External Auditors Cite Neglect, Collusion, and Management Overrides as Possible Culprits in the Wake County Register of Deeds Scandal | Triangulator | Indy Week
Pin It

External Auditors Cite Neglect, Collusion, and Management Overrides as Possible Culprits in the Wake County Register of Deeds Scandal 

External auditors hired by Wake County say that overrides or neglect by management could have been at fault as $2.3 million went missing from the Register of Deeds office between June 1, 2008, and March 31, 2017.

The firm Elliott Davis Decosimo said in a report released Friday that it is Wake County's responsibility to maintain internal controls over cash and other revenue taken in by the Register of Deeds office. The missing money has been the subject of a State Bureau of Investigation criminal probe announced in March by county manager Jim Hartmann and District Attorney Lorrin Freeman. 

Generally speaking, the auditors say, collusion or management flaws can lead to problems, including fraud.

"Because of the inherent limitations in any internal control system, including collusion, management override of the control system, or neglect to follow established policies could result in errors, irregularities, or fraud occurring without being detected," the auditors found.

As an elected official, former Wake County Register of Deeds Laura Riddick, by tradition rather than law, had more control over her office then heads of other county departments. (Riddick retired in March, within a few days of the announcement of the SBI investigation, after more than twenty years in the office, citing poor health.) The law grants greater control to North Carolina sheriffs, but the situation regarding registers of deeds in North Carolina is less clear. 

In a 266-page insurance claim issued earlier last week, director of internal audit John Stephenson said his department checked practices at several other Wake County departments during the period when cash was disappearing from the Register of Deeds office.

"Beginning in December of 2014, Internal Audit performed a series of ten cash receipt reviews across the county, although none within the Register of Deeds office," Stephenson wrote. 

Comments

Showing 1-1 of 1

Add a comment

 
Subscribe to this thread:
Showing 1-1 of 1

Add a comment

INDY Week publishes all kinds of comments, but we don't publish everything.

  • Comments that are not contributing to the conversation will be removed.
  • Comments that include ad hominem attacks will also be removed.
  • Please do not copy and paste the full text of a press release.

Permitted HTML:
  • To create paragraphs in your comment, type <p> at the start of a paragraph and </p> at the end of each paragraph.
  • To create bold text, type <b>bolded text</b> (please note the closing tag, </b>).
  • To create italicized text, type <i>italicized text</i> (please note the closing tag, </i>).
  • Proper web addresses will automatically become links.

Latest in Triangulator



Twitter Activity

Comments

This is a very interesting logo! Well done! This logo is made on the site
https://www.logaster.com/logo/ ? …

by Ben Milloy on What’s the First Thing You Think of When You See Raleigh’s New Logo? (Triangulator)

You interviewed and photographed eight people about the new Raleigh logo, and only 2 of them are Raleigh residents? That …

by frgyandres on What’s the First Thing You Think of When You See Raleigh’s New Logo? (Triangulator)

Most Recent Comments

This is a very interesting logo! Well done! This logo is made on the site
https://www.logaster.com/logo/ ? …

by Ben Milloy on What’s the First Thing You Think of When You See Raleigh’s New Logo? (Triangulator)

You interviewed and photographed eight people about the new Raleigh logo, and only 2 of them are Raleigh residents? That …

by frgyandres on What’s the First Thing You Think of When You See Raleigh’s New Logo? (Triangulator)

Looks like "weed". Will we be the next Colorado?

by Bud Light on What’s the First Thing You Think of When You See Raleigh’s New Logo? (Triangulator)

I am trying to get answers to. About my brother death in Durham county jail am just read all this …

by Tenisa Ruffin on Durham County Jail Provider Correct Care Solutions Faces Scrutiny (Triangulator)

This might have been a close call amid Wake's many needs, but Commissioners Calabria, Burns, Portman, and Hutchinson surely made …

by Leanne Sigmon on Over Their Own Staff’s Objection, Wake Commissioners Move Forward With a $23 Million Park (Triangulator)

© 2017 Indy Week • 320 E. Chapel Hill St., Suite 200, Durham, NC 27701 • phone 919-286-1972 • fax 919-286-4274
RSS Feeds | Powered by Foundation