State audit finds Perry County Clerk report misstated, flags control weaknesses

Perry County Clerk Wayne Napier must tighten his office’s controls after state auditors said a fourth-quarter report sent to Frankfort was materially wrong, overstating receipts by $133,915 and excess fees by $330,086 while understating disbursements by $283,498.

State Auditor Allison Ball’s office released the audit of Napier’s 2024 financial statement and gave it an unmodified opinion under Kentucky’s regulatory-basis rules, which all 120 county clerk audits in the state use. But the same report also gave the statement an adverse opinion under U.S. generally accepted accounting principles, meaning the numbers would not be considered fairly presented under the broader accounting standard most people would recognize.

The biggest problem was the quarterly report filed with the Department for Local Government. Auditors said the report left out $223,497 in tangible personal property tax payments and a $60,000 repayment of state advancement money, while also counting $134,521 in state grant receipts as if it were excess-fee money. In plain terms, the clerk’s office told state officials the office had more money available than it actually did and also failed to report some outflows, creating a distorted picture of the office’s finances.

The audit did not say taxpayer money disappeared, but it did say the wrong figures were reported to state officials and could affect what Perry County and local taxing districts believe the office collected and owed. Napier’s office said additional training had already been received and that changes would be implemented immediately.

Auditors also flagged a separate internal-control problem: one employee receives cash, posts revenue and disbursements, and completes monthly bank reconciliations, with the clerk overseeing the work instead of dividing those duties among several people. Napier told auditors he could not hire more staff because of budget limits, but the report said that arrangement increases the risk of inaccurate reporting and weakens accountability.

The findings land at a public office in Hazard that handles far more than ledger entries. The Perry County Clerk’s Office processes vehicle registration renewals, land records, marriage licenses and voter-related functions, so the accuracy of its fee and tax reporting reaches well beyond bookkeeping. The report was also sent to Perry County Judge/Executive Scott Alexander, underscoring that the issue sits squarely in county-government oversight, not just inside the clerk’s desk.