Oskaloosa.com

CNHI/Southeast Iowa

August 15, 2012

CVP&D attorney says board members support charges

CENTERVILLE — The attorney for the Chariton Valley Planning & Development Council of Government says funneling questions through her office is an effort to keep information straight, not duck questions.

In July, the state auditor's office released a report that concluded there was significant financial mismanagement by Tracy Daugherty, the former executive director. Shannon Woods, a Bloomfield attorney representing the council, said having questions concerning CVP&D go through her was to make sure the answers remained consistent.

"I just informed [the board] that if anybody has specific questions, the best answer to give is to call me," Woods said. "So that I can make sure that it gets answered consistent with the release from the auditor of the state of Iowa."

Woods said deferring questions about CVP&D to her is not an effort by the board to avoid scrutiny or not cooperate.

"They have me and that's my job and it's just easier if I answer all the questions so that it's consistent," Woods said, noting she has been CVP&D's attorney for more than one year and advises them on personnel, policy and other legal issues. "So it isn't something where they came and retained me just for purposes of this audit."

Woods said part of the audit was critical of the board charged with oversight. Yet, she said, the audit failed to show corrective actions the board took in August of 2010 to prevent a repeat performance, like adopt new policies, regulations and obtain outside payroll and accounts receivable assistance "to ensure there's definitely checks and balances in place now," Woods said.

"And they've made huge strides in terms of making sure that a director isn't able to put the board in this position again," Woods said. "The biggest criticism, I think, of the board, was that they trusted Daugherty too much. And you would want to believe to trust your director, but unfortunately that was not the case."

Woods said no one with CVP&D or board members have been contacted by law enforcement. Yet board members have indicated to her they want to proceed with criminal charges against Daugherty.

"I know collectively as a board they have expressed their support to the Appanoose County attorney to proceed with criminal charges against Ms. Daugherty," Woods said. "But my understanding is, that likely, is not going to take place. My understanding is that he did not feel that was something that would be worth pursuing."

Two telephone calls to Richard Scott, Appanoose County attorney's office, were not answered and messages left have not been returned.

Woods said the board's decision to support criminal charges being filed is one way they would be able to recover some of the money from Daugherty through restitution. Woods said some of the government agencies that granted money to CVP&D might want some of it back based on the appearance of financial mismanagement.

Other than criminal restitution, the board could pursue civil action against Daugherty for alleged theft, something Woods said the board has not given much thought.

"Primarily because that would be a backup option to the county attorney deciding to bring criminal charges," Woods said. "But, ideally, we'd like to see the state move forward and prosecute her for the theft."

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