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Neosho County appoints and swears in new treasurer as auditors flag bank reconciliation weaknesses
Summary
Commissioners accepted Gabby Sands as county treasurer and swore her in while auditors reported a material weakness in monthly bank reconciliations and flagged budget/cash violations; commissioners approved signature‑card updates and directed follow‑up work to reconcile accounts and post audit adjustments.
Neosho County commissioners on Dec. 17 accepted the appointment of Gabby Sands as county treasurer and publicly swore her into office as staff and auditors outlined problems with the county’s bank reconciliations and multiple bank accounts.
The panel voted to add Sands, the newly appointed treasurer, and to update signature cards on multiple county bank accounts to remove former employees and add Sands, Keeley Dodge (deputy treasurer) and Heather Ellsworth (county clerk). Commissioners said they discovered a larger set of accounts than previously understood and directed staff to restore limited access immediately for payroll and accounts‑payable while a deeper reconciliation continues.
During a separate presentation, representatives from the county’s auditors (James Ford & Associates) described adjustments and journal entries made during the 2023 audit and identified a material weakness in the monthly bank reconciliation process. The auditor said the county had numerous “items not in bank” and pages of outstanding checks that were not reconciled, creating a structural problem even if the net dollar amounts were small. The audit also identified statute/budget issues, including an end‑of‑year negative unencumbered cash balance in the general fund and budget overruns in the health and road & bridge funds.
Commissioners and staff agreed to work with the auditor and the county’s software vendor to correct bank reconciliations, post the adjusting entries recommended by auditors and to verify the cash position for year‑end reporting. The board also authorized signature‑card changes requiring two signatories from different departments and at least one live signature for certain accounts.
Sands, speaking after the oath, acknowledged the steep learning curve and thanked staff for assistance. The board also discussed and signaled intent to solicit proposals for a forensic audit/RFP to review historical financial operations across key offices; no vendor was chosen at the meeting.
The commission asked staff to provide a follow‑up plan for (1) finalizing bank reconciliations and posted audit entries, (2) documenting account ownership and funding sources for bond and escrow accounts, and (3) returning to the commission with status updates on wiring/transfer steps required to satisfy bond payments and payroll access.
