By James Beaty
Senior Editor
McALESTER —
A special audit performed by the State Auditor and Inspector’s Office is critical of the results of an action taken by Pittsburg County commissioners in 2006 which resulted in pay for elected county official’s travel expenses being converted into salaries.
That started a series of actions which may have resulted in a number of law violations — although the state auditor’s office has stated a prosecutor will have to make that determination.
The audit, signed by State Auditor & Inspector Steve Burrage, covers a period from June 26 through Sept. 29, 2008. It includes every county office in Pittsburg County.
Purpose of the audit was to “Review officials’ salary increase for travel allowance and determine if it was proper.”
The State Auditor and Inspector’s Office has sent a copy of the audit to District 18 District Attorney Jim Bob Miller. A letter from Burrage accompanying the report states that his office performed the audit at the request of the district attorney.
In the report, Burrage notes that the Pittsburg County commissioners are the chief administrative body for the county.
The matter dates back to 2006, when on June 26, the board of county commissioners approved a “Resolution to Combine Elected Officials Travel with Salaries.’”
Commissioners in office at that time approved the resolution “to combine mileage with salaries for all elected officials,” the audit states. All the county-elected officials in office on that date signed the resolution, the audit reports.
After the resolution passed on June 26, 2006, the officials’ travel allowance continued to be included with their salaries until Sept. 29, 2008. At that time, the board of commissioners rescinded June 26, 2006 resolution which had combined travel pay with salaries in the first place.
Problems with the 2006 measure, according to allegations in the audit, include:
• Some county officials received more than the law allowed as “travel pay.”
• Increased travel pay — which amounted to a raise — went into effect mid-term for some officials, which is also prohibited by law, the auditor’s office contends.
• Some county officials received “travel pay” while also allegedly driving a county vehicle, at least part of the time.
• The travel allowance used to increase salaries resulted in the Pittsburg County making increased employer contributions for retirement and workers compensation on behalf of county officials.
The 2006 resolution states that the Board of County Commissioners and all other elected county officials of Pittsburg County “agree to transfer travel allowance based on Oklahoma State Statue ... to their salary account.”
“Travel allowance for some officers was increased in order that all salaries would be in the same amount,” the resolution states.
Those signing off on the June 26, 2006, resolution and their offices at the time were:
• Pittsburg County Commission Chairman and District 2 Commissioner Kevin Smith.
• District 1 Commissioner Gene Rogers.
• Then-District 3 Commissioner Randy Crone.
• County Assessor Jim Kelley.
• County Clerk Debbie Burch.
• County Treasurer Cerita Morley.
• Then-Court Clerk Renae Moody.
• Then-County Sheriff Jerome “Snookie” Amaranto.
The state auditor’s report makes a point of stating that the current court clerk (Cindy Eller) took office subsequent to the resolution of June 26, 2006, being signed and did not sign the resolution.”
“At the time she took office, the salaries had been established for the officers,” the state auditor’s report states.
Also, District Three Commissioner Donald Mathis is included in part of the report. He took office after the resolution had been signed by then-District Three Commissioner Crone.
The report states that all of the county officers’ monthly travel pay which had been converted into salaries were increased to $600 a month effective July 1, 2006.
While the $600 per month salary increase for the county commissioners did not exceed the travel allowance allowed by law, salaries of other officers were increased in excess of what state law allows, according to the report.
For example, from June 26 through Oct., 31, 2006, the following amounts of monthly travel pay had been allowed for other county offices:
• County assessor — $400.
• County clerk — $300.
• County treasurer — $300.
• Court clerk — $300.
From Nov. 1, 2006, through Sept. 29, 2008, the amounts allowed for commissioners remained at $600. However, the amount allowed for the county assessor rose to $500, with $400 being allowed for the county clerk, county treasurer and court clerk’s offices — higher, but still not reaching the $600 in travel allowance those officials were being paid.
The annual salaries for the Pittsburg County officials were $51,633 in 2007 and $54,633 in both 2008 and 2009, according to the report.
Those amounts were below the maximum allowed by the state, the Auditor’s office states in the report.
“However, it appears the elected officials voted on and/or received raises during their terms of elected office,” contrary both to state law and the Oklahoma Constitution, according to the audit.
The auditor’s office has recommended the district attorney “Review this finding to determine what action, if any, may be required.”
Another section of the audit deals with driving a county-owned vehicle while also receiving the $600 monthly travel pay.
Part of the report deals with District One Commissioner Rogers and with District Two Commissioner Smith.
“During a discussion with the current District One and District Two county commissioners, they state that they did drive a county-owned vehicle part of the time and their personal vehicle for the rest of the time for the period June 26, 2006, through Sept. 26, 2006,” the audit states.
The District 3 Commissioner, Donald Mathis, stated he drove his personal vehicle and did not drive a county-owned vehicle, the audit stated. Mathis took office on Sept. 22, 2008, according to the audit.
In addition, the report states that the “former District 3 commissioner,” who would be Crone, “stated he drove a county vehicle part of the time and his personal vehicle the rest of the time,” the audit states.
The audit also refers to discussions with the sheriff, who would have been then-Pittsburg County Sheriff Amaranto during the time period covered in the audit. Current Sheriff Joel Kerns did not take office until January, 2009.
“During a discussion with the Sheriff (Amaranto), he stated that he drove a county-owned vehicle part of the time and his personal vehicle the rest of the time during the period in question. He also stated that he used his personal boat and an all-terrain-vehicle for county business,” the auditor’s report states.
