SANTA CRUZ COUNTY, Ariz. — Santa Cruz County officials are not pleased the auditor general released a report suggesting that they failed to detect an alleged decade-long case of embezzlement in the treasurer's office.
Earlier this week, the auditor general published a report into the alleged theft of $39 million taken out of Santa Cruz County's coffers. The scandal has resulted in the county treasurer resigning, the county filing a lawsuit, and a state lawmaker threatening to introduce legislation to thwart similar types of fraud.
Now the county is trying to point some of the blame toward the auditor general, accusing the government agency of failing to use "basic accounting audit principles" to oversee the county treasurer's office.
In a statement on Wednesday, county officials said they had filed a notice of claim to the auditor general last week accusing the agency of being culpable in not catching the treasurer's alleged "misdeeds."
"The County intends to pursue its notice of claim against the Auditor General through the court system and let a jury determine the extent of the Auditor General’s responsibility for failing in its duties to the citizens of Santa Cruz County," the county's statement reads.
Arizona law obligates the auditor general to conduct regular financial audits on the state's counties. In the report released this week, the auditor general's office claims the county's former treasurer used elaborate methods to "conceal" her actions from them.
The auditor's report further claimed that the county's board of supervisors failed to review irregular and falsified financial reports.
"Had anyone from the County reviewed these monthly Cash Reconciliation reports, they may have noticed irregularities and discovered the Treasurer’s actions," the audit report states.
But the county argues that the auditor general's report is an attempt to "minimize its liability" for not detecting the alleged embezzlement themselves. The county is demanding for the "misleading" audit report to be retracted.
