HAMILTON, Mont. (AP) - Ravalli County’s accounting mess happened because the office of the treasurer failed to fulfill its duties, an independent auditing firm says.
The Ravalli Republic reports (https://bit.ly/MmZVUK) that Jim Woy of Anderson ZurMuehlen of Butte filed a status report Friday with Ravalli County Attorney Bill Fulbright after the first two weeks of the investigation.
“At this point, it is apparent the duties of the Ravalli County treasurer were not properly executed and the state of the treasurer’s office was in disarray,” the report stated.
Treasurer Valerie Stamey was put on paid leave on Jan. 23 after falling months behind in depositing money and providing disbursements and financial reports. Two days before that at the last public hearing Stamey attended, she said the county’s books were a mess when she was appointed in September. Stamey alleged files were missing and that the office had allowed tax liens to be sold illegally.
Fulbright announced Friday that retired District Judge Nels Swandal will lead an independent investigation into Stamey’s allegations.
“We are hoping that his investigation will not take a long time,” Fulbright said. “We are hoping that he can get to the heart of the matter.”
Swandal retired recently after 18 years as district judge in Park and Sweetgrass counties.
“Where his investigation will lead, I do not know,” Fulbright said. “He has the flexibility to consider whatever he might find.”
Woy’s report said that the day Stamey was put on leave, $952,372.78 was found in checks and cash in the treasurer’s office that hadn’t been deposited. County employees deposited nearly $800,000 of that by Jan. 31.
The report also said that hundreds of checks hadn’t been deposited and auditors found piles of paperwork that hadn’t been completed. The report said that about $170,000 in checks and about $1,500 in cash was counted, with most of that having been deposited and receipts generated.
Another problem investigators found was that mills for the open space bond weren’t properly updated. Other mill levies are now being examined as well.
The report said the auditing isn’t likely to be complete until March 20 because the treasurer’s office left so much work undone. The cost for the audit and investigation could exceed the $50,000 set aside the by the commission, Fulbright said.
In September, commissioners appointed Stamey interim treasurer on a 3-2 vote. Over the next four months, three of the office’s most experienced workers quit over what they called a hostile work environment. Stamey said others in the office sabotaged her attempts to learn the job.
In January, commissioners approved spending up to $10,000 to hire retired Beaverhead County treasurer Kathy Allard as a temporary treasurer to get the county’s books up to date.
Also in January they authorized a $4 million tax payment to the state to avoid a $37,000 penalty. The state estimated the county owed nearly $4.5 million, but required a $4 million payment to avoid the penalty. The rest of the payment will be made after the books are reconciled, commission Chairman Greg Chilcott said.
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Information from: Ravalli Republic, https://www.ravallirepublic.com
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