State Auditor Mike Harmon has released the 2014 audit of the Monroe County Sheriff’s Office when Barlow was Sheriff. State law requires the auditor to annually audit the tax account and the fee account used to operate the office. As part of the process, the auditor must comment on non-compliance with laws, regulations, contracts and grants. The auditor must also comment on material weaknesses involving the internal control over financial operations and reporting. The audit report gave Barlow a chance to answer each violation, and when answers were given, they were included in the report.
Auditors say that Barlow should have implemented controls over equipment obtained under a state grant program. Documentation indicated between August 2011 and July 2012, the former Sheriff received several vehicles including six High Mobility Multipurpose Wheeled Vehicles (HMMWVs), pick-up trucks, utility vehicles, sedans, motorcycles, generators, along with other items through a grant program. The inventory lists when Barlow left office did not match what the new Sheriff found when he took over. The missing items were found in a residence. In April of last year, Auditors met with Barlow to discuss the missing inventory. He did admit to selling his wife a 2006 Jeep Liberty, given to the Sheriff’s Office through a grant program, for $1. Other vehicles and equipment obtained through grant programs were given to various other organizations.
The Auditor’s Office says they will turn this information over to the Kentucky State Police and Federal Bureau of Investigation. Barlow said that he had a deputy in charge of the grant programs and inventory. In regard to the Jeep Liberty, Barlow says he paid $400 to have it delivered and when it arrived, it would not run, had a busted windshield and did not have a battery. After repairing the vehicle, Barlow says he was told by the county judge that no more vehicles would be licensed or insured in the county’s name. Barlow says he licensed and insured it himself. Barlow says he was under the impression he could do whatever he wanted to do with the Jeep after two years..
The audit found that Barlow did not make the required daily deposits. The audit report did not specify whether any payments were received on those non-deposit days, or how much money was left at the office. Barlow did not respond to this violation.
According to the audit, Barlow did not pay the department’s invoices within the required 30 day time period, which resulted in $23 worth of finance charges. The report says that these fees are not allowable expenses and they recommended he personally pay back the money. Auditors feel that having good internal controls could have prevented the delay in payment. Barlow’s says that the invoices weren’t paid within 30 days, because there wasn’t enough money in the bank to cover them. The Sheriff’s Office had to wait until the money was there before they could make payment.
Auditor’s noted that the former Sheriff’s office lacked adequate segregation of duties over receipts and disbursements. The bookkeeper was on leave for much of the audit period and the audit points to lack of available personnel as one reason for the violation, but says that Barlow should have provided oversight. As a result of this lack of oversight, bank reconciliations were not prepared for some months, receipts and disbursements were not accurately recorded, and inaccurate financial statements were prepared. Barlow gave no response.
When it comes to the department’s payroll, Auditors found that timesheets were not maintained, employees did not receive overtime pay, some deputies were improperly paid and in several cases incorrect information was sent to the IRS. They also found that Barlow had used his personal bank account to pay for what he considered contract labor, but those individuals were actually county employees. Barlow says the money wasn’t in the Sheriff’s Office account to cover the payroll. He says that he, along with a dispatcher, at times would hold their checks for up to two weeks, ensuring the other payroll checks cleared the bank. Barlow says that from 2011-2014 he spent over $47,000 of his own money to ensure that when citizens called for help it was there and he never asked to be reimbursed.
The exact status of the KSP and FBI investigation is not known and whether criminal charges will be filed is yet to be seen. You can find the full report on the State Auditor’s website.
Story courtesy of wcluradio.com