THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Thursday, May 16, 1996 TAG: 9605160389
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY MASON PETERS, STAFF WRITER
DATELINE: WINFALL LENGTH: Medium: 78 lines
Embarrassed officers of the Northeast Economic Development Commission had their knuckles publicly rapped by the state auditor this week for paying out nearly $4,000 in improper expense account money to some fellow commissioners.
The economic panel is made up of bankers, businessmen and community leaders selected for their financial savvy. Under state law, the pump-primers are allowed $100 a day while on official business and $28 in daily subsistence.
State Auditor Ralph Campbell Jr. said he found personal expense account irregularities in a special audit of the commission's books that came earlier this year after information was received over a confidential ``hot line'' at Campbell's office in Raleigh.
Campbell's findings were spelled out in a harsh letter distributed Wednesday at a monthly meeting of the economic commission panel in the Winfall headquarters of the Albemarle Electric Membership Corp.
``We automatically investigate any reports of irregularity in handling public money,'' said Campbell.
Most of the money involved went to Sidward M. Boyce Jr., an Elizabeth City banker who was commission treasurer last year.
``We did document that the prior treasurer received $3,200 in per diem and subsistence for 25 trips to the commission's CPA firm (in Edenton). . . . According to the prior treasurer he was delivering invoices to the CPA firm . the trips usually lasted approximately 30 minutes. The CPA firm is located approximately 30 miles from the (prior) treasurer's place of employment.
``Since the commission had not authorized the payment for activity other than official meetings, these payments were inappropriate. We recommend that the commission seek reimbursement from the prior treasurer for the $3,200 he received for trips to the CPA office.''
Boyce was not available for comment Wednesday.
Commission Chairman Jimmy Dixon, an Elizabeth City bottling executive, said all ``but a very small amount'' of the $4,000 has already been paid back.
Dixon and C.P. Timberlake III, an Edenton CPA retained by the commission, both said the expense irregularities apparently resulted when wrong dates were applied to some reimbursement claims by commission members. This in some cases allowed for double payment, they said.
Andy Allen, a Plymouth businessman and former chairman of the commission, was listed by Campbell as receiving $128 in improper expense money. Jimmy R. Jenkins, Jr., former vice-chairman of the commission and a former chancellor of Elizabeth City State University, received $336 ``for meals he was not entitled to. He was a state employee at the time and not entitled to meals unless he was on overnight travel status,'' Campbell said.
Jenkins is a biology professor at ECSU.
Campbell also noted that Charles Ward, now secretary of the Economic Development Commission, improperly received two days expenses.
``Furthermore, two (other) commission board members received travel reimbursement in February 1995 for several months of travel dating back to November and December 1993.'' Such delays are contrary to travel expense rules that require reimbursement requests be filed within 30-days after the travel is completed.
The state auditor added that in accordance with state law . . . and our standard procedure, we will be providing copies of this . . . letter to the governor, the attorney general, and the director of the State Bureau of Investigation on May 9, 1996.''
Dixon's written reply to Campbell, released at Wednesday's meeting, said Dixon had ``thoroughly reviewed'' the state auditor's letter.
``We have found that there was some misunderstanding with regard to the payments to commission members for their activities,'' wrote Dixon.
``The prior chairman, current secretary and prior vice chairman have agreed to fully reimburse the commission for the expenses outlined in your letter,'' Dixon continued.
``Regarding the prior treasurer's trips to the commission's CPA firm, we feel that these trips and the related activities were fully authorized and entitled the treasurer to the additional per diem and subsistence. . . .''
Dixon said, however, that the former treasurer ``has agreed to reimburse the amount of per diem and subsistence paid twice on the same day. . . .'' by CNB