NORTH PLATTE, Neb. (AP) — The Lincoln County Board of Commissioners has completed the process to remove the county treasurer for committing what the board called “misconduct in office,” after auditors said she accumulated a backlog of millions of dollars’ worth of unbanked property tax checks.
The board voted 5-0 on Monday after hours of testimony to declare that Lorie Koertner had neglected her legal duties. Board members said the action was legally required to complete its May 13 decision to end Koertner’s tenure. She took office in January after running unopposed in November.
The state auditor’s office released a report Monday that recounted a backlog of unfinished reports, unbalanced bank accounts and undeposited property tax checks, but didn’t report evidence of any criminal wrongdoing. Audit staff members found 363 undeposited checks totaling nearly $6.14 million around the treasurer’s office when they arrived two days after Koertner’s dismissal, the report said.
The auditors said the treasurer didn’t maintain an accurate or complete check register, failed to record 22 deposits from the state and local governments totaling just over $1.07 million and didn’t correctly distribute money from the state’s Property Tax Credit Fund to local governments to make up for credits due to county taxpayers. Some local government funds received more than they were due and others less.
The office also didn’t distribute money from fines and licenses in a timely manner, the auditor report said.
The failures constituted “misconduct in office” by Koertner, the county board declared.
She testified that she would serve as treasurer again if county officials “would let me do my job.” She had clashed with board chairman Joe Hewgley and others over her decision to combine real estate and motor vehicle employees in the latter’s courthouse space.
She was Webster County treasurer for five years before moving to North Platte.
Koertner acknowledged Monday that she was unaware of several state laws governing deadlines for tax payments to local governments and other bookkeeping requirements.