The Oklahoma State Auditor and Inspector’s office requested that all of the county officers provide a statement on an OSAI affidavit form “to confirm if they did or did not drive a county-owned vehicle from June 26, 2006, through Sept. 28, 2009,” the report states.
According to the report, those signing an affidavit stating they had not driven a county-owned vehicle during this period were the current District 3 commissioner (Mathis), county assessor (Kelley), county treasurer (Morely), county clerk (Burch) and court clerk (Eller).
Rogers and Smith, indicated in the report as the District One and Two commissioners “originally stated they would complete the affidavits and return them to the auditor,” the report states.
“However, the affidavits were not received and OSAI contacted the county commissioners’ office to determine if the commissioners had completed the affidavits,” the report states.
“The commissioner’s secretary informed the auditor that the commissioners were not going to prepare and sign the affidavits. Also the sheriff denied the request to complete and affidavit stating that he was not going to sign anything until he talked to his attorney,” the report continues.
However, the report went on to state that an OSAI auditor, while performing a previous audit at the county barns had “observed District One (Rogers) and District Two (Smith) commissioners and former District 3 Commissioner (Crone) driving county-owned vehicles.”
The report alleges that the officials had received a travel allowance in their salaries dating from June 26, 2006, through Sept. 29, 2008, “while driving a county-owned vehicle:
• Commissioner District One (Rogers) $16,200.
• Commissioner District Two (Smith) $16,200.
• Former Commissioner District Three (Crone) $13,200.
• Sheriff (Amaranto) $16,200.
The report also states that questionnaires dated Jan. 8, 2008, had been signed by the four individuals asking “Do you drive a county-owned vehicle” and the signed answer had been “yes.”
“Based on the documentation and interviews, it appears District One and Two commissioners, former District Three commissioner and the sheriff drove a county-owned vehicle and received a travel allowance” contrary to an Oklahoma attorney general’s opinion, the report concludes.
The attorney general’s opinion cited in the report states that “a county sheriff or county commissioner who is receiving a monthly travel allowance may use a county-owned vehicle” only under specific circumstances outlined in state law.
“To find otherwise would result in double recovery of travel expenses because the travel allowance is for reimbursement of all business-related travel within the county during a given month and the use of a county vehicle in the same month would give the official overlapping travel allowances — a situation the statute is designed to prevent,” the auditor’s report states.
The report goes on to state that any public officer of county, city, town, or member of the legislature who directly or indirectly receives any interest, profit, or perquisites arising from the use or loan of public funds” could upon conviction, “be deemed guilty of a felony and shall be punished by a fine” not to exceed $500 and from one to 20 years in prison.
Also, the state auditor’s report states that any county officer or person charged with the collection, receipt, safekeeping, transfer or disbursement of public money... who shall covert to the officer’s own use or to the use of any other person... could be guilty of embezzlement.
The report goes on to state that the auditor’s office recommends the district attorney review then finding to determine what action, if any, may be required.
Another finding states that when the county officials salaries were increased by travel allowance employer contributions were paid by Pittsburg County to Medicare, the Oklahoma Public Employees Retirement System and Social Security on the increased amount,
In addition, workers compensation insurance was paid on the travel amounts, according to the report.
The report includes the following table showing total employer contributions paid on the county officials’ travel allowances, from June 26, 2006, through Sept. 29, 2008.
• District One Commissioner (Rogers) — $3,867,46.
• District Two Commissioner (Smith) — $3,900.43.
• District Three Commissioner (Mathis) — $54.77
• Former District Three Commissioner (Crone) — $3,223.19.
• County Clerk (Burch) — $2,553.50.
• County Treasurer (Morely) — $2,541.90.
• County Assessor (Kelley) — $3,336.95.
• Sheriff (former Sheriff Amaranto — $3,985.99.
• Court Clerk (Eller) — $2,440,25.
The state auditor’s report made a point of stating that both Eller and District Three Commissioner Mathis took office after the resolution converting travel allowance to salary had already been passed and included in the officials’ salaries.
Employers are required to withhold Social Security and Medicare tax on non-accountable plans, such as monthly travel allowance, the auditor’s report states.
However, the state auditor found no authority for the county to pay contributions to the retirement fund of workers compensation insurance on the monthly travel allowance.
Once again, the auditor’s office recommended that the district attorney review the finding to determine what action, if any, may be required.
The report also includes a disclaimer stating that the state auditor’s office has no jurisdiction or authority “to determine the guilt, innocence, culpability or liability if any” in the matter.
Also the report states that citing specific statues or other matters does not, and is not intended to, “constitute a determination or finding by the State Auditor and Inspector that the Pittsburg County Board of Commissioners, or any of the individuals named in this report or acting on behalf of the Board of Commissioners have violated any statutory requirements or prohibitions imposed by law.”
A section of the report outlines the fiduciary responsibility of the county commissioners where taxpayer money and public funds are involved.
“The Board of County Commissioners for Pittsburg County has an obligation to act in the best interest of the county as a whole. This fiduciary responsibility requires that all funds belonging to the county be handled with scrupulous good faith and candor.”
“Such a relationship requires that no individual shall take personal advantage of the trust placed in him or her,” the report states.
“When the Board of County Commissioners accepts responsibility to act in a fiduciary relationship, the law forbids them from acting in any manner adverse or contrary to the interest of the county.”
Contact James Beaty at jbeaty@mcalesternews.com.
