The Schuylkill County Clerk of Courts is under investigation after a county audit revealed about a dozen "irregularities" in accounting and internal controls.
County Controller Christy Joy completed the audit for 2012 earlier this month and turned over his findings Thursday to the district attorney and commissioners. Joy said he has been cooperating with an investigation by the auditor general, state police and the Federal Bureau of Investigation since Sept. 11, 2013.
"I think these are significant irregularities, so that's why I turned it over to the district attorney and the commissioners to determine if further actions needs to be taken," Joy said Thursday.
According to Joy's report, Clerk of Courts Stephen M. Lukach Jr. has been mismanaging bank accounts and has not kept accurate records for expenses or transferred manual records to the county automated system.
Lukach, a Rush Township Democrat, has served in the position for 27 years. He said Thursday he takes responsibility for what was in the report and will look at the recommendations made by the controller.
"We do the best we can," he said. "We may have not been able to handle everything perfectly, but we do the best we can."
The audit notes a recurring monthly charge of $185 over six months to a Wells Fargo account. Lukach said this was a vehicle payment he made by mistake, noting that the account numbers are nearly identical. Lukach said as soon as he realized the mistake, he transferred the money back to the proper accounts.
Also in the report, Lukach was asked early in the audit how many different bank accounts his office had. Lukach initially stated there were three, but the controller said he was aware of at least 16 different accounts. The audit was also unable to account for about $3,500 spent at Staples, Wal-Mart, Verizon, Chase and Best Buy and Lukach was late in depositing several checks worth $116,537.58, $55,480.91, $74,107.71, $96,510.29 and $2,590.74.
This was the first internal audit done in the clerk of courts office since 2006 when Controller Gary Hornberger presented his 2004 report.
"Why it was not done, we do not know," Lukach said. "That is up to the controller's office."
Joy said every other row office is audited each year. Joy started his term as controller in 2012 and did not know why the clerk of courts has not been audited in nearly a decade.
However, the state has continued its audits of the office. The most recent audit available online at the state auditor general's website is from 2005 to 2008. The findings in that report included "inadequate internal controls over the bank account, receipts, manual receipts" and "inadequate assessment of fines, costs, fees and surcharges." But there has never been any further investigation.
"Things need to be worked on. There's no doubt about that," Lukach said.
County District Attorney Christine A. Holman offered her assistance to the FBI and state police as they investigate the matter.
"If criminal charges are filed by any entity, my office would embark on its own investigation," Holman said.
If Lukach did commit any criminal acts, Holman said her office can file quo warranto challenging the right for him to hold office.
"This has been going on a long time," Holman said.
Schuylkill County Commissioner George F. Halcovage said the board can not comment on the situation since it involves personnel.