The Arizona Auditor General confirmed that over $39 million was allegedly stolen from Santa Cruz County by its ex-treasurer who resigned in April.
"As part of their responsibility to prevent and detect fraud, Santa Cruz County (County) officials took appropriate action by reporting to us and the Federal Bureau of Investigation (FBI) alleged financial misconduct by the former County Treasurer (Treasurer)," the auditor general's office stated.
The report determined that former county Treasurer Elizabeth Gutfahr had 182 "alleged unauthorized transfers" of taxpayer dollars from March 2014 until March 2024, adding that she "bypassed internal controls" to do so. Her office also reportedly submitted a minimum of 76 "false and irregular monthly Cash Reconciliation" documents to county officials since 2017, and there may have been around 121 treasurer reports with falsehoods since 2014.
The auditor general also provided recommendations to the county to safeguard against future incidents involving large sums of money being allegedly taken by public officials. Most notably, they are asking that transactions are marked down by an employee not connected to public monies, having cash transactions marked down in the "Treasurer's Journal," and increased oversight for the county Board of Supervisors and other county workers on how money is used.
"Because the Treasurer had access to the chief deputy treasurer’s bank credentials, she was apparently making transactions in County Treasurer’s Office accounts without anyone approving or otherwise monitoring those transactions," the report stated.
In addition, Auditor General's office is also asking the state legislature to pass legislation that would give them "independent access to financial institution records" and have new treasurers and their chief deputy's go through specific training, which would be reforms that would cut across counties.
