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KANAB — A new state audit reveals how a former Kane County treasurer allegedly stole thousands of dollars over three years without being detected.
And Utah State Auditor John Dougall is using the case to teach elected officials in other counties how to keep it from happening to them.
"Unfortunately, it's a painful lesson, but it's a lesson that has sent a wake-up call all throughout the state," he said.
The failings listed in the report are mostly associated with the treasurer, who had complete control of the money going in and going out. But the report also dings the county commissioners and auditor for inadequately overseeing the finance practices.
Ultimately, at the end of the day, the County Commission is responsible for internal control within the county.
–John Dougall, state auditor
"Ultimately, at the end of the day, the County Commission is responsible for internal control within the county," Dougall said, adding the report heightens opportunity for it to improve.
A state audit in March identified $90,791 in misappropriated or missing money linked to former treasurer Georgia Baca, who resigned the day the report came out.
Auditors found 46 "improper and illegal" transfers totalling $34,600 made from Kane County to accounts belonging to Baca from January 2013 to January 2016. A ledger of property tax payments shows $56,191 in cash, which Baca was responsible for, came into the office but was never deposited, according to the audit. About $2,600 remains unaccounted for.
A Utah Attorney General's Office investigation into the allegations is ongoing. No criminal charges have been filed against Baca.
The report released Wednesday is an extension of the earlier audit of the small southwestern Utah county of about 7,200 residents. It says elected officials failed to work together to oversee county finances.
"Sometimes when it comes to separately elected offices, there's a tendency to carve off different territory and not to encroach on territory. We've been making it clear to folks that there are joint responsibilities between the treasurer, the county auditor and the commission," Dougall said.
Related
Audit: Missing money from Kane County coffers linked to county treasurer
A review of Kane County bank accounts has identified $90,791 in misappropriated or missing money linked to the county treasurer, according to the Utah State Auditor's Office.The report also showed that the auditor was not doing secondary reviews of the reconciliation of some county accounts.
The commission cooperated with the investigation and worked to promptly correct the weaknesses that allowed theft and lax oversight to occur, according to the report.
"We have felt such a serious impact from the fraudulent transactions identified and realize that these matters extend beyond the individual perpetrating the fraud into the public trust with our entire system," Commission Chairman Dirk Clayson wrote in a letter to the auditor's office.
The commission, he said, has taken steps to correct the problems, including requiring the auditor and clerk to keep a list of all outside bank accounts receiving county funds, keep record on all bank transfers and have two signatures on all checks. The county has also appointed a new treasurer. Email: romboy@deseretnews.com Twitter: dennisromboy
