Commissioners left in the dark this time, too

No doubt, I have criticized Mooresville commissioners many times in the past for conducting the peoples’ business behind closed doors – for their seeming unwillingness to be open and honest with the public, their constituents, about issues of importance to us.

But maybe sometimes it isn’t because the commissioners refuse to be open and honest with us – maybe it’s because they themselves are left in the dark when town staff isn’t providing pertinent information to them.

At least one commissioner has had to repeatedly demand updates on the ongoing Cops for Kids investigations that the town launched in July. Despite that, as recently as last week, commissioners were caught off guard by a new development in the Cops for Kids investigations that, come to find out, isn’t really so new.

Two Town Hall finance administrators have been aware since July of the former police chief’s potential misuse of drug asset forfeiture funds, but they didn't see fit to inform commissioners about it until last week – and only after the Report visited Town Hall to retrieve documents related to the matter.

Town Finance Director Maia Setzer said today that she, along with Town Accountant Deborah Hockett and Acting Police Chief Carl Robbins, notified an SBI agent on July 31 about the issue.

Town Attorney Steve Gambill said the U.S. Attorney’s office was notified on Thursday, Sept. 18, about former police chief John Crone’s potential misappropriation of federal funds. “Other than what was in the press release,” Gambill said, “I am not at liberty to discuss it beyond that point. If there is a point when I can discuss this in more detail I will be glad to but I cannot do so at present.”

Commissioners Mitch Abraham said he first learned about the potential problem with the drug asset forfeiture accounts on Wednesday afternoon, Sept. 17, when Setzer sent the following e-mail to commissioners (click the document to enlarge):


“The last sentence,” said Abraham, “was when I first heard of any discrepancies or had any ideas of the drug asset forfeiture monies being involved in any of the investigations.

“Besides being told of the upcoming release to the media on this past Friday,” Abraham added, “I have not talked with any staff about these discrepancies.”

In an e-mail on Sept. 18, obtained by the Mooresville Tribune and the Report in a public-records request last week, Commissioner Miles Atkins asked Setzer when she first became aware of the discrepancies. He also asked “who else has known about this prior to the board being made aware of it” – and how long they have known.

Setzer responded: “I began comparing the spreadsheet to our financial system when I received a full copy from the police department on Monday and after Ms. Gatton asked where she could obtain information about the asset forfeiture accounts.

“I asked Deborah Hockett to help me with the comparison of the two files on Tuesday afternoon,” Setzer said. “I notified the town manager and town attorney of the discrepancies we were continuing to find on Wednesday.”

She told Atkins that “any employee can maintain any type of a spreadsheet. The fact that it is maintained does not make it factual or ‘official’. Departments have maintained their own financial information for years as they did not have access to our financial system until we began the implementation of Munis.”

Setzer did not answer Atkins’ question about who knew about the issue – and for how long – before the town board was informed.

Commissioners Frank Rader and Miles Atkins said they learned of the problem mid-week last week – “apparently right after you left (Setzer's) office with the records (on Wednesday),” said Atkins, responding to Report questions today.

Commissioners Mac Herring and Chris Carney were informed by Gambill about the matter late Tuesday night, Sept. 16.

Carney said he had “lengthy conversations with staff” on Wednesday and Thursday “trying to understand exactly what had happened and encouraging us (the town) to be completely honest with any misappropriations that had been found.”

Abraham and Herring commended Town Manager Steve Husemann – who began work here on Sept. 2 – for what Herring called his “proactive approach.”

“He was immediately forthcoming and made the appropriate request to the outside agencies who needed to be involved,” Herring said. “His press release indicates that a new era for a transparent and more openly honest municipal administration has finally arrived here in Mooresville.

“I believe this is the tone being set,” Herring added, “and as a result, many of the concerns and ‘hunker down’ mentality that has plagued us in the past will soon be greatly diminished. It is a new and exciting time for us here in Mooresville, and I am proud to be a part of it.”

Likewise, Abraham said: “Mr. Husemann’s comments in Friday’s media release give me great hope that we will use these negatives in the process to produce a positive result to better the system and make sure that this does not happen in the future in any of our departments.”

Abraham said he feels confident that with the town’s reporting of the potential misappropriations to the U.S. Attorney, “these documents will be well researched for any further misgivings and wrongdoings and then reported to us and the citizens of Mooresville.”

Abraham said the town must continue to look for the investigations to answer many of the unanswered questions. “These investigations must continue, no matter what length of time they take to be complete, so as to be complete and as thorough as possible.

“This does not mean I personally like the amount of time that it is taking,” Abraham said, adding however that he wants “all of the investigations to be vetted to the fullest!!”

When all the results are in, Abraham said, “I will push for any punishment to the letter of the law that is recommended by this investigation.”

When asked his reaction to the recent development in the Cops for Kids investigations, Rader responded: “Not reacting. This is labeled potential and report is in process.”

Carney, however, said: “My reaction was probably the same as the public’s: how could something like this happen?!

“I was very unhappy and further disappointed,” he said. “I asked for a meeting with Mrs. Setzer, Mr. Husemann, and Mr. Gambill to understand what possible laws had been broken and what public statements we were prepared to make.”

Carney said he hopes to “get a better understanding of who in administration knew what (and) when,” regarding the former police chief’s potential misuse of funds.

Both Carney and Atkins are looking beyond the Cops for Kids situation and into the future, attempting to find a way to prevent these kinds of situations from reoccurring.

Carney said he wants commissioners and town staff to “look into what opportunities we have to better implement checks and balances with department budgets.

“As you know,” he said, “the board approves an overall budget and then staff and administration are responsible for maintaining expenses within that budget.”

However, Carney asked: “What happens when a department head has authority to divert expenditures within their budget, or additional funding from outside sources?”

Carney said he believes “many, many meetings will take place in upcoming days and weeks to discuss these two questions!”

A clearly frustrated Atkins added: “Is this symptomatic of a much larger problem throughout the town?”

He said “past incidents involving questionable accounting practices” have made it “obvious” that the town doesn’t have “the oversight nor checks and balances in place.”

He said “the question that begs to be asked is: do we have the right people in the right positions to oversee and account for the financial integrity of the town?

“I would imagine at some point Mr. Husemann will be asking himself that same question,” Atkins said.