Tuesday 15 May 2012

State audit raises embezzlement figure, exposes poor bookkeeping

 

State audit raises embezzlement figure, exposes poor bookkeeping

A former probation secretary allegedly embezzled a much larger sum from Cowlitz County than initially reported - $62,000 over five years, according to a state audit. Her criminal trial is schedule for June 18. She is free pending trial. The state report also states that Rehaume, while on administrative leave after problems were noticed in early 2011, tried to return $50,000 by depositing the money back in county accounts.

That said, Swanson said it also is possible that some of the $730,000 figure was taken.

"There's just no way of really telling.

Swanson's office is involved because it oversees county accounting and records, including those of the county's probation department, which she does not supervise directly.

Rehaume, who worked for the county for about twenty-five years, faces criminal charges of theft and misappropriation of public funds for allegedly pocketing fees paid by probationers in misdemeanor cases. She noted in her 14 years as auditor this was the largest such case she's seen.

County Auditor Kris Swanson said she does not believe $730,000 was taken from the county, noting that budget adjustments are a regular part of the probation office bookkeeping.

Rehaume is the wife of now-retired Longview police Sgt. The sheriff's office seized the returned money as part of the criminal investigation. They noted that "adjustments can be used to conceal a theft," but only recommend the county try to recoup the documented $62,000 in alleged thefts.

The county took several steps to beef up its bookkeeping after the problem was discovered, including creating separate accounts and confidential computer access for employees and restricting who can produce account adjustments.

State auditors note the number of annual adjustments dropped after accused employee Maryann Rehaume resigned, but the amounts had been decreasing for several years.

The state report researched the alleged embezzlement and identifies what accounting and rule changes can be achieved to avoid future problems.

Criminal complaints filed in December listed about $9,000 taken in several counts of second-degree theft, for example, but the auditor's report alleges Rehaume took at least $62,150 between 2005 and 2011.

Probation Services collects about $500,000 a year from offenders, mostly in cash. They didn't have the accurate or appropriate documentation to back it up.

.

State audit raises embezzlement figure, exposes poor bookkeeping



Trade News selected by Local Linkup on 15/05/2012