LOUISVILLE, KY. (WDRB) -- A state audit report criticizes the Jefferson County Clerk's Office for poor record keeping, commingling private and public monies and giving employees illegal bonuses.

Part of the audit is critical of Jefferson County Clerk Bobbie Holsclaw's office for its financial ties to a non-profit corporation that promotes voter registration.

Holsclaw did not mince her words when talking about State Auditor Adam Edelen.

"I will not allow his ambition to run over this office and what these employees and I have built in this community," Holsclaw said. "If he's going to do this with one office, he needs to do it with everything."

State Auditor Adam Edelen's report says the clerk's office used its official credit cards to make purchases for Voter Outreach, Inc.  The nonprofit then reimbursed the clerk's office. 

The report says some of those purchases were for items such as laptop computers and food that the clerk's office is not allowed to make.  It also says some of the businesses that donated supplies or prizes regularly do business with the clerk's office, "causing an appearance of impropriety and potential conflicts of interest."

The audit recommends separating the official business of the Jefferson Co. Clerk's Office from Voter Outreach. Jefferson County Clerk Bobbie Holsclaw responded that voter registration is an important duty of the Clerk's Office, and that, "The Attorney General has approved use of public funds for donation to charities that also received private donation for support of voter education."  She also said the Clerk's Office will "follow whatever changes in procedure that the Auditor suggests."

The audit also expressed concern about an Employee Charitable Fund which collects money from employees who pay $1 to dress down on some Fridays, as well as money from the sale of "Support Our Troops" yard signs donations for the Crusade for Children collected from both employees and the public.

It says "very little" documentation was kept for deposits and activity in that account, and state law does not allow such an account.

Holsclaw responds to those concerns by saying the State Auditor's Office has approved such donations for the past 20 years as long as the time employees spent on them was not excessive.

The audit says these matters are being referred to the Louisville/Jefferson County Ethics Commission and the Jefferson County Attorney to see if they want to investigate further.

The audit also addressed $99,200 in Christmas gifts to employees, saying employees were given a 2 percent raise and a $400 Christmas gift.  The audit characterizes the $400 as a bonus, which is not allowed in Kentucky's Constitution, and recommended not paying them in the future.

Holzclaw says the raises and the $400 were to provide "incentive for good work and to motivate employees."  She said the Clerk's office would refer to the bonus as "incentive pay" from now on.

To view the full auditor's report, click here.

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