State has probed agency in past

State auditors questioned some fiscal practices as far back as 1996.
& lt;a href=mailto:leigh@vindy.com & gt;By NORMAN LEIGH & lt;/a & gt;
VINDICATOR SALEM BUREAU
LISBON -- Scrutiny of Columbiana County Health Department spending is nothing new.
In the late 1990s, the state health department and state auditor's office probed certain expenditures, including credit-card use and money spent for travel and other questionable items.
Those same areas are being examined again as part of a criminal investigation ordered Sunday by county Prosecutor Robert Herron in response to a Vindicator story detailing health Commissioner Robert Morehead's 2003 spending.
Herron is also asking state auditors to review the department's records in recent years. But questionable spending dates back further.
1999 state audit
In March 1999, a state audit said about $335 in credit-card cash advances were made in 1996 without supporting documentation.
The state audit issued a finding against Morehead, demanding that he pay back the money.
At the time, Morehead said the $335 was for overnight trips made on the department's behalf in 1996. He acknowledged that receipts were not attached for the spending because the department was unaware they were required.
State auditors also said in 1999 that the health department should deposit all the money it collects directly to the county treasurer daily instead of maintaining a separate checking account.
Auditors also criticized the agency for mixing federal grants with other funds.
In April 1998, the state health department alleged that the county agency made about $163,000 in improper expenditures while operating a program aimed at reducing lead-paint hazards.
The county health department failed to properly document costs charged to the program for personnel, equipment and supplies, the state said.
Improper charges
Health department officials wrongly charged the lead program for gasoline and maintenance on a leased car, the state said. It also alleged that travel expenses claimed by the county were higher than those allowed by the state.
State officials at the time discontinued the agency's involvement in the lead program. It also demanded repayment of the money it says was misspent, though, after a review, it reduced the demand to $104,000.
In June 1999, the health board disputed the amount, saying it was too high. A deal eventually was struck in which the county was ordered to repay $72,500 of the original $163,000 claim.
In 1997, Morehead said his agency had learned from mistakes highlighted in a state audit that resulted in a nearly $2,000 finding against the agency.
State auditors had determined that the department paid money without having supporting documents such as invoices or receipts.
As a result, the health department eliminated a petty cash fund.
Also in 1997, the state auditor's office suggested the health department improve its record-keeping to provide better accountability for use of public funds.
Latest questions
More recently, The Vindicator's review of 2003 health department spending showed that Morehead repeatedly used a county-issued Visa credit card for hundreds of dollars in personal buys for items such as novels, golf accessories and Christmas gifts.
Morehead has insisted he repaid at least some of the money but offered little proof.
He said he no longer will use the Visa for personal buys, even with intent to repay.
Morehead said he also will begin submitting itemized receipts for travel-related expenses.