A Missouri State Auditor investigation found that two former Webster Groves employees improperly used city purchasing cards for personal expenses, including trips to adult entertainment venues, a cannabis store, rideshare services, travel, and an Airbnb rental. The report concluded that weak internal controls allowed the misuse, while city officials say the money has been repaid and stronger oversight measures are now in place.
Webster Groves Audit Exposes Misuse of City Credit Cards
WEBSTER GROVES, MO – August 6, 2026 (STL.News) – A Missouri State Auditor investigation has found that two former Webster Groves employees improperly used city-issued purchasing cards for personal expenses, including charges at adult entertainment establishments, a cannabis store, rideshare services, travel, restaurants, and an Airbnb rental. The investigation concluded that inadequate oversight of city purchasing cards enabled more than $4,300 in improper spending during 2024.
State Auditor Details Improper Spending
According to State Auditor Scott Fitzpatrick, the investigation uncovered significant weaknesses in the city’s oversight of employee purchasing cards.
The report states that a former city accountant made $884 in unauthorized purchases between May and December 2024. Those charges included rideshare trips to and from work, a purchase at a cannabis dispensary, and transactions at adult entertainment establishments. The former employee has repaid $781, leaving $103 still owed to the city at the time the report was issued.
The investigation also found that the city’s former finance director made 61 personal credit card transactions totaling $3,522 between January and October 2024. The purchases included airline tickets, an Airbnb rental, grocery stores, restaurants, and fuel purchases. Those charges were reportedly labeled as “Inadvertent Personal Charge” on monthly transaction logs, and the former finance director reimbursed the city during September and October 2024.
Additional Concerns Identified
Beyond the personal spending, auditors identified purchases they said were either not properly documented or may not have been prudent uses of public funds.
Among those transactions were purchases of a personal office refrigerator and Apple AirTags by the deputy city manager. The report also found that the former accountant used the city purchasing card for gasoline and oil expenses instead of following the city’s mileage reimbursement policy.
The audit further noted concerns regarding employee separation benefits.
According to investigators:
- The former finance director received sick leave payments after his resignation date.
- The former accountant continued receiving pay for 13 days after being terminated.
- Auditors said the city could not provide documentation supporting those decisions.
City Says Misconduct Was Internally Discovered
In a statement issued after the report’s release, Webster Groves officials said city finance employees—not outside investigators—first discovered the purchasing card irregularities while reviewing overdue monthly reports.
City officials said they immediately escalated the findings, self-reported the issue during the city’s annual external financial audit, and cooperated fully with the state investigation. They also noted that the city’s independent auditors later issued an unmodified, or “clean,” opinion on the city’s financial statements.
The city stated that:
- Both employees are no longer employed by Webster Groves.
- All improperly charged funds have now been reimbursed to the city.
- New internal controls have been implemented to strengthen oversight of purchasing cards.
- Employees who fail to submit required documentation on time now lose purchasing card privileges.
Auditor Recommends Stronger Oversight
The Missouri State Auditor recommended that Webster Groves strengthen its purchasing card oversight by:
- Conducting timely reviews of monthly credit card statements.
- Strictly enforcing policies prohibiting personal purchases.
- Ensuring sales tax is not improperly paid with public funds.
- Improving documentation for discretionary spending, meals, and employee reimbursements.
- Following personnel policies consistently when employees leave city employment.
What Happens Next
The Auditor’s Office indicated that the investigation identified control weaknesses rather than recommending additional criminal investigation. Webster Groves officials say they have already implemented several corrective measures and will continue evaluating financial controls to reduce the risk of future misuse of taxpayer funds.
