Chase County authorizes forensic audit after auditor flags irregularities in treasurer�s records

Chase County commissioners on Aug. 29 approved a forensic audit and granted bank-record access to the sheriff after the countys annual auditor reported unexplained irregularities in the treasurers records.

Cindy Johnson, the outside auditor conducting the countys annual audit, told commissioners she had found numerous inconsistencies while reviewing records and was unable to identify a lawful reason for them. Commission discussion described potential discrepancies in the range of $50,000 to $100,000 that warranted a more detailed review.

Sheriff Jacob Welsh told the commission he had consulted with state agencies and recommended hiring a certified public accountant with a certified fraud examiner credential to conduct an agreed-upon-procedures forensic audit. "I would be requesting that the Chase County Commission authorize me to set up said audit," Welsh said during the meeting. He asked the commission to authorize access to county bank accounts covering 2022 to the present so the investigation could proceed.

Commissioners voted to fund the audit from the general fund, approving an initial authorization of up to $25,000 for the forensic review. The sheriff also received formal authorization to access Citizens State Bank account records from 2022 onward, or to designate a designee for that access. The sheriff and the commission said the matter is being treated as an ongoing investigation; they asked that inquiries be directed to the sheriffs office.

The sheriff and chair emphasized that the audit and any subsequent work will proceed under the presumption of innocence for any individual, and that, because of the potential criminal implications, details will be limited while the investigation is active.

Commissioners said they expect the forensic audit to identify the scope and, if needed, support a referral for criminal prosecution; the countys current special prosecutor fund was noted as barely sufficient and likely to require additional resources if prosecution is necessary. The commission moved and approved the initial funding and the bank-access authorization at the meeting.

Looking ahead, commissioners said they will return to the board if additional funds are needed to complete the audit.