Because it doesn't have enough money, Missouri's Office of Administration has built up a nearly $600 million backlog of deferred maintenance at state buildings and facilities, State Auditor Nicole Galloway reported Thursday.
"Available funding has been insufficient to cover state facility capital improvement maintenance and repair needs," the audit reported. "And as a result, the state has a significant deferred maintenance liability."
The audit covered OA's Division of Facilities Management, Design and Construction (FMDC) - which is responsible for the design, construction, renovation and repair of more than 150 state-owned offices and institutional facilities.
"The accumulation of unaddressed maintenance and repair needs will increase the ultimate cost for the related projects," the report said. "Research has indicated deferred maintenance costs increase exponentially over time.
"Minor repair work may evolve into major repairs or even replacement when not addressed promptly."
Although required by state law, the auditors said, the division didn't even "prepare and provide an annual capital improvement long-range plan to the governor during fiscal years 2002 through 2013" - a period that includes parts of the Bob Holden and Jay Nixon administrations and all of Gov. Matt Blunt's time in office.
The audit added: "FMDC personnel indicated a plan had not been prepared (during that period) because the tracking systems used for projects had been insufficient to accumulate information for this plan."
The state began working on improving the process in 2010, "which ultimately led to resumption in preparing the plan in fiscal year 2014," the report said.
Budget withholdings over the years made the problem bigger, the auditors said, by limiting access to the money for the entire year or, in many cases, until the last weeks or days of a business year.
"When authorized transfers from the (general revenue fund) to the (Facilities Maintenance Reserve Fund) are not made," the audit explained, "monies are not available for capital improvement maintenance and repair needs.
"In addition, restrictions of transfer appropriations make it difficult to plan and address maintenance and repair needs in the current year and may cause postponement of projects to future years."
In its response included with the audit, the division agreed "necessary capital improvements and repairs need to be adequately funded in a timely manner," and it pledged to continue working with the General Assembly, the governor and OA's Budget and Planning division to provide the necessary information, including long-range plans.
However, the division added: "The appropriation of funds and the availability of funds after appropriation are beyond the FMDC's control."
The report said the FMDC also hasn't inspected or completed inspections of some buildings as required by law.
The division told auditors its facility assessment group, which was responsible for performing periodic inspections, was eliminated in 2007 due to a staff reduction.
Currently, the division told the auditors capital improvement inspections are performed only if a specific need arises.
Otherwise, FMDC relies on state agency or operations unit personnel assigned to the state facilities to identify and report capital improvement or maintenance and repair needs.
In its formal response, the division said: "The FMDC concurs with the recommendation to perform periodic inspections of all state leased facilities and will increase the number of inspections at leased facilities."
The audit noted it doesn't cover all state-owned buildings because state colleges and universities and the Transportation Department are excluded from OA's planning requirements, and the Conservation Department's plans don't include project details.