Audit: Arpaio spending violated county policy

The Maricopa County Sheriff's Office did not comply with county procurement policies or spending guidelines when it spent $456,000 during a spending freeze for a custom-made bus for moving inmates, according to a recently issued special audit.

Now the sheriff's office and the Maricopa County Board of Supervisors, which has refused to approve the bus' title and registration, must come to an agreement on what to do with it.

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The county's audit department suggests the sheriff's office sell the bus, purchased in October 2008, while the sheriff's office wants the board to put it into operation.

Lisa Allen, sheriff's office spokeswoman, said the sheriff's office could take on the cost of licensing and insuring the bus itself.

"We followed procurement code, we did nothing malicious, we did nothing intentionally to try to aggravate them," Allen said.

Richard de Uriarte, the county's communications office manager, said the audit speaks for itself.

"As far as future options, our legal staff will analyze the issues raised in the report. I can't speculate right now on what the board members might do after that analysis is completed and they have been briefed," de Uriarte said.

The bus has been parked since May at a county facility in southwest Phoenix.

Sheriff Joe Arpaio has contended that the board refused to approve the bus in June as payback for his investigation of Supervisor Don Stapley, who was accused in a December 2008 indictment of not disclosing financial information he was required to as an elected official. That case has since been dismissed by the prosecutor, and the sheriff's office has opened a second investigation of Stapley alleging fraud and theft in connection with campaign funds.

The county imposed a spending freeze for all major purchases in July 2008 for all judicial branches, elected offices and appointed departments.

The board is responsible for the county's $2.2 billion budget and allocates money to the various departments, expecting them to live within their means.

The board, however, cannot dictate how other elected officials spend their money.

The money for the bus came from the Jail Enhancement Fund, which comes from court fees and allows sheriffs throughout Arizona to spend at their discretion on their jails.

Arpaio wrote in a response to the audit that the board and county management have no say on what can be purchased with the funds and they aren't subject to the capital purchasing freeze or the usual county-wide procurement procedures.

"The purchase of the MCI bus was not made maliciously or as an attempt to usurp the policies of the Board of Supervisors," Arpaio wrote. "The purchase was a business decision to get critical equipment quickly."

Allen said the sheriff's office has never had any problems making purchases with the jail funds, including a $250,000 purchase for a fence.

The audit stated that the sheriff's office did not get prior approval from the board for the bus purchase or approval from the Office of Management and Budget for an exemption to the spending freeze, both of which are required.

MCSO also failed to get board approval to buy without getting sealed bids.

"There is no evidence that the bus was acquired for the best price, or that procurement controls meant to protect and account for public funds were followed," the audit states.