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SUMMARY
In November 2002, the Arizona Attorney General’s Office
requested that the Office of the Auditor General investigate allegations of
financial misconduct by Mr. Gary McPherran, CPA, former administrative services
director, and Mr. Gary Murray, former accountant for the City of Sierra Vista.
Our Office conducted an investigation and submitted our report to the Attorney
General’s Office. The Attorney General has taken criminal action against Mr.
McPherran and Mr. Murray. Both individuals have been indicted on felony charges.
See Conclusion on page 13.
Our investigation revealed that from August 1999 to August
2002, Mr. McPherran and Mr. Murray may have embezzled at least $25,990 and
$21,277, respectively. These former employees used city money to pay for their
personal travel expenses in places like Arizona, California, and Nevada, as well
as other personal purchases including concert tickets, alcohol, and cigarettes.
The City’s internal controls over travel, petty cash, and
credit card activities were inadequate, primarily because those controls did not
prevent Mr. McPherran and Mr. Murray from initiating, approving, and reconciling
those types of activities. As a result, Mr. McPherran and Mr. Murray were able
to embezzle city monies for at least 3 years, and the City was unable to deter
or detect their thefts.
Read full report in Acrobat PDF format
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