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County audits that aren’t audits
reveal little
by Mike Kroll
The Knox County Board
held a special session Tuesday night where they voted unanimously to release a
report from the Moline accounting firm of Carpentier, Mitchell, Goddard &
Company most of us believed was an audit of the finances of the Knox County
sheriff and state's attorney's offices for a three-year period ending November
30, 2006. The 25-page report begins by telling use that it is NOT an audit but
rather and “independent accountant's report on applying agreed-upon procedures”
to the accounting records of the two departments. It took almost a year and
nearly $30,000 to deliver a report that essentially says that the accounting
methods in these two offices were extremely sloppy and that lack of proper
accounting controls potentially created the opportunity for financial
shenanigans.
However, we dare not read
this report as I have just described because the accountants went to great
lengths to qualify this report into meaningless drivel. “These agreed-upon
procedures do not constitute an audit or review of financial statements or any
part thereof, the objective of which is the expression of an opinion or limited
assurances on the financial statements or a part thereof. Also we express no
opinion on Knox County's accounting system or internal control over financial
reporting, or any part thereof. Had we performed additional procedures other matters
might have come to our attention that would have been reported to you”
It should be noted that
this is the same accounting firm that was responsible for Knox County's regular
annual audits during the time period covered by this report. Had they discovered
and reported substantial irregularities they would essentially have been
admitting that their audits were less than meticulous or complete. In fairness
to the accountants, each of their prior annual audits included a “management
letter” to the county board that recommended implementation of some of the same
controls included among this report's recommendations but few if any were ever
implemented before now.
It is made clear in the
report that many of the improved procedures have already been put into effect
and greater responsibility for handling the financial accounting of the sheriff
and state's attorney's offices has been returned to the Knox County treasurer's
office. These changes appear to have been implemented over the last three
months and the report makes note of a much higher level of cooperation between
the two departments in question and the treasurer's office.
To say that this result
is a let down is an incredible understatement. Regardless of whether or not the
finances in these two departments were or were not mismanaged; and this report
takes no position on this point at all; the report can be synthesized into a
single sentence.
Due to the almost total lack of proper accounting procedures or controls,
sloppy record keeping and lack of oversight it is impossible to account with
any certainty exactly how the monies managed by these departments were
collected or spent other than that the apparent size of any discrepancies
doesn't appear to be sizable. (synopsis mine)
Nowhere does this report appear
to support charges of criminal behavior by either former sheriff Jim Thompson
or former state's attorney (now judge) Paul Mangieri and that is no doubt why
Ninth Circuit Judge Ed Danner instructed Knox County board chair Alan Pickrel
that he could finally release the report to the county board. Although this
report was initiated at the behest of the Knox County board and not by any of
the investigatory authorities still looking into the matter at the state and
federal level Judge Danner had initially requested that the report be withheld
from county officials until he, special prosecutor (and former judge) William
Poncin, the Illinois State Police and the FBI had the opportunity to review the
report and okay its release. Presumably, had Danner or any of the investigators
believed that this report contained potentially useful evidence against either
Thompson or Mangieri it would not have been released at this time.
Thompson moved away from
this area shortly after he resigned as sheriff last year and is not available
to seek comment but Mangieri is a sitting judge in the ninth circuit, continues
to reside in Galesburg. Mangieri had clearly read the report closely by Tuesday
evening is understandably pleased. “I am thrilled that the audits have now been
released. I am thrilled that the voters can now, for the first time, see
objectively what these ill conceived, ill advised and ill motivated
investigations have been all about. Nowhere is there in the report even
the suggestion of any criminal wrongdoing on the part of either Sheriff
Thompson or myself. From the very beginning both Sheriff Thompson have
been clear and consistent on this point. I respectfully suggest that the
taxpayers will contrast our consistantcy with the shifting rationalizations
given by those who called for these ill conceived investigations in the first
place.”
Mangieri goes even
further to say, with regard to his tenure as Knox County state's attorney, “the
report does not highlight either poor record keeping or lack of suficient controls
over the handling of money.” He points out that no cash was ever handled
directly by his office and indeed the comments about cash handling contained
within the report are specific to the sheriff's office. Additionally he said:
“If you look at my total
budget for the three year period in question, which totals to an
amount of roughly a million and a quarter dollars, the audit reports that
total expenditures of $5,747.31 had either 'missing, incomplete, or improper
documentation' I quite frankly do not know what that means, in as much as every
request for payment was made by submitting a county pay voucher with
accompanying documentation which was required, otherwise it was not paid.
This statement from the auditors is particularly interesting in as much as in
their report they make the statement that they were not able to locate any
forfeiture case files in the office. This would be true, but it reveals
the level of their lack of understanding of the office, in as much as all drug
forfeitures were not handled by my office, but by a special attorney out of
Peoria on contract with the Appellate Prosecutors Office.”
To put it simply, the
citizens of Knox County have paid nearly $30,000 for an audit that wasn't an
audit, to obtain a report almost a year later that was initially supposed to be
available “within weeks,” and that report is more damning on the county's lack
of adequate financial controls than it is enlightening on the controversy
involving current state's attorney John Pepmeyer with Mangieri and Thompson.
Criminal investigations of sexual harassment against Pepmeyer have long since
been dropped as unfounded while parallel civil cases curiously continue.
Meanwhile we have learned little recently about the status of on-going
investigations into Mangieri and Thompson and the former appears quite likely
to be elected circuit court judge in November.
06/12/08