as Missouri's attorney general found paperwork and management problems that may have cost taxpayers unnecessary amounts of money.
Hawley, a Republican who served as attorney general from January 2017 to January 2019, dismissed the report, saying despite some higher costs, overall spending in the office went down.
A 2019 audit also dinged Parson for questionable spending during his time as lieutenant governor. The governor, for example, was reimbursed with taxpayer dollars to use his personal vehicle to attend entertainment events that did not appear necessary to office operations or a reasonable use of state funds.
"We've uncovered hundreds of millions of public dollars that were mismanaged, wasted and stolen," Galloway said. "Programs that rely on public funding have been made more efficient, less wasteful and more transparent because of our audits."
