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Auditor Galloway announces audit of Small Business Regulatory Fairness Board

Dysfunction hampers board’s representation of small businesses

From the office of State Auditor Nicole Galloway

Missouri State Auditor Nicole Galloway today announced an audit of the Missouri Small Business Regulatory Fairness Board. The board issued its required annual report last week, which describes an organization operating on a “sub-par level,” unable to meet its statutorily required duties.

“Missouri’s small businesses contribute tremendously to the state’s overall economic well-being. They are the backbone of our state’s economy.  This board should be the voice of small businesses in combating regulatory red-tape,” Auditor Galloway said. “The level of dysfunction reported by the board is unacceptable and does a disservice to small business owners across Missouri.”

The annual report is the board’s first in several years. In it, the board reported a number of serious internal problems, including failures in proper tracking of board documents and archives resulting in missing records, as well as board vacancies that undermine the board’s ability to operate.

Upon reviewing the report, Auditor Galloway announced her office would begin an independent audit of the entity to provide recommendations for improvements. The board was created by the legislature in 2004 to provide input to state agencies on rules adversely affecting small businesses. State law provides for staff support from the Missouri Department of Economic Development.



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