Missouri Treasurer Vivek Malek's office received an overall rating of “good” in a new state audit, but auditors say a long-running disagreement over nearly $35 million in highway project interest still hasn't been resolved. The rating marks the second-highest grade on the state's four-level scale, yet it comes bundled with a pointed recommendation that the treasurer's office hasn't fully acted on.
Auditor Flags Interest Tied to I-70 and I-44 Projects
State Auditor Scott Fitzpatrick's office found that Malek's office had improperly handled more than $35 million in investment earnings connected to major highway projects, according to Newstalk KZRG. A separate account from the Missouri Independent described the figure as almost $35 million in interest tied to the Interstate 70 improvement fund that auditors say was deposited into the wrong state account. Despite the dispute, the audit — covering fiscal years 2023 and 2024 — found no significant problems with the treasurer's internal controls or overall management practices, the station reported.
The issue isn't new. The same concern was first identified in a 2025 audit, and the latest review found the money still hadn't been transferred, per the same report from Newstalk KZRG. Fitzpatrick has said that, unless otherwise provided by law, interest, income or gain from the investment of state money must be credited by the treasurer to general revenue, a position that tracks with Missouri Revised Statutes Section 30.240.
Treasurer Pushes Back on Where the Money Belongs
Malek disputes the audit's conclusion. According to Newstalk KZRG, he argues the interest legally belongs with the highway projects because the money was always intended for transportation improvements rather than the state's general fund. The audit itself maintains the interest should have gone into general revenue under the law in effect at the time, per the Missouri Independent — a direct conflict the two sides have yet to resolve.
The scale of the money involved is substantial. As of June 30, the Interstate 70 project funds had earned more than $81 million in interest and still held almost $1.3 billion, the Missouri Independent reported. Fitzpatrick's office has recommended that the treasurer work with the General Assembly to make sure all investment interest income is handled according to state law, a recommendation reiterated in the Missouri State Auditor's Office's own release on the findings.
Lawmakers Already Changed Course Going Forward
Notably, the dispute applies to past interest, not future earnings. Lawmakers have since allowed interest earned in subsequent years to remain in the road fund, according to the Columbia Missourian. Budget provisions covering fiscal 2025 and the then-current fiscal year, fiscal 2026, explicitly directed interest receipts tied to the I-70 project — along with money set aside for Interstate 44 work — to be deposited into those project funds going forward, the Missourian noted.
A Second Finding Malek Didn't Contest
The audit also flagged a separate issue: the treasurer's office failed to conduct annual audits of the MOScholars tuition assistance program as required by law. Unlike the interest dispute, Malek accepted this finding, according to the Missouri Independent. The program issued $8.4 million in tax credits in fiscal 2023 to match donations to organizations authorized to offer tuition vouchers, the outlet reported. Malek said his office is now working to put a contract for the required MOScholars audit out for bid.
Taken together, the audit paints a picture of an office that largely passed muster on management and internal controls while facing a specific, unresolved fight over where tens of millions of dollars in highway interest should legally sit. With the money still not transferred as of the latest review, the disagreement between Fitzpatrick's office and Malek's office appears far from settled.
