State audit finds more on Monroe County bookkeeping issues

BLOOMINGTON, Ind. (AP) - An audit by the Indiana State Board of Accounts has revealed more details about bookkeeping problems at the Monroe County treasurer's office.

The Herald Times (http://bit.ly/1FZ8Cuf ) reports the audit found the treasurer's books didn't line up for almost seven months in 2013, daily bank account updates weren't being kept for four months, and bank statement balances weren't reconciled. The audit also found the treasurer's office needed more than $194,000 to "force balance" the accounts in December 2013.

County Treasurer Cathy Smith and an accountant hired by the county say no funds are missing.

"I know it's going to be hard for the public to understand - they say, 'Where's the money?'" Smith said. "The money's there; everything in the bank is right."

She said the money the audit said was misplaced was likely tied to mistakes related to the public employee retirement fund, with data often being entered by hand due to problems between accounting software in the treasurer's and auditor's offices.

Smith said the biggest reason for the bookkeeping problems was that the office was understaffed. The treasurer's office lost an employee in May 2013 and the position was not filled. Smith had also asked the council to approve hiring a certified public accountant, but her request was not voted on.

The county board of commissioners approved hiring a government accounting consulting firm to look at the treasurer's cashbooks and bank statements from Jan. 1, 2012, to Jan. 1, 2015.

Monroe County Council President Cheryl Munson said it will likely take another look at staffing at the treasurer's office once the accountant has a final report.

"It would be premature, I think, to do anything before we have the report," she said.

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Information from: The Herald Times, http://www.heraldtimesonline.com