Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, April 2, 1995 TAG: 9504030087
SECTION: VIRGINIA PAGE: C-7 EDITION: METRO
SOURCE: Associated Press
DATELINE: KING WILLIAM LENGTH: Medium
The lawsuit, filed Wednesday, also seeks $17,595 that the county paid for an audit of the treasurer's accounts. And, the suit says, Fornash knowingly failed to perform her duties, so the county should be entitled to double damages - $93,734 - plus legal fees.
Fornash has said she is innocent of any wrongdoing. She blamed some problems on posting errors and the small size of her staff.
Her second four-year term ends this year.
A routine county audit for fiscal 1992-93 found numerous deficiencies in the treasurer's office. Among the problems was an unaccounted-for $26,000. The county was required by law to report the discrepancy to the state auditor and state police.
A state police spokeswoman said last week that an investigation should be finished in about two weeks.
A special state audit examined the operations of Fornash's office from July 1, 1992, through Jan. 30 of this year. A Feb. 9 report of that audit said Fornash ``places the county's assets ... at serious risk because of deficient accounting practices and the lack of internal controls.''
It found, among other things:
The office's ``cash receipting practices were so deficient we could not determine whether the treasurer properly receipted and deposited all collections.''
The office ``does not deposit all cash and checks collected.'' A sum of $2,482 in cash and checks, received between September 1989 and January 1994, was still in the treasurer's vault Jan. 30.
There were discrepancies in amounts of money received and posted, and ``the treasurer has been unable to provide adequate explanations.''
``On the day of our surprise follow-up,'' state auditors said, ``a count of the undeposited cash and checks found that cash on hand was $160 short. The treasurer found the $160 two days later in a desk drawer.''
by CNB