In 2019, about $10,000 went missing from the Leavenworth County Treasurer’s Office. Then-Treasurer Janice Van Parys determined it was taken from voided transactions for motor vehicle registrations. In December 2019, she contacted the county sheriff’s office, which launched an investigation, but the person or persons responsible were never determined.
An audit requested by the Treasurer in January 2020 reported its findings in September 2021:
Based on the documents and information reviewed, and interviews conducted by the Firm during the examination, it appears that an individual or individuals misappropriated approximately $10,000 from the Motor Vehicle Department during 2019. During the fraud examination, the Firm analyzed financial documents and conducted interviews to validate management’s suspicions. Following is a summary of the evidence and information supporting the fraud examination team’s findings: This report reflects that an individual or individuals within the Motor Vehicle Department illicitly obtained an estimated $10,000 from Leavenworth County.
Impact to Leavenworth County:
Over the course of 2019, an individual or individuals misappropriated an estimated $10,000 from the County.
Additional amounts may have been misappropriated but not detected.
A more detailed forensic audit was discussed at the time in an effort to determine who was responsible for the theft. But current County Treasurer Caleb Gordon, in office since January of this year, says audit costs were prohibitive, and there was a disagreement about which office would pay for the probe.
Now, with the statute of limitations (5 years) on felony theft ($1,000-25,000) in Kansas appearing to be running out, Gordon describes where the investigation was and its status now:
“Sink Gordon and Associates was the firm hired by Mrs.Van Parys to conduct an audit. As near as I can tell, they only audited motor vehicle voids, which was how the money was supposedly stolen.
“Sheriff Andy Dedeke wanted to hire Scot Loyd, arguably one of the most accomplished accountants in the state, to do a full AUP (Agreed Upon Procedures). This would have been a very in-depth look of the treasurer’s office. Mr Loyd wrote up an agreement that included a cost ranging from $50,000 to $72,000. It boiled down to the sheriff didn’t want to pay for it and asked the board of county commissioners to. The board didn’t want to pay for it, so the entire thing basically got swept under the rug. There were never any indictments; no one was ever charged.
“(After I contacted Loyd earlier this year) He initially agreed to honor the price from four years ago to move forward with the AUP. He drove all the way here from western Kansas to go to the commissioner’s meeting with me on April 24th of this year, as I asked for them to provide funding. They declined and said that I needed to pay for it out of my own budget.
“Currently, I am receiving consultation from Mr. Loyd at no cost. We have agreed to look at a contract that would cap at $25,000 to begin looking at the books and see what we can find. It’s a starting place. Due to scheduling, it may not begin until late summer or fall. The statute of limitations is 5 years, so we are right against that. It is unfortunate that the board of commissioners doesn’t think any of this is worth pursuing. You would think if an elected official asked for their office to be audited that it would happen. It is actually not uncommon for this type of thing when a new county treasurer takes office, according to Mr. Loyd.”
The Sentinel reached out to Leavenworth County Commission Chair Jeff Culbertson for comment on the issues surrounding the proposed forensic audit. He did not respond.
