Serving Whitman County since 1877
Serving Whitman County since 1877
COLFAX - Three checks for the Palouse Empire Fair royalty scholarship were cashed in May 2017 and the $1,350 vanished.
“Those checks were cashed, but the funds were not deposited into the county’s bank account. The vendors provided copies of the cancelled checks, which did not provide enough information to identify either the bank or bank account that ultimately received the funds,” wrote state auditor Pat McCarthy in an Oct. 15 fraud investigation report.
In October 2017, five months after the checks were cashed, all three county employees responsible for daily operations “left the county’s employment for various reasons,” according to audit records.
The missing money was labeled “misappropriated” and the people responsible couldn’t be determined, according to the state.
Neither the state nor the county reported the matter to the Whitman County Sheriff’s Office to be investigated as theft, said Sheriff Brett Myers.
The incoming employees noticed numerous areas they were concerned with and notified county officials, who contacted the state. They began a review from 2015 to 2017.
The methods of tracking money at the fair and fairgrounds were lacking in providing accurate records for cash receipting, payroll disbursements, employee travel reimbursements, credit card purchases by management, and fairground small and attractive assets.
“We could not determine if further misappropriation or questionable activity occurred,” wrote McCarthy.
The state audit for 2017 showed “excessive financial mismanagement.” The state found records lacking for about $15,000 in camping revenue, 4% of fair tickets sales and pre-fair carnival ticket sales money wasn’t deposited with the county treasurer.
Former fair Director Bob Reynolds was one of the three employees that left toward the end of 2017. He retired.
Bill Stevenson is the former editor of the Whitman County Gazette, Colfax Daily Bulletin and Franklin Connection. He has nearly 30 years of journalism experience covering news in Eastern Washington.
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