4 | ROUTT COUNTY OFFICE OF ROUTT COUNTY TREASURER BRITA HORN, Treasurer P.O. Box 770907 Steamboat Springs, Colorado 80477 (970) 870-5555, fax (970) 870-5426 Email treasurer@co.routt.co.us | atric xarsciner | Web Site: http:/www.co.routt.co.us! — hiet Deputy Date: 7/20/2017 Tansy Gree” Dear Taxing entity, We recently learned that the tax distribution that you re | Katrina spivey fed for April 2017 was only a Deputy partial distribution, rather than a full distribution. Working with our software vendor, we have addressed this issue. The enclosed check or a corresponding ACH transfer represents the balance of this distribution with interest. I would like to extend my thanks to the taxing entities who alerted us that their distribution this, In normal circumstances, our routine internal procedures would have identified and ‘caught this issue earlier. After a full investigation, we have identified why they did not, and | of taxes were under the budgeted amounts, so that we could promptly address and correct have taken appropriate corrective action to ensure it will not happen agai One of the corrective steps that we have taken is to escalate the respor lity for tax | distributions to Patrick Karschner, the Chief Deputy Treasurer. If you have future questions | regarding your monthly distribution, please contact him at 870-5425. ‘As Treasurer, I take full responsibility for this partial distribution, as I take full responsibility for all of the successes and setbacks of the entire Routt County Treasurer's team. I believe that the integrity and honesty of the top person in an office sets the tone of the entire office. In that vein, I will continue to be transparent and honest both when things go well and when things go wrong. please call me directly at 870-5420. Sincerely, a Brita Hom Routt County Treasurer you in every aspect possible, If you have any questions or concerns about these figures or would like further information,July 27,2017 Brita Hom Routt County Treasurer P.O. Box 770907 ‘Steamboat Springs, CO 80477 (hand delivered) Re: Treasurer Office Letter dated July 20, 2017, to taxing entities regarding partial distribution of property tax collections for April 2017 Dear Ms. Horn: We received the letter referenced above on Jul 25, 2017, however, please know that we have been aware of a problem with the property tax distribution since July 13, when informed by County Manager Tom Sullivan. Mr. Sullivan was advised on the 13th by Mr. Strnad that property tax distributions to Routt County were behind by 10% from seasonal averages. Mr. Sullivan believes that Accounting staff made inquiry to your office on or prior to the 13". ‘The failure to distribute all of the funds available in April 2017 is a matter of considerable concern to us. We have several questions we would like you to answer. 1. What is the normal procedure for distribution of property taxes to jurisdictions, the full amount of property taxes collected for the period to be distributed and what is the normal intemal procedure that is used to censure that distributions are made by the statutory dates? 2. What caused the failure to make the full distributions in April 2017? 3. What were the circumstance that caused normal internal procedures used to check accuracy of distributions to fail? 4, How have the internal procedures been changed to ensure accurate and timely distributions in the future?5. In the July 20, 2017 letter you state that the balance of the April 2017 distribution has been made with interest. What Routt County fund was the interest taken from and under what authority was the interest payment made? Additionally, what was the rate of interest paid to the taxing entities and under what authority was the interest rate set and interest payment added to the distribution? 6. Considering that the partial distribution would leave tax collection funds ina Treasurer account, how were those funds identified and safeguarded for the period from April to July 20? ‘We request your immediate response. Sincerely, ROUTT COUNTY BOARD OF (TY COMMISSIONERS jimotity V. Corrigan rari Hermacinski‘Sent: Monday, July 31, 2017 8:38 AM To: Tom Sullivan Ce: # BCC; Patrick Karschner ‘Subject: Treasurer Update Good morning Mr. Sullivan, Thank you for letter you hand delivered on Friday to our office. That was penned by the BCC. We are currently working with the software company and industry experts for a plan of action for our office to move forward. Many of them were out of the office on Friday and we are hopeful that we can reach them today or at least earlier this week, Our office is taking this issue seriously and we will get back to you and the BCC as soon as we can with how the treasurers’ office will be handling the situation at hand. Attached is the letter we sent out to the taxing entities, in case the finance department did not send to you, ‘Thank you, Brita Horn Routt County Treasurer's Office Routt County Treasurer and Public Trustee hutp://www.co.routt.co.us ‘Treasureriaco,routt.co.us Ec aco, PO BOX 770907 822 Lincoln Ave ‘Steamboat Springs, Colorado 80477 Phone: (970) 870-5555 Fax: (970) 870-5426 Page 1 of 2ROUTT COUNTY BOARD OF COUNTY COMMISSIONERS Box 773598 - Steamboat Springs, Colorado 80477 Phone: 970-879-0108 - Fax: 970-879-3992 August 1, 2017 Brita Horn Routt County Treasurer P.O. Box 770907 Tiny v. contoan Steamboat Springs, CO 80477 (Hand delivered) Douglas B. Monger District 2 Dear Treasurer Horn, (Cart Hermacinekt Gosteatd) The Board previously received your letter dated July 20, 2017 to local taxing Thomas A. Sullivan entities concerning partial distribution of taxes. On July 27, 2017, the Board. signed County Manager a letter to you asking very specific questions about your Office’s handling of distribution of property tax collections for April 2017. Those questions were directly related to, and promulgated by, the statements you provided to the taxing entities. The Board is in receipt of your email directed to Tom Sullivan dated July 31, 2017 as response to the Board’s inquiries, While you state therein that your Office “will get back to you and the BCC as soon as we can with how the treasurers? (ic) office will be handling the situation at hand”, the Board finds this unacceptable as to several of the questions posed to you. First, some of those questions relate to existing procedures and do not require an examination of how “the situation” will be handled. Second, your Office has already taken certain actions (¢.g. payment of interest to taxing entities) and the Board demands an immediate and responsive explanation related to those actions, For your convenience, the questions to which the BCC requires an immediate response (by close of business tomorrow) are restated as follows: 1. What is the normal procedure for distribution of property taxes to jurisdictions, the full amount of property taxes collected for the period to be distributed and what is the normal internal procedure that is used to ensure that distributions are made by the statutory dates? 2. What Routt County fund was the interest taken from and under what authority was the interest payment made? Additionally, what was the rate of interest paid to the taxing entities and under what authority was the interest rate set and interest payment added to the distribution?3. Considering that the partial distribution would leave tax collection funds in a Treasurer account, how were those funds identified and safeguarded for the period from April to July 20? The other questions are still relevant and the Board requires answers to them by August 15, 2017 unless you provide good cause as to why those questions cannot be timely answered and a date by which you expect to have answers. CRS. §30-10-709 (1) provides as follows: ‘The county treasurer shall keep a just and true account of the receipt and expenditure of all moneys that come into his or her hands by virtue of the office, in books to be kept by the ‘treasurer for that purpose, which books shall be open at all times for the inspection of the board of county ‘commissioners, or any member thereof, and to all county and state officers; and, at the meetings in July and January of the board of county commissioners, or at such other time as the Doard may direct, the treasurer shall settle with said board his or her account as treasurer, and, for that purpose, the ‘treasurer shall exhibit to said board all his or her books, acoounts, and all vouchers relating to the same, fo be audited and allowed, The Board believes that the information. sought from you is required to be maintained by your Office and supplied to the Board. Please provide the requested information pursuant to your statutory duties and responsibilities, : Sincerely, ROUTT COUNTY BOARD OF COUNTY COMMISSIONERS [Ln Amotly V. Corrigan las B. Monger C.