Scott Co. audit flags problems with Ferrell

~ The report said the former sheriff's use of DARE money and other questionable financial practices need more investigation.

In his last weeks as sheriff of Scott County, Bill Ferrell dipped into the county DARE account to pay for his retirement dinner and to move personal belongings out of his office, according to a state audit released Wednesday.

Ferrell's use of DARE money for personal expenses was revealed in the regular audit of Scott County issued by State Auditor Claire McCaskill. The county's DARE -- Drug Abuse Resistance Education -- funds were kept in a bank account under Ferrell's name rather than in the county treasury.

Ferrell's use of the DARE money as well as other questionable financial practices and his removal of 10 guns from an evidence room in his last week in office need more investigation, the audit recommends.

The audit covers the two years ending Dec. 31, 2005. Halfway through that period Ferrell, a 28-year veteran of the office, retired and was replaced by newly elected Sheriff Rick Walter.

The audit reports that when Walter went looking for the DARE money in February 2005 and asked Ferrell to turn the remainder over to the county treasurer, Ferrell replied that the account was empty and had been closed.

A bank statement showed that the account had $10,872 in it Dec. 31, 2004, Ferrell's last day in office. The account received a $900 deposit, and the final distributions included a $10,000 donation to Southeast Missouri State University for a scholarship and a $1,772 cashier's check issued to Ferrell.

"I would say it has got to raise some eyebrows," Walter said Wednesday.

Problem areas in the sheriff's department cited by auditors include:

* Seized property. The audit cites poor inventory records, lax control of access to the property and the removal of 10 guns from the evidence room by Ferrell during the last week of his term.

* DARE money. In addition to using DARE funds for personal expenses, Ferrell made donations to not-for-profit organizations, including the Sikeston Jaycees, Kenny Rogers Children's Center and the Missouri State Highway Patrol golf tournament.

* Mileage reimbursements. Ferrell had a fleet of personal vehicles used by department personnel for various functions, including transporting prisoners to state custody. No mileage logs were maintained, and Ferrell received $33,760 for mileage reimbursements during his last year in office.

An investigation should be conducted by an outside agency, possibly the highway patrol, rather than by the sheriff's department itself, Walter said. He and Scott County Prosecuting Attorney Paul Boyd have discussed how to proceed, he said.

Any request for help from the patrol must come from Boyd, Walter said.

"In my opinion, we need an outside agency," Walter said. "To be perfectly honest, if we can't get somebody to look at it, we'll do it. And if there is anything to turn over to the prosecutor, we will."

Boyd could not be reached Wednesday for comment.

Ferrell did not respond to messages left on his mobile telephone. In his replies to auditors, Ferrell said he removed five, not 10, guns and returned them to their owners.

The DARE money, he said, came from private fund-raising activities and "were not county monies; were not remuneration for official services; they were not accountable fees and were spent only as benevolent gestures."

Ferrell told auditors he repaid $900 used for his retirement party and gave the $1,772 cashier's check to the St. Louis Shriners hospital.

Walter said he keeps his DARE account in the county treasury and spends money only to support the deputy who provides DARE services in area schools.

DARE money raised by county employees is county money, he said.

Prisoner transportation is a big source of reimbursements from the state, Walter said. The state pays mileage costs for each of two guards and for each prisoner transported. The county recently purchased a van so that eight to 10 prisoners could be taken to state custody at a time.

The sheriff's office no longer uses private vehicles for any official work, Walter said.

The audit also looked at the operations of each county office. Most of the recommendations called for more diligent practices, such as endorsing every check or money order as it is received, more frequent bank deposits, properly documenting budget changes and making sure that funds held for individuals are returned as quickly as possible.

rkeller@semissourian.com

335-6611, extension 126