OPINION: NEEDS WORK - County audit finds gaps in its financial practices A poor audit report for the McCracken County Fiscal Court may serve as a reminder that people who live in glass houses shouldnt throw stones. It wasnt that long ago that the fiscal court went to the mat with then-McCracken County Clerk Jeff Jerrell over finances in Jerrells office, arguing with eventual success that the clerks office required more oversight from the fiscal court. Perhaps it did. We dont care today to relitigate that episode, which ultimately resulted in a ruling in the Kentucky Court of Appeals that gave the fiscal court the control it wanted. But the fiscal courts position in the matter now looks hypocritical in light of its own sloppy practices as highlighted in a recent report by Kentucky State Auditor Adam Edelen. The audit for fiscal 2013 highlighted what the report said were seven areas of either non-compliance with the law or financial weakness. Perhaps most significant was the finding that the county treasurers office made more than $2 million in cash transfers that were not approved by the fiscal court. Specifically, the report said the fiscal court approved $4.3 million in cash transfers, but about $6.5 million was actually transferred. Put another way, one-third of the countys cash transfers were not approved by the fiscal court. A second focal point of the audit was the December 2013 payment of $31,769 to former McCracken County Emergency Management Director Paul Carter. Edelens report said that payment also did not receive proper fiscal court approval. This revelation is not new to those who followed the Carter saga. What is new is the auditors contention that the payment to Carter may have been excessive. The report recommended that the payment be recomputed correctly to determine if the former EMA director should reimburse the fiscal court for overpayment of compensatory time earned. Its the latest strange twist in the Carter episode. Carter resigned his post as emergency management director after the fiscal court declined to remove a reprimand from his file stemming from an altercation between Carter and a tow truck operator at an accident scene. Carter then sought reimbursement from the fiscal court for accumulated sick leave, vacation and 1,521 hours of compensatory time. The fiscal court tentatively approved a payment to Carter, contingent upon receiving documentation of Carters overtime and a legal review of whether payment of the benefits might violate a cap under state law on comp time for certain employees. But the check to Carter was paid and cashed prior to the required documentation being submitted to the fiscal court. That led then-Commissioner Ronnie Freeman to lodge a criminal complaint with the McCracken County Sheriffs office. The matter was ultimately referred to the Kentucky Attorney General, but no charges ensued. The unapproved cash transfers and the premature and possibly excessive payment to Carter do paint a troubling picture. As Edelen Communications Director Stephanie Hoelscher told the Sun, These are not routine findings. We may not have found criminal activity, but we found some issues that may present a risk for fraud. To his credit, newly seated Judge-Executive Bob Leeper has requested a meeting with a representative of the auditors office to discuss the report. Leeper says he wants to be upfront about the problems (which he inherited) and make sure were doing things right. Thats appropriate. If there is to be confidence in the fiscal courts ability to exercise oversight over other county offices such as the county clerk, it has to start with confidence that the fiscal court itself has implemented and adheres to prudent financial policies.
Posted on: Tue, 06 Jan 2015 18:01:00 +0000