A performance audit of the King William County, Virginia, Treasurer’s Office casts light on a number of issues that go against accounting standards, the Daily Press reports. The audit highlights 21 problem areas, including $2 million in uncollected real estate taxes from 400 properties over 30 years.
The report also alleges that the Treasurer’s Office holds about ten open accounts at four different banks, administered almost exclusively through the Treasurer’s personal cell phone. Treasury employees have access to handle taxpayer accounts without supervision. All employees, the report states, can void transactions, remove penalties and interest from accounts, cash checks meant to be cashed by the Treasurer, and access the safe. Theoretically, employees could accept tax payments in cash, then void the transaction in the system and pocket the cash, the Daily Press explains.
“I’m not saying this is happening at all, but, in my career, I have found that people who commit fraud and embezzlement are good people in a bad situation,” County Administrator Bobbie Tassinari says. “The process has gaps in it that allow for it. Whereas, if we did what we are supposed to do, they would not have been tempted to do it.”
The county investigation began in June, prompted by citizens raising concerns about unpaid taxes. This is the first performance audit the Treasurer’s Office has ever undergone. Tassinari delivered the preliminary audit report in August to the county’s Board of Supervisors. 
Elizabeth Mullen is an editorial consultant for Internal Audit 360°.