Another audit has resulted in a police investigation of a governmental office in Schuylkill County.
State police are investigating the Schuylkill County Conservation District after a 2012 audit of the county agency revealed three "irregularities" in accounting and internal controls.
"They show some significant things going on over there," County Controller Christy Joy said Thursday.
According to the audit from the Z&A accounting firm, none of the expenditures tested had the district manager's signature for approval, as required. As a result, funds may have been misappropriated. The amount in question is "undeterminable."
The report also said the agency did not properly segregate financial duties or record all its transactions.
"The Conservation District's books and records did not materially roll forward for 2012," Joy said in a prepared statement Thursday. "I suggested to administration the need for a full external audit or at the very least an internal audit by the county controller. Z&A was then hired to perform the external audit. Z&A's audit report was not furnished to the controller's office until June 5, 2014, despite multiple formal requests in 2013. The Conservation District's audit report contained substantive findings. If these findings were addressed by management, this alleged embezzlement would have been prevented."
The Conservation District said in the audit that it will implement procedures to improve its record keeping and enforce approval on expenditures but can not afford to hire more employees to further segregate duties. The District is currently being audited for the 2013 fiscal year.
In March, similar findings in an audit led to a police investigation into Clerk of Courts Stephen M. Lukach Jr., who has held the position for 27 years. Lukach resigned a month later amid allegations he had used thousands of dollars in public money for personal purchases. Charges have yet to be filed against Lukach.
First Assistant District Attorney Maria T. Casey said the office cannot comment on the latest allegations against the Schuylkill County Conservation District or confirm police involvement. Joy said the investigation has been turned over to state police, but it has not yet reached the district attorney's office.