Published: October 14, 2009 12:14 pm      

Luallen releases 2008, 2009 audits of the Elliott County Clerk

Refers to the Kentucky Attorney General

Nov. 14, 2009 — State Auditor Crit Luallen today released the 2008 and 2009 audits of former Elliott County Clerk Reeda S. Ison, referring the audits to the Kentucky Attorney General’s Office.



The audits found that the former clerk had a $13,087 deficit in her 2008 account and $10,977 deficit in her 2009 account, which was audited until April 20, 2009.



The total of the unresolved deficits, dating back to 2001, in the former clerk’s office is $67,369 and is owed to the Internal Revenue Service, state, Elliott County Fiscal Court, and other Elliott County taxing districts.



Earlier this year, the former county clerk was indicted on 20 charges of official misconduct and 20 charges of misapplication of entrusted property relating to the deficits for 2001 through 2007. She pleaded guilty to all charges.



The former county clerk’s guilty plea included an agreement to pay restitution in the amount of $27,964 covering deficits for calendar years 2001 through 2007. The 2008 deficit was not included in the plea agreement.



Restitution has not yet been paid, according to the audit.



Auditors recommend the former county clerk eliminate these deficits by paying restitution to the Attorney General’s office as agreed to by court order and by depositing personal funds of $13,087 to cover the 2008 deficit.



According to the audit, auditors will continue to report on these unresolved deficits until restitution has been paid in full.



The 2008 audit findings range from the $13,087 deficit to the clerk owing $5,893 of state retirement withholdings from her the 2008 account.



The audit also found that the clerk should have prepared franchise tax bills and properly maintained payroll records and timesheets.



The 2009 audit reports a $10,977 deficit and found that the former clerk owes $3,453 withholdings to taxing authorities.



The audit also found that the former clerk did not prepare delinquent tax reports or properly prepare financial reports.



The audit recommends that the Elliott County Clerk’s office improve internal control procedures.



The audit gives the following recommends for improvement:



• The county clerk should recount and deposit cash daily. The county clerk could document this control process by initialing the deposit ticket.

• The county clerk should periodically compare a daily bank deposit to the daily checkout sheet and then compare the daily checkout sheet to the receipts ledger. Any differences should be reconciled. The county clerk could document this by initialing the bank deposit ticket, daily checkout sheet, and receipts ledger.

• The county clerk should document periodic comparisons of daily AVIS computer totals to receipts for usage tax, license fees, and tangible personal property taxes.

• The county clerk should document the reconciliation of the bank balance to the general ledger.

• The county clerk should regularly compare actual disbursements to the budget. Budget amendments should be obtained if necessary.

• The county clerk should follow control procedures established by the county payroll ordinance.

• The county clerk should periodically compare expenditures to invoice files to assure that invoice files contain sufficient documentation of operating expenditures.

• The county clerk should cancel paid invoices to document payment.

• The county clerk should be involved in the day-to-day operations of the office in order to be able to identify significant departures from established procedures and to exercise adequate oversight of the office.



This report, in its entirety, can be accessed on the Internet at the following site: www.auditor.ky.gov. The former clerk’s response to the audit findings is located in the audit.