Fair audit draft ready next week

COEUR d'ALENE — Draft findings from a forensic audit of the North Idaho Fair's finances will be released in a public meeting next week, the Kootenai County Board of Commissioners announced Monday.

The forensic audit, approved by commissioners in September, was conducted by Spokane-based CPA firm Eidy Bailly after an internal audit performed by the County Clerk's office in August revealed some fairgrounds employees had taken draws against their future pay as far back as 2005. During a meeting with the fair's board on Monday, Commissioner Dan Green said they may need to move the meeting, scheduled for Nov. 21, to a larger room given the public interest and the fact that the entirety of the fair board could be in attendance.

"The board, as far as I know, has had no input on the findings or direction," Green said at the meeting, which was also attended by Commissioner David Stewart. "We are waiting for them to finish the job and come up with the report."

Although a county memo stated it appeared most of the financial controls at the fair were in order, Brannon said there were "smaller-scope" issues that concerned him and warranted the request for a thorough look at the books. Former fair manager Dane Dugan, who resigned Sept. 1, is noted as having taken 16 advance pay draws since 2012.

Other financial data and oversight red flags also surfaced in the internal audit.

"We're looking forward to getting over that bridge," Jerry Johnson, fair board chairman, said at the meeting. "I'm sure there will be a lot of recommendations. But, a lot of the stuff they were happy with as far as the measures we've taken and what's going on."

Although Johnson expressed his concern with the use of the term "forensic audit" when commissioners deliberated on approving the closer look at the fair's books in Sept. because he felt it insinuated criminal activity, the fair board chairman welcomed the process. After asking for clarification from commissioners as to whether the meeting would be public, Johnson said Eidy Bailly seems very accommodating.

"They've interviewed several members of the staff and asked for additional information," Johnson added. "We are anxious to see (the draft findings)."

The public meeting has been scheduled from 2:30 to 4 p.m. on Nov. 21, and will take place in the Kootenai County Administration Building, located at 451 Government Way in Coeur d'Alene.

"It might be an interesting day," Green said. "It's an exciting day."