Where Facts And Controversy In The News Come Together In Truth

Thursday, July 23, 2009

Legislative Audit Division Confirms Greyhound Racing Associations Worst Nightmare....


by Jack Swint & Sam Webber WestVirginiaNews@gmail.com
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According to a letter & report from post audit director Stacy L. Sneed to the Joint Committee on Government and Finance, the overall consensus of the racing commission’s problems “resulted from a lack of management oversight. Including miscalculations in the general ledger sheets and other information reports, the financial statements will be misstated causing readers of the financial statements to be misled.”
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According to the states own audit, (for the period between July 1, 2005 & June 30, 2007) the racing commission’s internal auditing, bookkeeping, banking procedures, distribution of funds, compliance of state laws, & overall operation was very poorly maintained......
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The Greyhound breeder’s association members have always questioned whether or not their monthly payment checks are accurate, calculated according to the state statutes, or if other monies are being disbursed correctly. After reading this expose’, there won’t be much to speculate any longer. There is definitely a serious problem according to the legislative audit division!
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Over the past several weeks we have written about problems within the racing commissions auditing procedures, enforcing and or overseeing state statues and the problems at the Tri-State Casino. People can try and poke holes and or raise credibility questions regarding our investigation and findings. But, no one will be disputing the legislative audit committee’s findings.
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This internal state audit & report was prepared by their own watchdog division and is the “smoking gun” that corroborates, and directly points to the weakness of the racing commissioners and former director of racing & auditing director, Joe Cuomo. (since then, Cuomo’s job description and duties have been changed to just audit director)
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In her report, Sherry Sneed goes on to say that “the racing commission does not have an effective system of internal controls in place to ensure compliance with applicable State laws, rules and regulations.”
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And, to date, none of the changes recommended by the state audit division have been fixed. Why Not?? Ask the man who oversees the “post audit committee” Earl Ray Tomblin. Then go up the ladder one more step and ask the governor himself since he is the captain of the ship, and was made aware of the poor operation rating the racing commission received. Both men were presented with copies of the auditors findings but have done nothing with it.
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In fact, inside sources accuse Post Audit Chairperson, Senator Tomblin of ignoring this report. This legislative audit is very damaging to the commissioners, Joe Cuomo and the foundation of the racing commission authority. There is nothing positive noted in this report.
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Is this problem caused due to a lack of personnel to run this division? Yes….. The racing commissioners are only part time positions. Joe Cuomo refers everything to the executive secretary Linda Lacy and or Sherry Dorsey. Both of these ladies are bogged down with performing their own work, and their superiors. From witness accounts and this author’s personal interaction with Mrs. Lacy & Dorsey, the whole operation would implode if not for their efforts to try and keep up with everyone’s responsibilities in the racing commission.
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Here are a few of the findings that the legislative auditor found:
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1. "During the study period of July 1, 2005 to June 30, 2007 we noted that the Director ofAudits general ledger sheets for the period and the monthly calculation worksheetscontain mathematical errors."..........
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2. "During the study period, we noted several internal control weaknesses relating tothe operation of the Racing Commission’s check writing function. These weaknesses include allthe monthly print-outs of check registries during the study period generated by thebookkeeper/registrar lack a corresponding check number associated with the transaction......
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In addition, we noted that checks are hand typed and contain type-over errors on the duplicatecheck copies that reflect errors made on spelling of names and of amounts paid to participants in the Breeding Development Fund. We also noted that check numbers are not always in sequential order and is attributable to checks being generated in the bookkeeper/registrar office at Mountaineer Gaming Resort and the Racing Commission’s Charleston office.”.....
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3. "Our review of the reconciliations performed by the Racing Clerk between thebank statement and the account ledger (book) balances show the reconciliations are ineffectivebecause differences between bank and book balances would not be identified. Additionally, theaccount ledger does not contain a running daily balance of the total amount of funds available inthe local bank account."
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4. "The Director of Audits only records deposits and disbursements monthly in the general ledger instead of recording the transactions as they occur. Also, the Director’s monthly general ledger totals do not match up with the Director’s monthly racing calculation sheet totals for certain months."
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5. One of the focus points is the system for processing, writing and issuing of checks. Pointing out the ongoing problem they found that, “typographical errors, lack of corresponding check numbers made to payees from the Development Fund, non-sequentially numbered checks generated from two different sources, ineffective bank reconciliations and weakness in the segregation of duties does not conform to Chapter 5A, Article 8, Section 9 of the West Virginia Code.
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By not associating check numbers to the payees from the Development Fund Checks, and check amounts cannot be readily verified with the payees. Also, manual typing of checks causes errors in spelling of names and amounts that appear on the checks. This causes duplicate copies to come into question as to the actual amount and name that appears on the original check due to over-typing of corrected errors.” .......
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Sneed’s findings detail numerous state statutes that the racing commissioners and Cuomo are allegedly not enforcing. According to Sneed, the majority of the problems would correct themselves if the commissioners and the director of audits would just follow the mandatory statutes already in place.
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She points out the pending civil litigation between greyhound association president Sam Burdette and the racing commission. This suite, 06-C-2368 is related to the ongoing problems the commission is having on the correct procedures and laws governing how the breeders are paid.
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Currently, this matter is still pending before the Circuit Court. General Counsel for the West Virginia Department of Revenue believes an unfavorable outcome is reasonably possible.
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The racing commissioners and Cuomo were allowed to submit written comments on the issues brought up by the legislative audit division. In addressing each issue, the commission states that they would take the recommendations under advisement, and or make the necessary changes. Racing commissioners also state that with the assistance of the Attorney General’s Office, they would take up the issues with the next rule making committee. Their answers almost appear laxadasial and mundane.
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It also appears from written statements, the Attorney General’s office has taken an active interest in the racing commission’s day to day operation long before this audit. Which, could make them culpable as well.
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Copies of the audit were presented to at least the post audit chair person (Earl Ray Tomblin), the governor and the racing commission.
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We went back this month and obtained recent bank statements and other information to confirm if the racing commission had addressed any of these issues. Specifically, but not limited to the list of problems regarding the bank accounts, bookkeeping and operation controls. Those specific issues were said to have been resolved by the commissioners during the exit interview back in April, 2008.
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We also checked with the “rule making” committee for any requests being made to them from either the racing commission or the attorney general’s office directly related to the legislative audit. Earl Ray Tomblin is also chairperson of this committee.
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According to Debra Graham, the “Rule Making Committee” deadline for the 2009 session was closed out on August 29, 2008. Our sources state that nothing had been submitted relating to either the racing commissioners or attorney general’s office in reference to the audit problems. Allegedly, some requests were submitted not related to the problems.
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On the surface, NOTHING appears to have been resolved as of the writing of this story. We examined samples of bank statements for May, June, July & August 2008, and found checks still grossly out of sequence and or missing.
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In April 2008, the racing commissioners stated in the audit report these issues were fixed, the examples below show they were not.
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Example: (as of May 2008 checks are still out of sequence and missing...)
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May 2008 - Greyhound Fund account shows checks missing from numbers 3726 to 3803.
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June 2008 - Greyhound Fund account shows checks missing from numbers 3784 to 3804
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July 2008 - Greyhound Fund account shows checks missing from numbers 3765 to 4001
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Aug 2008 - Greyhound Fund account shows checks missing from numbers 3923 to 4002
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Note: No evidence has been uncovered to suggest that anyone is stealing money, but it does point towards poor management responsibilities.
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Bottom line, this is a very shoddy way of conducting business. In any other corporate job, most everyone would be fired, including Earl Ray, Joe Manchin, Joe Cuomo and at least one member of the racing commission. Can they deny any direct knowledge of the problem? Of, course. That’s Manchins favorite line. Deny, deny and deny.
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Earl Ray Tomblin is both chairperson on the “post audit” and “rules” committee’s which oversee these audits. Mrs. Sneed told this author that it takes a specific legislation order to even conduct that audit. Maybe it is time for Earl Ray to take off some of the multiple committee hats he wears and get up out of several chairs, and he sits on.
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This should all fall in his lap for not making sure the problems were quickly addressed and fixed. But then, how can there be any investigation if laws were broken, Earl is over the special investigations committee also....
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And just how hard would it be to fix all of these problems?? Acting Legislative Auditor Stacy Sneed points out that the problems could be easily corrected if they would just follow the state statutes!
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Other noted problems exist like the fact Commissioner George Sidiropolis has only been seen at one commission meeting in the past year and a half. No one will complain about his lack of work because he was personally appointed by the governor. He has been in numerous appointed state jobs over the years and is a defendant in dozens of civil suits against the state because of it.
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Director of audits, Joe Cuomo refused to even address our FOI requests and answer auditing questions, which is his job. He always referred them to Linda Lacy to handle.
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Who’s really suffering from this disorganized mess? Members of the greyhound & thoroughbred associations, kennel owners & their families.
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It should also be noted that these same types of errors and miss-management are directly related to the same type problems involving the commissioner’s neglect in enforcing WV state statutes governing the responsibilities of the Tri-State Casino & Racetrack owners.
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Earl Ray Tomblin, the governor and anyone else at the statehouse can say these problems were being addressed….. The facts and documents we obtained at the end of this past August, show no one was attempting to make any changes at all.
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Links:
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2008 Legislative Audit (smoking gun)
http://www.legis.state.wv.us/Joint/Postaudit/PA_Reports/audit_docs/PA_2008_41.pdf
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2000 to 2007 Internal Racing Commission Audits
http://www.wvf.state.wv.us/racing/ (then click on section marked “annual reports”)
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Related stories: Scroll down to the below archived stories

