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St. Francois County approves $75,000 settlement payment; officials debate use of prosecutor handling fund
Summary
County officials voted to issue two checks totaling $75,000 to Lisa Davidson to resolve a lawsuit. The prosecutor cautioned that using the office's handling-fee fund could trigger a state audit and may not be authorized by statute; commissioners shifted part of the payment to a general-fund liability account.
St. Francois County officials voted during a county meeting to issue two checks totaling $75,000 to Lisa Davidson to resolve a lawsuit, drawing $30,000 from fund 00111680200 and $45,000 from fund 00100093100.
The vote followed a discussion about whether the prosecutor’s handling-fee fund could lawfully be used to cover back pay included in the settlement. The county’s prosecuting attorney warned that prior audits found improper uses of that fund and said the statute governing “handling cost” funds may not authorize the payment being considered.
The prosecuting attorney said, “that particular fund is a it's a handling cost fund, which is governed by statute,” and described past audit findings that flagged use of the fund for bonuses and other payments outside defined compensation. The attorney said the office had been using the fund for litigation costs but cautioned that using it for back salary could prompt another audit.
A county staff member addressing payroll compliance said the wage portion “to be compliant with IRS regulations, it would have to be paid out of the wage line item and the corresponding benefits, taxes, and benefits would be paid.” The staff member also noted the 2025 budget did not include this payment but the general fund contains an unfunded-liability line intended to cover wage-related liabilities.
After the discussion, a commissioner moved to “process check out of the fund 00111680200 in the amount of 30,000 and process another for 45,000 out of the 001 00093100 for the 45,000 both made out to Lisa Davidson pursuant to this settlement.” Another commissioner seconded the motion. The motion was approved by roll call; the checks were expected to be cut in the next few days.
Officials noted the county’s stated share of the settlement was $75,000, with the county’s insurer covering the remainder. The prosecuting attorney reiterated the concern that using the handling-fee fund for salary-related settlement payments could trigger a state audit similar to one referenced from 2019 into prior uses of the fund.
The meeting included no additional agenda items and adjourned shortly after the vote.
