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Auditor: County Clerk's Office Broke Rules
FRANKFORT- A recent audit by the Kentucky auditor of public accounts found that the Madison County Clerk's office violated regulations, including subverting procedures to benefit certain customers.
Specifically, the report alleges that operatives of Madison County Clerk Billy Gabbard were directed to alter public records to get around certain requirements. The report states:
"The county clerk should not alter public records in order to renew motor vehicle registrations that have delinquent taxes. During the audit auditors found the following items pertaining to the renewal of registrations:
* A customer came in to renew a motor vehicle registration, but had delinquent motor vehicle tax liens on other vehicles and would not be able to renew the registration because of the delinquencies. The customer talked to the county clerk and explained that he or she did not have the funds to pay the delinquent taxes.
* The county clerk instructed a deputy clerk to manipulate/change the social security number on this record, therefore removing the issue of delinquent taxes, because the altered social security number was no longer associated with the customer and the delinquent taxes. The customer paid the taxes on the vehicle, and the county clerk subsequently instructed the deputy clerk to change the social security number back.
* On another occasion a relative of the county clerk came in to renew his or her registration. The relative, however, had a delinquent motor vehicle tax lien on another vehicle registered under his or her social security number. In order for the relative to renew this vehicle, his or her social security number was manipulated/changed, again removing the issue of the delinquent taxes, because the altered social security number was no longer associated with this person and the tax delinquencies. The county clerk’s relative paid the taxes on the vehicle and the social security number was changed back.
The county clerk should never intentionally alter public records in order to override the controls in place, and allow someone with delinquent taxes to renew their registration, without first paying the delinquent taxes owed."
According to the report, Gabbard's reply to the charge was: “This is not a general practice, however, at the clerk’s discretion, may be deemed necessary, but must have his prior approval.”
The audit further found that Gabbard, with the help of operatives, subverted administrative controls to renew the vehicle registration on his own car:
"During the audit auditors found the county clerk used a passenger decal on his personal vehicle from July 2008 through January 2009 without renewing his registration and paying for the decal. On Jan. 6, 2009 he renewed his registration and paid.
However, even though the registration was delinquent, he had the deputy clerk waive the penalty and interest, which should have been charged on these delinquent taxes.
While the county clerk has internal controls in place to ensure all decals are accounted for and the correct fees are charged, management chose to override these controls, according to the audit.
Having the county clerk override the internal controls in place personally, creates an atmosphere in the office that the controls can be circumvented at will, and could lead to others trying to do the same,” according to the audit."
Gabbard's reply to the charge was: “Due to excess mileage of the vehicle, the clerk inquired to PVA of excessive value. Original amount was paid, even though it was $12,000 over NADA book.”
In addition, the audit found that there were problems with the way payroll was being calculated, and the way timecards were being managed. The report states:
* Employees did not sign timecards and supervisors/county clerk did not document their review/approval
* Documented overtime on time cards was not paid
* Adjustments to timecards were not properly approved by management
* Timecards did not accurately reflect time worked.
Comment
Read the entire audit report at the office of the Auditor of Public Accounts Click to go to audit report of Madison County Clerk's Office.
Specifically, the report alleges that operatives of Madison County Clerk Billy Gabbard were directed to alter public records to get around certain requirements. The report states:
"The county clerk should not alter public records in order to renew motor vehicle registrations that have delinquent taxes. During the audit auditors found the following items pertaining to the renewal of registrations:
* A customer came in to renew a motor vehicle registration, but had delinquent motor vehicle tax liens on other vehicles and would not be able to renew the registration because of the delinquencies. The customer talked to the county clerk and explained that he or she did not have the funds to pay the delinquent taxes.
* The county clerk instructed a deputy clerk to manipulate/change the social security number on this record, therefore removing the issue of delinquent taxes, because the altered social security number was no longer associated with the customer and the delinquent taxes. The customer paid the taxes on the vehicle, and the county clerk subsequently instructed the deputy clerk to change the social security number back.
* On another occasion a relative of the county clerk came in to renew his or her registration. The relative, however, had a delinquent motor vehicle tax lien on another vehicle registered under his or her social security number. In order for the relative to renew this vehicle, his or her social security number was manipulated/changed, again removing the issue of the delinquent taxes, because the altered social security number was no longer associated with this person and the tax delinquencies. The county clerk’s relative paid the taxes on the vehicle and the social security number was changed back.
The county clerk should never intentionally alter public records in order to override the controls in place, and allow someone with delinquent taxes to renew their registration, without first paying the delinquent taxes owed."
According to the report, Gabbard's reply to the charge was: “This is not a general practice, however, at the clerk’s discretion, may be deemed necessary, but must have his prior approval.”
The audit further found that Gabbard, with the help of operatives, subverted administrative controls to renew the vehicle registration on his own car:
"During the audit auditors found the county clerk used a passenger decal on his personal vehicle from July 2008 through January 2009 without renewing his registration and paying for the decal. On Jan. 6, 2009 he renewed his registration and paid.
However, even though the registration was delinquent, he had the deputy clerk waive the penalty and interest, which should have been charged on these delinquent taxes.
While the county clerk has internal controls in place to ensure all decals are accounted for and the correct fees are charged, management chose to override these controls, according to the audit.
Having the county clerk override the internal controls in place personally, creates an atmosphere in the office that the controls can be circumvented at will, and could lead to others trying to do the same,” according to the audit."
Gabbard's reply to the charge was: “Due to excess mileage of the vehicle, the clerk inquired to PVA of excessive value. Original amount was paid, even though it was $12,000 over NADA book.”
In addition, the audit found that there were problems with the way payroll was being calculated, and the way timecards were being managed. The report states:
* Employees did not sign timecards and supervisors/county clerk did not document their review/approval
* Documented overtime on time cards was not paid
* Adjustments to timecards were not properly approved by management
* Timecards did not accurately reflect time worked.
Comment
Read the entire audit report at the office of the Auditor of Public Accounts Click to go to audit report of Madison County Clerk's Office.