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End Of Story……
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Contact Information:
Jack Swint & Sam Webber.
P.O. Box 78
Shoals, WV 25562
304-549-4978

WestVirginiaNews@gmail.com


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7 comments:

Anonymous said...

Damm, what a story! I would love to see Earl Ray Tomblins mug after he reads this.

Is anything in this states government sacred? I hear the word "recall and impeach" for him and the governor.

Anonymous said...

Who's minding the store???!!!

Anonymous said...

Joe Manchin said politics is a contact sport in this state and if you're not up for it you should get the hell out.That is what we intent to do with Earl Ray and Joe Manchin get both the hell out of office.Then bring charges for conspiracy and racketeering.

Anonymous said...

Why has this information not seen the light of day in the news media??
If what you have stated here is true it would seem to me someone would be interested in bring this to the publics attention.
Have you made this info available to the news media?

Anonymous said...

This type of information will NEVER be brought out in public news media. There are no true investigative reporters within a 100 mile radius. The Sheepal will continue to be led to the slaughter by politicians. Racketeering is rampant, but there's no one in high places that is not part of it. Where does one go for help? Not in WV.

Anonymous said...

People are getting the message and there are a lot of witnesses come out from "high places".
Even the Romans were brought down. People are now going to try and save their behinds. Better than a long lock-up, anyday.
(you don't save your behind there, at all)

Anonymous said...

The beautiful thing about all this is that according to one reader in "THE KILLING FIELDS OF CHAPMANVILLE, WEST VIRGINIA", it will be the Greyhounds, themselves, that will put EARL RAY TOMBLIN and HIS MOTHER, FREDA, in jail.
Read it. It cannot come soon enough.
The poor Dogs. EARL RAY TOMBLIN is a bastard.

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Charleston, WV, United States