Adams County is suing its county’s treasurer, alleging she’s failed to perform her statutory duties as “tens of millions of dollars remain unreconciled,” according to the complaint. 

The lawsuit, filed Tuesday in Adams County District Court, seeks to gain access to Treasurer Lisa L. Culpepper’s accounts and records. The suit also asks the court to establish an audit committee and appoint a receiver to perform a formal review and take over Culpepper’s duties for the remainder of her term. 

“The Treasurer’s Office serves as the bank of Adams County and by law, the accounts must be open to inspection,” a statement from the county read. “The county and its auditors have been unable to obtain information necessary to review the county’s finances and have exhausted all efforts short of court involvement.”

The suit was filed by the county on behalf of its county commissioners, officials said. 

Culpepper was elected treasurer in November 2018 and took office on Jan. 1, 2019. Her term expires in 2023.

By state law, county treasurers are required to submit monthly and semi-annual reports to the county commissioners for audit purposes. Culpepper hadn’t submitted the required reports since her term began through July 2021, according to the suit. 

However, Culpepper began submitting monthly reports in August, but the commissioners believe there is doubt in the accuracy of the reports as “she has not reconciled her bank statements since March 2021.”

Last October, the board of commissioners hired BKD CPA & Advisors to perform an internal audit on the treasurer’s office. The audit began in January, and despite Culpepper meeting with the auditors, the suit alleges, the company couldn’t complete its duties “because of lack of cooperation by the treasurer.”

Despite the audit being incomplete, the company raised several “red flags” to the county about Culpepper’s office, including the lack of timelines between the receipts of cash and the recoding of cash into the appropriate system, lack of appropriate segregation of duties and questionable journal entry reversals. 

For instance, the treasurer’s office received a deposit of $90,285,973.40 in Coronavirus Aid, Relief and Economic Security Act funds on April 22, 2020, but it was not entered into the treasurer’s software system until seven months later, according to the lawsuit. 

In July, Culpepper met with the county commissioners’ chair and vice chair to address concerns about her office’s lack of cooperation with the audit. At this time, they delivered a letter demanding “access to the office’s books and accounts and demanded cooperation with an internal audit investigation,” according to the lawsuit. 

Culpepper alleged BKD’s audit was biased and stated she would not work with them to complete the audit. The county commissioners, Culpepper and her legal counsel then agreed to hire Eide Bailly, LLP, to complete the audit.

The firm met with Culpepper in early August and sought documentation and information regarding transactional information out of the treasurer’s software system, bank statements and information out of the county’s accounting software, according to the lawsuit.

As of Thursday, 75 days after the initial request, Culpepper’s office failed to provide the information out of the office’s software system, the lawsuit says.

“In this case, the (county commissioners have) no choice but to seek judicial intervention so that the audit itself can be complete without interference by the Treasurer,” the lawsuit read.

Attempts to reach Culpepper on Friday were unsuccessful.

In a statement released Thursday evening, the county commissioners said they are unified on this matter and want Culpepper’s office to be transparent with the county and its constituents, while failing to do so could be devastating.

“We are united as a Board that legal action is required to ensure this independently elected office is transparent in accounting of county taxpayer dollars. The Treasurer serves as the bank for Adams County, and by law, these accounts must be open to inspection,” the statement read. “To date, the Treasurer has not provided the required reports and has not provided adequate information requested to allow for a standard audit of the office. The limited information the Board has been able to gather indicates the Treasurer is not timely or accurate in performing statutory duties, which could negatively impact the county’s bond rating and financial outlook.

“Transparency is among the core values in public services and this Board is committed to providing our residents and partners agencies with access to financial records, audit reports, and confidence in good governance.”