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Mecklenburg County Manager Harry Jones on Friday said he has suspended the county's internal audit director and will find a permanent replacement in hopes of improving the credibility of county government.
Cornita Spears this week admitted an error in an audit report of how more than $162,000 in donations were spent through a charity meant to buy gifts for needy children. County officials had ordered the audit after allegations of possible misspending.
Spears still works for the county but is on non-disciplinary suspension with pay, Jones said. Spears could not be reached for comment.
Former county Finance Director Harry Weatherly will oversee the audit department as a consultant for up to 90 days. He'll get $80 an hour, the same fee he has received for other work with the county, Jones said.
Chris Waddell, another auditor in the department, will lead day-to-day operations.
Meanwhile, the county's human resources department has been asked to recruit a new department director. Spears would not be considered for the position, Jones said.
Jones first announced the changes in a memo to county commissioners and some staff. He told the Observer he hopes the moves will improve the department's credibility among county management, commissioners and the public.
The county has faced months of scrutiny and criticism from the public following an investigation into the Giving Tree charity, and fiscal practices across the Department of Social Services.
Some commissioners supported the move to replace Spears, but said it doesn't resolve other questions raised in past months.
"I think it's a needed step, but I don't think it's the final solution," said commissioner Neil Cooksey, who recently suggested the county appoint an ethics officer.
The changes come days after Spears issued a revised report about spending within the Giving Tree charity, which was run by DSS. She told commissioners Tuesday that an employee returned more than $33,000 to the county earlier this year, but the money hadn't been properly accounted for until last week.
The county hasn't said publicly who returned the money, just that it was an employee who worked with the Giving Tree for about 10 years.
The Giving Tree program spent more than $162,000 last year. Spears said this week that the $33,000 that was returned helps explain about $23,000 that a June report said was unaccounted for. It also includes $10,000 the employee received in the current year, which wasn't covered in the audit review.
Even with the returned money, however, the county said it still can't offer complete assurance that no money was misspent because of problems with receipts or other documentation for more than $108,000.
Some commissioners said they were disappointed about the new report, saying the county had faced months of scrutiny and criticism by the public. Jones said the error left him embarrassed and was unacceptable.
"It has damaged the credibility of the Internal Audit Department and Mecklenburg County as an organization," Jones wrote in the Friday memo. "I have determined the credibility of the Internal Audit Department cannot be restored with the current management of this department."
Jones told the Observer the error was a failure on the part of the auditor to consider information that had been available before the June report.
Commissioners Vice Chair Harold Cogdell said he thinks Jones had no option but to make personnel changes within the department. "Unfortunately, that was an error that should have been picked up on months ago," he said. "It created some real confusion."
Commissioner Bill James said the management changes were a good step. But he doesn't think they explain whether money was misspent within the Giving Tree program, or address his belief that county auditors should report directly to the board's Audit Review Committee and not county management.
Jones said he plans to meet with Weatherly soon to outline specific goals for his work with Internal Audit. But he said it could include, among other things, recommending what resources are needed in the department and crafting job descriptions for the new hires.
Since leaving his director post, Weatherly has worked with the finance department on issues such as a tax review, software contract and MEDIC.
The Giving Tree study was part of a broader investigation into accounting practices within DSS. Auditors cited numerous lapses within the department's finances.
Since June, the county has announced multiple steps to address the problems, including retraining DSS staff on financial policies and procedures, and putting the department's finances within the county finance office's control. In addition, a review of financial practices within all county departments is under way.
The county also has sought to bolster the internal audit department by agreeing in August to hire more auditors. The board also added two commissioners to its Audit Review Committee and removed county staff as members.
Cogdell said it's important the county make sure it has enough safeguards in place to ensure financial compliance within all county agencies.
Cooksey suggested the ethics officer position earlier this week, and commissioners have said they will study the idea. Cooksey said it is common in the private sector, and said it would keep Jones and other managers out of investigations.
