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Auditor General outlines county treasurer procedural reviews; committee funds the effort

Arizona House Appropriations Committee · February 11, 2026

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Summary

Auditor General Lindsey Perry described a new program of procedural reviews of county treasurers following a major embezzlement; the Appropriations Committee advanced related appropriations and a separate bill (HB2352) to fund future reviews.

Auditor General Lindsey Perry told the Appropriations Committee on Feb. 11 that her office has new statutory authority to conduct procedural reviews of county treasurers following a $38.7 million embezzlement in Santa Cruz County. Perry said the office was appropriated $5.3 million to stand up the function for the first three fiscal years and plans a four-year ramp-up to review all 15 county treasurers.

Perry recounted the former Santa Cruz County Treasurer Elizabeth Gutfar's scheme, citing court documents and noting roughly 187 wire transfers and falsified records that enabled the embezzlement. Perry said her office plans to hire specialized staff (including a manager recruited from a federal OIG) and perform operational testing in areas such as wire transfers, reconciliation, system access and segregation of duties.

Following the presentation, the committee considered HB2352, which would appropriate $2,385,900 from the general fund to the Auditor General for county treasurer reviews in fiscal year 2029 and intends the funding to be ongoing. Members debated funding timing and budget mechanics; the committee returned the bill with a do-pass recommendation (11 yes, 7 no).

Ending: The committee's action advances funding for the Auditor General's procedural review function; staff said the office is on track to complete three county reviews this fiscal year (Pima, Gila and Apache counties).