Audit uncovers inappropriate tax breaks, other questionable actions
JEFFERSON CITY, Mo (Dec. 7, 2016) Missouri State Auditor Nicole Galloway has released an audit that uncovers new inappropriate and potentially fraudulent activities by former Wright County Collector Cynthia Cottengim. The former collector resigned in July after pleading guilty to forging nearly $500 worth of checks from county accounts. Now it appears that was just a fraction of the amount mishandled during Cottengim’s time as Wright County Collector. The total amount is likely to exceed $7,000.
“My audit shows the former collector broke her promise to the citizens of Wright County, and when elected officials violate their oath to the people they represent, they must be held accountable,” Auditor Galloway said. “My office will continue to work with law enforcement on this matter, and county leaders must take a hard look at the systems they currently have in place. Government at all levels must include safeguards that prevent the opportunity for fraudulent activity, and ensure attempts to defraud taxpayers do not go unnoticed or unpunished.”
Auditor Galloway’s report describes how the former collector allowed county property tax records to be manipulated in order to give about $6,500 in property tax breaks to herself, her family members and others. The property tax system shows thousands of dollars in property tax bills owed by the former collector and her family members that were marked as paid, but with no documentation or proof to indicate any of these payments were ever made. The county collector also adjusted records to reduce penalties owed by herself, her family members and others on delinquent property taxes. In some cases, adjustments were also made by the former deputy collector.
In addition to the property tax breaks, Cottengim unlawfully paid herself about $700 in railroad and utility taxes and property tax commissions. The law allows her to make a commission on certain city taxes, but in some cases she overpaid herself and other times she took a commission when it was not allowed by law.
The audit also describes concerns related to the former county collector’s failure to properly manage office operations, or even to show up to work many days. This prevented her from completing her job duties, including balancing her office’s bank accounts and filing annual settlement documents.
Numerous other operational concerns were identified through the course of the audit. These are outlined in detail in the report. Because the office has received an overall performance rating of poor, the lowest rating available, Auditor Galloway will return next year to review the operations under the management of newly-elected county collector Shelly Chadwell.
“The new county collector certainly has an important task ahead as she puts the office back in working order and restores the trust of the people in their local government,” Auditor Galloway said. “In addition, the collector and the county commission should review the system that allowed these activities to take place, and act swiftly to implement the corrective actions I have recommended to improve operations and accountability in the office.”
An audit of Wright County was released in November. County audits typically include a review of the county collector’s office, but because the Wright County Collector resigned in July, the report for the county collector’s office was completed and released separately. State law requires an audit when a vacancy occurs in a county collector office.
A complete copy of the audit report for the Wright County Collector’s Office is available online here.
