Melodie Phelps, News Editor
CNHI
8-18-10 —
Findings from the final audit for former Wayne County Clerk Melissa Turpin are being referred to the Kentucky State Police and the State Attorney General's Office, according to information released by State Auditor Crit Luallen last week.
The final audit covers the period from January 1, 2009 through October 20, 2009, when Turpin resigned after pleading guilty to charges of theft and abuse of a public trust. Those charges stemmed from findings of the 2007 and 2008 audits, in which auditors found a total deficit of $139,986.
This latest audit, which was released on Thursday, August 5, found a deficit of $43,242 in Turpin's official bank account. The deficit resulted from undeposited receipts totaling $7,540, operating disbursements of $3,972 that lacked supporting documentation of explanation, and current monies of $31,730 used to pay prior year excess fees.
As part of her plea agreement and formal sentencing on November 17, 2009, Turpin paid the Wayne County Fiscal Court $139,986 which covered 2008 excess fees of $108,256 and the current year monies of $31,730 used to pay prior year excess fees.
As a result, $11,512 is still due, according to the audit. That matter has been referred to Kentucky State Police for further review, according to the Auditor's Office.
Concerning the $7,540, during the review, auditors recapped each daily checkout sheet from January 1, 2009 through October 20, 2009, compared each total to each daily bank deposit and concluded there was a total of $7,540 in undeposited receipts for the period. Auditors also noted that Turpin did not maintain a receipts ledger. This matter was also referred to Kentucky State Police.
Concerning the $3,972 that lacked supporting documentation, auditors met with the former clerk on March 9, 2010 and requested but did not receive access to all supporting documentation and/or explanations for operating disbursements tested for the period that ended October 20, 2009.
Based upon a recap of canceled checks (the former clerk did not maintain a disbursements ledger), Turpin is responsible for the following disbursements that either lack supporting documentation or are considered unnecessary expenditures:
• County Clerk—Undocumented Travel Expenses, $1078
• Employees—Undocumented Travel Expenses, $320
• Office Supply—Undocumented, $503
• Advertising—Undocumented and Unallowable, $662
• Hotels—Insufficient Documentation, $1194
• Commonwealth of Kentucky—Undocumented, $20
• Training—Undocumented, $195
Two other issues have been referred to the Kentucky State Police and the State Attorney General's Office.
The first involves two instances where motor vehicle transactions were voided. According to the audit, individuals came into the current county clerk's office inquiring about vehicle titles. Neither had received vehicle titles after licensing and both taxpayers had proof of payment along with the certificate of registration.
The audit states, "After researching these incidents, auditors determined the former county clerk, identified by the user identification number, had collected the monies from the taxpayers but had voided the transactions in the AVIS system the same date. Neither the money collected nor the transactions were included on the usage tax, registration fee, or title fee reports as being collected on that date."
The audit noted that the former county clerk "should not have placed taxpayers at risk by voiding motor vehicle transactions. If a taxpayer had been involved in an accident or had their car tags checked for any reason, law enforcement would have noted from the AVIS system that the plate and decal had been canceled."
The second issue that was referred to both agencies involved the releasing of liens on vehicles owned by Turpin. The audit noted that several of the former county court clerk's personal vehicle liens were inappropriately released through the AVIS system and transferred.
The audit notes, "Auditors requested and received a report of all liens that were released during the 2009 calendar year from the Department of Transportation. We tested a sample of liens released by sending confirmation to secured parties of record. The results of confirmations resulted in additional liens being released inappropriately."
Other audit findings include:
• The former county clerk should have presented a settlement of accounts to fiscal court upon vacating the office.
• The former county clerk should have issued receipts for all monies received in her office.
• The former county clerk should have prepared and submitted quarterly financial reports to the Department for Local Government.
• The former county clerk's office had a lack of controls over collection of receipts, payment for goods and services, monthly bank reconciliations, and financial statement preparation.
• The former county clerk should not have commingled public and private funds.
• The former county clerk should pay additional occupational tax due of $170 to fiscal court.
• The former county clerk should have properly accounted for receivables.
Turpin had no response to the audit report.
The report in its entirety can be accessed on the internet at www.auditor.ky.gov.
