$114,000 of missing Hodge money found in dormant bank accounts

When it came to money, Whitley County Fiscal Court members got some good news for a change during their monthly meeting Tuesday evening.

Whitley County Attorney Don Moses informed the fiscal court that at Judge-Executive Pat White Jr.’s urging, he looking into accounts at local banks and discovered 13 accounts used previously by the sheriff’s department, which contained a total of about $114,000 from the prior administration.

The banks won’t release the funds without a court order, and the fiscal court authorized Moses to file "friendly" litigation in order to have the money turned over to the fiscal court.

He said it will then be County Treasurer Jeff Gray’s job to figure out where it should be distributed too.

White said that state auditors have given some direction on where some of the funds should go. The various funds are from different fee and tax accounts for various years.

A tax escrow account was discovered containing $21,814.17. Moses said he’s not sure where it should go. Accounts were discovered for the 2005, 2006, 2007, 2008 and 2010 fee accounts and the 2006 and 2007 tax accounts, except for one cent belonging to a drug account. Another bank has some various accounts.

Moses said he has consulted with state auditors and feels these are the only bank accounts out there, which were used by the prior administration.

Part of the money will go to the fiscal court, but other portions of it will have to be distributed to the appropriate taxing districts.
Moses said this shouldn’t affect the money, which the county is seeking to recover from Hodge’s bonding company.

During it’s Tuesday meeting, the fiscal court also got other good financial news, and accepted a $74,875 check from the sheriff’s department for excess fees.

The sheriff’s department operates on a calendar year, which ended Dec. 31. It is required at that point to turn over all excess fees to the fiscal court.

The fiscal court later passed an emergency ordinance, which will give the money back to the sheriff’s department.

Chief Deputy K.Y. Fuson told magistrates that two other checks for $18,885 and $16,000 recently came in so they will be getting another check for excess fees.

Fuson credits delinquent tax payments and tax collections for the additional funds.

He added this is a far cry from where the department was when Sheriff Colan Harrell took over last year.

During the past year, the sheriff’s department has purchased new Tasers for officers, purchased one new vehicle out right, and financed three others for a three-year period.

Fuson thanked the fiscal court for their help in bringing the department back up to speed.

In other business, the fiscal court:

• Approved an $195,783 budget amendment, which includes an $85,915 grant for the open dump clean-up program, and a $43,611 grant for the liter abatement program.

• Discussed a jail run canteen program, which was recently taken over from an outside contractor.
During the first full month of operation, it generated $7,800 compared to $600 – $800 that the jail used got from the outside contractor.

White said county officials got the idea to operate their own canteen from the Harlan County Jail, which they toured last year to pick up tips on creating a garden to feed jail inmates.

White said that all the money from the canteen account at Harlan County Jail has paid for the farm equipment the jail is using.

• Re-appointed Jimmy Creekmore to another two-year term on the Cumberland Falls Highway Water District.

• Approved petitions to extend Boston Hill Road and to adopt Majestic View Drive into the county road system.

• Accepted petitions to adopt Kersey Spur Road and Lindsay Lane Road into the county road system. The petitions will be reviewed and voted on during next month’s meeting.