Madison County Clerk Billy Gabbard had plenty to say Thursday about several state audit findings announced Wednesday pertaining to the operations of his office.

The first finding reported in the audit stated: “The county clerk should not alter public records in order to renew motor vehicle registrations that have delinquent taxes.”

The audit gave an example that involved a particular customer who had delinquent motor vehicle tax liens on other vehicles.

“Nothing was altered,” Gabbard said. “One gentleman came in who had lost his job and his wife had never worked. He was their only source of income. They (repossesors) took two of the cars. They had one old, junky car left that they needed for his wife (who now had to work because of her husband’s job loss) to get back and forth to work.”

As a way to ensure the man would have a car his wife legally could drive, Gabbard said he told the man he could “go around” the delinquent taxes so that the man could license that one vehicle.

In order to do this, the Social Security numbers pertaining to the vehicles with the delinquent taxes were removed.

He said the man’s Social Security number was never changed to another number during this process.

“You have to completely remove it, and put it back in,” Gabbard said. “But, as soon as I do that, I have to put them right back in, and interest and penalty never stops.”

Gabbard explained to the gentleman that the delinquent taxes still would have to be paid.

“The longer it goes (unpaid), the more it’s going to be,” he said. “I explained that to him. He came back in and paid both of them, just like I told him. The man was doing the best he could do, and I was trying to help him. And, if that’s wrong, well then, they might as well write me up again for next year because if I can help somebody else, I will.”

Gabbard said this process was not an example of overriding internal controls, because all of the work performed for this man was documented.

The second finding in the audit reads: “The county clerk should ensure his personal registration is accounted for properly and should not override established internal controls.”

The same process described above was performed for a family member of Gabbard’s, but only because he and that relative were co-owners of the vehicle.

“Her (the relative) Social Security number was tied to my vehicle,” Gabbard said.

The vehicle was a 2005 Chevrolet Tahoe with a state assessment of $24,650. This number is based on the NADA (National Automobile Dealers Association) figures that determine a car’s appropriate mileage with the assumption that a person puts an average of 15,000 miles on a vehicle a year. Based on these calculations, the 3-year-old vehicle should show only 45,000 miles.

However, the vehicle’s value based on the actual mileage along with other wear and tear was only about $11,000. The car’s actual mileage 143,000, Gabbard said.

“Mine had almost 100,000 more (miles) than it should have because of the amount that I drive,” Gabbard said.

To correct the discrepancy between the two different values of the vehicle, “I was going to talk to the PVAs (Property Valuation Administrator) office, but I kept putting that off and that was my fault. I was going to talk to them and get them to value it at what it should be valued, but I never got around to it.”

When his relative came in to license her vehicle, this lack of action caused her to be penalized for the delinquent taxes Gabbard had yet to pay.

“Rather than hold her up, I said just go around it until I can talk to them (the PVA’s office),” he said.

Gabbard ended up paying the taxes on the NADA value, “... which is almost $13,000 more than what it was actually worth,” he said.

The payment Gabbard made was $200 more than what should have been paid based on the $11,000 value.

“I didn’t want to cause a stink, so I went ahead and paid it,” he said.

The state audit also claimed that Gabbard did not pay the penalty and interest on the delinquent tax.

“I didn’t pay the penalty and interest because I’d already paid $200 more than I should have, and I agreed to go on and do it,” he said. “Now, granted, maybe I should have gone ahead and paid it, and maybe none of this would have come up (in the audit).”

Gabbard said this aspect of the audit’s findings was nothing state auditor Crit Luallen and her team had to research.

“It’s not that they ran around and found it,” he said. “I told them.”

Another state audit finding was about the lack of security when it came to employee’s computer passwords, and noted that Gabbard had asked employees to reveal their passwords at times.

County clerk employees must have two different passwords for the two separate programs used to collect fees. One system pertains strictly to vehicle and voter registration, and the second system takes care of all other fee collections.

“If someone has a customer and I sit down (to assist the employee with a transaction) and use their computer, I should log out of their (system) and use my passwords,” he said. “But sometimes, I don’t think about it. I sit down, help the person and I’m done. If (my password) expired and I had a customer in front of me and I didn’t want to call and take 20 minutes to get another password, I would just say ‘Log into this.’ I’d do it and be done.”

Allegations of handling payroll inappropriately also was a concern in the audit, including the findings that timecards were not being signed by the employees and that documented overtime had not been paid.

Nothing has changed in the way timecards are handled at the county clerk’s office, he said.

“They’ve audited me for six years and they’ve never mentioned that, ever,” Gabbard said.

However, he now is in compliance with state auditor’s recommendation, meaning that all timecards are now signed by the employee, personnel in charge of handling time cards and himself.

As for not paying documented overtime, Gabbard said that all pre-approved overtime was paid.

Some employees arrive at work early on their own accord and clock in before their official work day begins, Gabbard said. That is not considered to be pre-approved overtime in the county clerk’s office.

Another issue brought up in the audit was the use of funds by the clerk’s office. The finding reads: “The county clerk should only expend funds for allowable purchases,” and refers to a $194 portrait of Gabbard that he recently had made to be displayed in the Madison County Courthouse.

Gabbard said when he was elected as county clerk in 2002, he was encouraged by courthouse employees to have a picture of himself placed inside the courthouse so that the county clerk would become a familiar face in the courthouse, and also so customers would know who they’re paying their money to.

Seven years have since passed and Gabbard’s appearance had changed, he said.

The new portrait was paid for out of the same account used to purchase the 2002 portrait, and has never been called out in an audit until now, he said.

The recommendation included in the audit was that Gabbard reimburse the county the money used to pay for the portrait, and Gabbard said Thursday he would pay the money back to the account.

Among the negative audit findings, Gabbard said no state audit ever includes positive things they find.

“They don’t comment about how we took in $19,355,604 and we balanced to the penny,” Gabbard said.

Every county clerk employee who takes in fees on a daily basis is to provide a daily account for the funds they received, and it is authorized by Gabbard and his two bookkeepers.

“You can’t balance $19 million if you don’t have this (referring to the records employees turn in daily),” he said. “There’s no way, because it’s impossible to keep up with that kind of money.”

Ronica Shannon can be reached at rshannon@richmondregister.com or 624-6608.