Audit cites weaknesses in Waukesha County clerk operations

Kathy Nickolaus

Waukesha - A number of weaknesses were found in Waukesha County Clerk Kathy Nickolaus' office operations, according to a newly released audit report, including the failure to return about $27,000 in dog license fees owed municipalities that has accumulated over several years.

In response to the audit, Nickolaus said she's already instituted a number of recommended changes.

The county's internal audit manager, Lori Schubert, and Nickolaus will discuss the findings at the County Board's Executive Committee meeting at 9 a.m. Monday.

None of the nine recommendations contained in the audit report was ranked as most critical in importance, but nearly all were described as having a significant impact on efficiency and effectiveness.

The audit did not examine most of Nickolaus' election systems and duties, which were audited in the fall of 2010. In April, Nickolaus' failure to count 14,000 votes from Brookfield in unofficial election night returns - or to tell the public about it for nearly two days - temporarily tipped the apparent Supreme Court election outcome and led to a costly and time-consuming statewide recount.

A special investigator for the state Government Accountability Board issued a report critical of Nickolaus' performance. He said her election night vote reporting was inadequate and probably violated state law, but she didn't intend to break the law. No charges were issued, but the board instructed her to make changes.

Nickolaus, first elected county clerk in 2002 after winning a GOP primary, has announced she will run again this fall. She already has Republican and Democratic opponents. She earns $69,143.

The new audit reviewed how Nickolaus bills municipal clerks for certain election expenses - about $70,303 in 2010 and $52,760 in 2011. It concluded that she needs to streamline and simplify the process, which now includes both automated and manual procedures and a significant amount of duplication. Nickolaus said she has asked the Finance Department for help to achieve that.

The audit also examined Nickolaus' other duties, including issuance of marriage and domestic partnership licenses; distribution of dog licenses and supplies to municipalities; posting and filing agendas and minutes of County Board meetings; and accepting passport applications and forwarding them to the U.S. State Department.

Schubert found that the clerk allowed a shared login to her marriage license database, in violation of county security policy. Nickolaus said the practice has been corrected.

The audit made several recommendations on her dog licensing responsibilities. According to state law, she buys dog tags and related supplies and distributes them to municipalities for sale to their residents. The local communities report back on tags sold and revenue collected and return all unsold tags to the county clerk. Nickolaus is responsible for divvying up the revenue - 5% to the state, $1 per license to the county for rabies control and $2 for animal control. The rest is returned to municipalities.

The audit found errors and shortcomings in how office staff reconciled accounts and listed expenses.

As a result of those weaknesses, "the balance sheet account has been allowed to accumulate over $27,000 in funds which appear to be owed to municipalities," Shubert reported.

Nickolaus said she would refund the necessary funds and has made changes in the record keeping.

Full report at JSOnline