LOCK HAVEN — The Clinton County Economic Partnership is offering clarification regarding the audit being completed by the Clinton County Auditors.

A partially completed audit was released in October 2025, which cited multiple concerns by county auditors Michelle Crowell, Jackie Anastos and Cathy Gedon. The audit is conducted annually on the TPA finances.

The biggest concern at the time from the auditors involved checks for the Hotel Tax Funding — which is allocated to the county’s tourism promotion agency — which were being sent to the CCEP rather than the Clinton County Tourism Promotion Agency. The auditors cited that in roughly the last 10 years, checks had been written to the CCTPA.

In December, the Clinton County Commissioners — through advice from their Solicitor Justin Houser — updated the terminology in its Hotel Tax Ordinance to reflect the CCEP as the official tourism promotion agency for the county.

Houser told the commissioners at the time that the partnership was designated as the county’s tourism promotion agency on March 18, 1995, prior to the creation of the Hotel Tax, Act 18.

He said in 1978, a tourist promotion agency was created to collect funds from that law and later in 1995, the partnership was designated as the TPA under the law.

“Admittedly, confusion was created by disbursement of hotel taxes to the CCEP by checks payable to Clinton County Tourist Promotion Agency until this was corrected in 2024 by the County at the instruction of the County Solicitor,” a release from the CCEP, submitted to The Express, said.

This clarification was one step the CCEP took to help correct the issues flagged in the audit, which is still not completed.

Representatives of the CCEP reached out to The Express to offer further answers on other issues.

The release, provided to The Express this week, included explanations for errors related to issues surrounding record keeping, procedure, overhead and reimbursements, which representatives say were shared with the auditors.

In the release, the CCEP notes that the statements made in relation to the auditors were “incomplete and misleading” and, since The Express published its first article regarding the audit, CCEP representatives have provided information to the auditors.

“Since that date, representatives of the CCEP have met on multiple occasions with the Clinton County Auditors to publicly correct their prior incomplete and misleading statements,” the release stated.

RECORD-KEEPING

In the audit report shared in October, auditors claimed there were missing or inaccurate monthly reconciliation reports and mismatched ending balances, along with missing documentation between January and April 2025. The report also found incomplete preservation records in official binders.

The CCEP’s release stated these alleged record-keeping deficiencies referenced “minor clerical issues that were corrected in QuickBooks within minutes.”

“These issues arose during the transition between bookkeepers and were promptly resolved,” the release said. It further notes that safeguards have since been implemented to prevent it recurring.

CCEP representatives who met with The Express noted these minor issues arose due to a transition of its bookkeeper. It was noted the original bookkeeper returned to the role after 11 months.

PROCEDURAL

IRREGULARITIES

The initial in-progress audit reported that payments to an employee for compensated time was inconsistent with standard policy.

It also questioned irregularities surrounding a $14,000 discrepancy. According to the audit, the discrepancy was noted in a fourth-quarter payment.

“Claims of procedural irregularities were also fully addressed in documentation provided to the auditors,” the release from the CCEP said.

It was noted a former employee had granted compensatory time to another employee who had worked an excess of 40 hours in a week.

“The Fair Labor Standards Act requires private sector employers to pay overtime for hours worked in a week in excess of forty at the rate of time and a half. Only government agency employers can grant compensatory time instead of paying time and a half for overtime hours,” the release said. “This error was identified by the interim CEO and immediately corrected, with the employee being paid all wages to which she was entitled.”

The partnership also addressed other procedural allegations and alleged conflict of interest referenced in the audit.

The audit noted “a private contractor, retained to perform bookkeeping services in January of 2025, for both the TPA and CCEP, also has a leadership connection to one of the organizations.”

The auditors alleged this was a direct conflict of interest.

The CCEP alleges the auditors disregarded the facts and governing documents when coming to this conclusion.

“When the CCEP bookkeeper resigned, the organization implemented a temporary solution to maintain financial operations. The CCEP bylaws provide that the organization shall be operated in accordance with the most recent revision of Roberts Rules of Order,” the release said. “The current revision of Roberts Rules provides at Section 45:4 that ‘No member should vote on a question in which he has a direct personal or pecuniary interest not common to other members of the organization.'”

The alleged conflict of interest was in relation to the CCEP Board Chair Dave Harger. The bookkeeper Harger utilizes for his personal business took on the role from the previous one when they left. They remained in the role for 11 months before the previous bookkeeper returned.

CCEP representatives noted Harger, per Roberts Rules of Order, only serves as a tie vote for motions and did not vote to utilize a new bookkeeper.

“(Harger) did not vote on retaining a business in which he has an ownership interest and fully disclosed his conflict of interest to the Operating Board of the CCEP before the board approved the arrangement,” the release said. “This temporary arrangement ended with the former bookkeeper returning after multiple unsuccessful attempts to secure bookkeeping services from other outside firms.”

The CCEP further alleges the auditors “did not request to review the CCEP bylaws or minutes of the meeting at which the temporary bookkeeping arrangement was approved.”

OVERHEAD,

REIMBURSEMENT CLAIMS

The auditors’ report stated there was an increase of overhead fees paid to the partnership of 71.4 percent, with fees increasing from $58,352 per year to $100,000 in the fiscal time period.

The CCEP’s release stated they provided documentation to explain this increase.

It said Harger, who was serving as interim CEO at the time the decision was made, “identified that operating costs had risen substantially over time, while the reimbursement model had remained unchanged for years.”

“Adjustments were made to adjust the contribution of tourist promotion funds to overhead expenses to be consistent with the CCEP’s actual current operating costs for tourist promotion, which exceed $100,000 annually. This was an overdue correction, not an escalation of spending,” the release said.

In conclusion, the CCEP and its board was looking to “set the record straight” regarding the allegations leveled against them by the auditors.

It further stated it has met with the auditors and presented the requested information and is still waiting for a completed audit. They further alleged the release of an incomplete audit report, like the one shared on the county’s website in October, was “unprecedented.”

“The CCEP has served as the county’s officially recognized tourist promotion agency since 1995. For nearly three decades, the CCEP has advanced economic development, supported local businesses, attracted major employers, developed business parks and promoted tourism throughout Clinton County,” the release said. “The hotels operating in Clinton County exist as a direct result of economic development initiatives led by CCEP. Tourism promotion and economic development are not separate functions; they are inseparable. Without business growth, tourism cannot thrive.”

The CCEP release stated it is committed to “transparency, accountability and its mission to serve the people and businesses of Clinton County.”

The CCEP plans to release a full statement regarding the audit on its website as early as Monday. You can view the statement by visiting www.clintoncountyinfo.com.