State auditor recommends Linn accounting changes

CEDAR RAPIDS - A state audit of Linn County's accounting practices resulted in several recommended changes, most of which were adopted before the audit's completion. The dispute that led to the state audit remains.

“I believe everything had been addressed, with the exception of non-audit-related stuff, before this audit ever started,” county Finance Director Steve Tucker said. “When you get right down to it, all you have is very minor stuff.”

County Auditor Joel Miller, who requested the partial state audit of selected county practices, said the state report vindicates his earlier requests for changes.

“Nobody did anything until the state auditor was going to come in,” said Miller, whose disagreement with supervisors and department heads has also prompted a lawsuit against the county. “Is it going to take that every time to get people to do what they're supposed to do?”

Released Tuesday morning, the state auditor's report describes “instances of non-compliance” among county practices, but no illegal activity. Tucker said that's because most of the issues were also raised by Eide Bailley, the accounting firm hired by the county to perform the annual audit of its books required by state law.

“It could look like the re-audit pushed things along, but I would say we were responding to Eide Bailey's comments,” said Tucker, noting that county officials weren't told what the state's audit would cover.

“No surprises,” Sheriff Brian Gardner said of the state auditor's report. “We understood that the accounts were allowable and proper all along.”

Miller has questioned the practice by Gardner and some other department heads of maintaining independent bank accounts, funded through service fees or fines, to conduct day-to-day business. Five of the 14 accounts maintained by Gardner's office were shifted to the county treasurer's office in June, before the state audit began.

“That's been a recommendation of (Eide Bailley) the past several years,” Gardner said. “We just finally sat down with (Tucker)” to make the change.

Miller filed suit against the supervisors in February 2010 after they refused to authorize the promotion of a deputy auditor whose duties would include reviewing the independent accounts. He said he expects the case to go to trial next spring.