Former Santa Cruz County Treasurer refuses media questions after court
Elizabeth Guffer faces three federal felony charges stemming from a decade-long complaint of embezzling nearly $40 million from Santa Cruz County.
- Rep. Matt Gress is proposing legislation that would increase the oversight of county treasurers after a former treasurer pleaded guilty to embezzlement of nearly $40 million.
- The bill would require the AZ Audit General to conduct a more detailed procedural review of the county accountant’s office, including an assessment of compliance with accounting standards and internal controls.
- Other bills introduced by Rep. Gres aim to give Arizona Auditors the authority to access financial records and require more training for elected officials.
Republican lawmakers want additional oversight and deeper audits to the county treasurer’s office after a former county treasurer admitted to embezzling $40 million late last year.
These provisions are based on laws from Rep. Matt Gress of R-Phoenix. The bill is being carried out through the Arizona Legislature as Democrat Elizabeth Guffer, who served as treasurer for Santa Cruz County, waits for embezzlement of public funds from 2014 to 2024. Gutfer admitted to committing guilty for money laundering and tax evasion for tax failure of more than $13 million.
The Arizona Audit General was an office appointed by the Legislature that has audited states and local authorities for many years, and could not find theft. The lacking funds came into view in April after county banks flagged suspicious activities leading to investigations by county, state and federal agencies.
One way Gutfahr could avoid detection for a long time was to leverage her knowledge of the month where state auditors review bank statements.
Court records show that during the annual audit by the Arizona Auditor, the agency reviewed its financial statements for the year-end from the previous year to June. Gutfahr avoided detour funds for those few months.
What does the bill do?
State law already requires the Arizona Audit General to conduct an annual financial statement audit of financial transactions and accounts already held by all counties. Gress ‘Bill tries to expand what agents need to review.
Procedural review It is required by the bill Includes assessment of accounting standards and management and compliance with internal accounting controls. Following the review, the auditor must submit recommendations to the county accounting, the county board of supervisors, and the joint legislative audit committee. The county treasurer’s office must notify the auditor whether the office agrees or disagrees with the findings of the review, and whether it agrees to whether it implements recommendations.
“I think this will also improve the ability of county treasurers to manage their duties,” Gres said at a legislative hearing on the bill. It passed the house on February 18th and is moving forward in the Senate.
Coconino County Treasurer Sarah Benatal is one of the bill’s supporters. Benatal was contacted by Santa Cruz County after the lack of funds were discovered. She found that, according to court records, she wrote accurate reports, adjusted bank statements in a timely manner, relied on screenshots of bank statements, as well as writing accurate reports and adjusting bank statements in a timely manner, failing to adhere to standard practices and procedures.
“Auditors aren’t just catching up on intentional bad behavior, so I support it,” Benatal wrote in an email. Treasurers need to be able to utilize these types of audits to improve our office. ”
Ever since Benatal was first appointed to county accounting in 2014, she has seen Arizona Auditors’ General Audit do a thorough and thorough financial department.. When she was first elected, she said the auditor would meet in person with her department to conduct the test.
She said quality has declined over time and audits are not very involved. Benatal said Coconino County recently hired a third-party auditing company to specifically audit procedures used by the treasurer’s office, and was an issue that state auditors haven’t seen.
“This bill ensures it moves forward,” she said.
Gres said he spoke to Benatal and discovered that Arizona Audit General had a limited role in reviewing the county treasurer’s office.
“They just get financial information that keeps the treasurer actually going to the office and sitting with staff, understanding what the process is and not gathering information about how that office works,” Gres said of the state auditor.
Another supporter of the bill is Craig Sullivan, executive director of the Arizona County Supervisors Association. He said the County Board of Supervisors, which oversees the operations of the county, does not directly control the office and requires the bill.
“HB2369 aims to ensure that these offices adhere to statutory procedures and follow appropriate accounting principles, and we believe the auditing process will be improved,” he said.
Other bills are trying to expand the powers of the Arizona Auditor, and require more training
Gress also introduces other laws that give Arizona audit generals more power, requiring more training for elected officials.
House Bill 2368 will allow state auditors to access financial institution records directly from the institution.
The bill comes after the Arizona Auditor General, a report on the investigation into Guffer’s fraud, admitted that he had no authority to directly obtain the financial information of the county treasurer directly from the financial institution. Instead, the county had to provide the necessary financial information, resulting in the auditor receiving a fake investment statement.
The bill was passed by the House of Representatives on February 18th and is being considered by the Senate.
Another Gres bill, House Bill 2433, aims to address training of elected officials. It also passes the House and the Senate.
The bill requires the county’s finances and the board of supervisors to complete continuing education courses.
County Treasurers must complete a minimum of 10 hours of continuing education courses each year during their tenure, with at least an hour dedicated to wasting, fraud and abuse.
The Board of Supervisors must complete at least six hours of professional development training, including courses on public meeting laws, financial and budget issues, particularly those relating to county governance.
