Federal Award Reporting Error Found in Scotland County Audit
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MEMPHIS, Mo. (AP) — An independent audit of Scotland County, Missouri’s 2024 financial statements found the county’s records to be accurate under state-prescribed accounting rules but identified a material weakness in its federal award reporting.
The audit, conducted by McBride, Lock & Associates, LLC and published by Missouri State Auditor Scott Fitzpatrick, determined that the northeast Missouri county failed to properly complete its Schedule of Expenditures of Federal Awards (SEFA), a federally required report detailing the use of grant funds.
Auditors recommended Scotland County implement internal controls to ensure the SEFA fully and accurately reflects all federal expenditures. The reporting issue was classified as a material weakness in compliance and internal control.
In its written response, the county acknowledged the finding and said it would work with its independent auditors to ensure all federal funding is accurately captured in future SEFA reports. County officials also noted they are reviewing internal processes to improve federal grant reporting compliance.
Despite the federal reporting concern, the county received an unmodified opinion on its financial statements under Missouri’s regulatory accounting framework. However, it received an adverse opinion when evaluated against U.S. generally accepted accounting principles, which the state does not require counties to follow.
In 2024, Scotland County received more than $2.1 million in federal funds, primarily from the U.S. Department of Transportation and COVID-19-related assistance through the U.S. Treasury.
The audit reviewed the county’s financial activity for the year ending Dec. 31, 2024, and was completed on Sept. 29, 2025.