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Resident questions cash handling and embezzlement recovery; treasurer outlines fees, transition to PNC and lockbox plans
Summary
A resident raised concerns about a reported $38 million embezzlement and lengthy check deposit delays. The county treasurer explained current merchant fees, described plans to transition banking services to PNC in May, and said staff is evaluating lockbox processing to speed check handling.
A resident raised concerns about county cash handling and the status of a large embezzlement recovery during the April 15 Santa Cruz County Board of Supervisors meeting; the county treasurer responded with details about payment-processing timelines, merchant fees and an upcoming bank transition.
"I have questions and comments about the, treasurer in belt embezzlement of $38,000,000," said Ursula Conway of Rio Rico during the public comment period. She said her property tax checks had remained in the treasurer's office "for 25 days and 43 days," which she told the board represented a control weakness.
The treasurer explained the office's responsibilities and described current payment-processing practices. The treasurer noted that changes to a property address are the assessor's function, not the treasurer's, and then addressed payment fees and deposit timing: "It's a $2.95 fee for a debit card, dollars 2.5 if they'd be using e check, and 2.5% of the total if they use a credit card," the treasurer said. The office is reviewing fees with the vendor Point and Pay and will shop for alternatives if savings or improved service are available.
On check processing, the treasurer said mailed checks and seasonally high volumes drive delays. The office receives a large number of mailed checks and card/e-check payments during tax season and currently processes items by postmark date. The treasurer said the office is pursuing two operational changes: (1) transition of warrant and deposit processing from JPMorgan to PNC Bank, with testing of last checks and an intended May transfer for warrants and deposits in May–June; and (2) consideration of a lockbox arrangement in which mailed checks go directly to a bank for faster processing.
The treasurer said a formal monthly treasurer's report was not available at the meeting but would be delivered by the end of the next day. The treasurer also emphasized staffing limitations and that multi-week processing time during tax season is not uncommon in comparable offices.
No formal board action was taken at the meeting on the embezzlement question; the chair told the speaker that items not on the agenda could be followed up outside the meeting.
