State Historical Society revenues questioned

BOISE – Auditors found “internal control issues” with the Idaho State Historical Society’s accounting procedures and questioned how the Old Penitentiary and state history museum in Boise generated only $90,000 in admissions revenue in each of the last three years despite a fee increase.

Legislative Services auditors also want the state Board of Education, which appoints Historical Society trustees, to scrutinize all travel and state credit card records of society Director Steve Guerber after a sample of his expense reporting since 2002 turned up $700 in overpayments to him.

The historical museum sees 170,000 visitors annually, with paid admission fees of $2 for adults and $1 for children. The old prison, also with thousands of visitors, charges $5 for adults, up from $4 since 2004.

Auditors said they don’t understand why the sites produce so little revenue.

“It is not possible to determine the amount of fees that should be reported,” according to auditors Randy Rhumann and Brian Butkus. “Employees can make adjustments to cash register tapes and also have custody of the cash. Therefore, employees can void receipts and misappropriate funds.”

On Monday, Guerber acknowledged problems within his agency’s fiscal office and said he has worked to address them, including hiring a consultant to boost due-diligence efforts. He also is training cash-handlers at the old prison and museum to ease fears that admission receipts may not be finding their way into state coffers.

“A lot of the patrons aren’t paying,” Guerber said, citing special events for children or museum members that add to attendance but not revenue. “We have found nothing that would indicate overages or shortages in absolute balances at either the Old Pen or the museum.”

In the report released Friday, auditors who reviewed 10 of Guerber’s 55 total travel vouchers and monthly state credit card transaction summaries in the last four years found about $700 in overpayments to him.

“This amount does not include potential overpayments for travel that may not be related to state business,” the auditors wrote.

Guerber said the employee at the Historical Society responsible for examining his travel vouchers and state credit card purchases in that period is no longer at the agency. “One of the reasons was we were having problems with her accuracy,” he said.

Guerber said he has returned more than $600 and said he welcomes Education Board scrutiny of the remaining 45 travel vouchers and state credit card transactions to boost confidence in his agency’s accounting controls.

“It was some sloppy work on the part of our fiscal office accounting,” Guerber said. “Of course, I’m the one who is ultimately accountable, even though you rely on other people.”

Luci Willits, an Education Board spokeswoman, said agency staff will review Guerber’s travel expenses.

Ray Ineck, manager of the Legislative Services audits division, told the Associated Press that auditors will issue a follow-up report in November on the adequacy of the Historical Society’s attempts to remedy the concerns.

The audit unearthed mistakes, not malfeasance, Guerber said.

“If I had been trying to game the system, I probably wouldn’t have come out of a situation where we’re dealing with (about $700) over a three-year period,” Guerber said. “If you’re going to risk the credibility of an agency – and of yourself – this doesn’t seem a logical way to go about it.”