The Missouri State Auditor’s Office recently concluded its investigation of the De Soto Public Library after state Rep. Bill Lucas complained the library awarded a renovation project to the highest bidder. The investigation concluded an audit was not warranted, said Trevor Fox, spokesman for the State Auditor’s Office.
Lucas, a Republican who lives just outside of De Soto and represents District 115, requested a state audit after the De Soto Library Board of Directors voted in November to hire Tom Madden and Sons Construction of St. Louis, the highest of four bidders for a $209,986 project. He claimed the board did not spend tax dollars in a fiscally responsible way.
Rather than a full audit, the State Auditor’s Office conducted an investigation, which is done to determine if an audit is warranted.
At the conclusion of the investigation, the office recommended the library revise its procurement policies to require formal, documented, bid/proposal evaluations.
According to the two-page investigative summary released on June 4, the office received a complaint that the library mismanaged public funds and lacked transparency in choosing the most expensive contractor. In its investigation, the office reviewed all documentation related to the procurement process, including bid proposals, board meeting minutes, bylaws and policies related to procurement and the board’s reasoning for choosing the highest bid, the document stated.
The Auditor’s Office found that Madden offered a shorter project timeline and appeared to have a more comprehensive proposal than the other bidders.
However, the Auditor’s Office noted the board did not document its reasoning for selecting a proposal that was not the lowest cost and did not have procurement policies and procedures in place at the time the bid was awarded. It said in November that the library did not have a specific purchasing policy and instead followed its bylaws.
“These bylaws do not require bidding or requests for proposals but instead rely on the judgment of the Board of Trustees and the library building committee to direct the library director to ‘obtain quotes, bids, proposals or offers related to the building, grounds, equipment or other physical assets of the library,’” the auditor’s report said.
The report also said the board developed and approved a procurement policy on Feb. 9 after the Auditor’s Office sent an initial investigative letter to the library. The document said neither the bylaws nor the newly approved policy requires a documented bid or proposal evaluation process.
The “conclusion” of the investigative summary said, “Our review found the board selected the highest cost proposal for the door replacement project. While the board’s response provided their reasoning for selecting the contractor, opportunities exist to improve the transparency of procurement decisions by performing a formal, documented bid/proposal evaluation process.
“This would allow the library to easily report the reasoning for procurement decisions when asked by citizens or other bidders. We will close the investigation with recommendations for the board to revise its newly created procurement policies to require formal, documented, bid/proposal evaluations. The board should also refrain from awarding employee bonuses in violation of the Missouri Constitution.”
Lucas said he did not wish to comment on the Auditor’s Office’s investigation.
The library board released a written statement on June 4.
“The Missouri State Auditor’s review of the De Soto Public Library did not find fraud, theft, personal gain, bid rigging or misuse of public funds,” the board statement said. “The report also did not conclude that the board selected the wrong contractor for the library renovation project.
“In fact, the report acknowledges that the contractor selected by the board submitted a more comprehensive proposal, with greater detail regarding project scope, scheduling, ADA compliance and cost breakdowns than competing proposals.”
The board said discussions regarding the renovation project and contractor selection took place during public meetings, and the contract was awarded by a unanimous vote in open session.
The board also said the auditor’s “primary recommendations involved strengthening documentation procedures and procurement policies.”
“The board has accepted those recommendations and has already taken steps to implement improvements,” the statement said. “The report also raised concerns regarding a longstanding employee holiday bonus practice.”
Joni Roland, the board’s president, said the payout of a total of $1,500 now will be treated as a stipend.
The library is a separate, independent entity not governed by the city of De Soto, although the City Council does appoint the library board members.
The project
The renovation project, much of which was to make the library compliant with the Americans with Disabilities Act (ADA), included the replacement of the entrance doors with a sliding door and updates to the restrooms.
The library board received four bids for the project and reviewed them on Nov. 10: $127,506 from Harms-Troesser Construction Co. of Pacific; $153,293 from Boyer Building and Design of De Soto; $208,818 from Colben Construction of Cottleville; and $209,986 from Tom Madden and Sons Construction of St. Louis. Madden was awarded the bid, including an optional add-on that would cost about $6,500 more, bringing the total to $216,486.
When asked, the board told the Leader in December that the bid from Tom Madden & Sons best met the needs of the project and the “lower bids did not provide sufficient clarity, creating a higher risk for unexpected expenses.”
Additionally, the lower bids did not align with a timeline that would allow minimal disruption, according to the library board’s statement.
After voicing his concerns at a De Soto City Council meeting, Lucas asked the Jefferson County Council for support for a state audit, and the council unanimously approved a resolution in January supporting “audits of public entities such as the De Soto Public Library Board (of Trustees) to ensure openness and transparency of public entities in the bidding process for work awarded using public funds.”
According to the State Auditor’s Office, the library has never been audited by the state. The library is regularly audited with the city of De Soto, and the library pays a portion of the audit cost. The library was last audited in October 2023.
On target
Roland said 99 percent of the work is completed. “To date, the library has paid $176,876.80 to the contractor for the remodel, with a final payment remaining following completion of the walk through and any remaining punch-list items,” the library board said in a June 9 statement. “At this time, the project remains on target to be completed within the board-approved budget.”