Missouri state Auditor Scott Fitzpatrick has launched a review of the Regional Arts Commission of St. Louis’ finances.

The audit is in response to complaints from a whistleblower who alerted the office to possible misuse of funds, Fitzpatrick said Tuesday. The auditor’s office then reviewed documents provided by RAC during an initial investigation before launching a full audit.

“We have verified the veracity of the whistleblower complaint, and have seen with our own eyes at this point records that give us enough concern that we want to proceed with an audit,” Fitzpatrick said.

The auditor’s report could be released late this year or in early 2027, he added. It would then be up to state and local authorities to follow up on any potential misconduct.

In an unsigned statement, RAC said it receives an annual audit from a firm selected by the offices of the St. Louis mayor and St. Louis County executive and that it shares the results publicly. “[We] are confident the findings from the state will mirror the success we have come to expect at the local level,” the statement says. 

“We welcome the opportunity to provide documentation and context regarding our financial practices and grantmaking processes. As always, RAC will continue to focus on serving the St. Louis region’s arts and cultural community and maintaining the public’s trust,” the statement adds.  

Potential issues identified in the state auditor’s initial investigation include the possibilities that RAC’s administrative expenses exceed what is allowed by statute, that leaders issued bonuses disallowed by the state constitution and that large grants were issued with no follow-up to ensure the money was used properly.

Fitzpatrick said his actions are not related to the commission’s choice of grant recipients.

Changes to the grant process

RAC distributes annual grants to arts organizations in St. Louis and St. Louis County. It is funded by a tax on hotel and motel stays. The commission distributed $3.7 million last year.

The organization suspended grant applications for fiscal 2026 due to “continuing financial volatility” and a new five-year plan, according to a note on its website. It will use applications received in 2025 as a guide for its 2026 grants.

“This pause allows RAC to support eligible and high-scoring 2025 grantees and applicants while navigating financial challenges and planning for a stronger, more sustainable grant program in the future,” the note says.

RAC publishes a list of its annual grants online.

Vanessa Cooksey became president and CEO of the organization in 2020 after it spent a year without a permanent leader. Previous chief Felicia Shaw had stepped down in November 2019. Neither Shaw nor RAC provided a public explanation for Shaw’s departure.

Some smaller organizations had complained that during Shaw’s tenure they stopped receiving annual grants.

The Regional Arts Commission had a $13.4 million budget in 2024, according to tax documents. Cooksey received a $196,253 salary and $28,652 in additional compensation.

Continuing a process begun by Shaw, Cooksey oversaw changes to grant applications that she said were meant to simplify the process – including removing a longstanding split between its funding mechanisms for large and small organizations.

A key arts funder after the coronavirus pandemic

In November 2022, the St. Louis Board of Aldermen voted unanimously to direct $10.6 million from the American Rescue Plan Act to RAC. A measure that would have allocated another $1.6 million failed to pass the St. Louis County Council, so RAC was statutorily required to distribute ARPA funds only to groups based in St. Louis.

RAC has distributed $9.5 million of the ARPA money so far, funding 195 individual artists and 75 organizations.

Arts leaders said in 2022 that the sector supports more than 19,000 jobs and generates nearly $600 million a year – more than all local sports franchises combined.

The federal money was a boon to St. Louis artists and arts organizations following a steep decrease in funding at the height of the coronavirus pandemic due to decreased tourism in the region.

Tax revenues earmarked for RAC decreased from $9.5 million in fiscal 2019 to $2.8 million the next year. Tax revenue directed to RAC have increased but still lag behind the pre-pandemic total. The commission reported $7.5 million in tax revenue received in fiscal 2024.

RAC presented a new five-year plan with much fanfare in March 2020 but had little initial opportunity to implement it. Not long after, St. Louis officials put limits on public gatherings to tamp down spread of the virus that causes COVID-19.

Commission officials released a new five-year strategic roadmap in December 2025.

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