HAMILTON (AP) — The Ravalli County treasurer’s office was in disarray and the appointed treasurer was not fulfilling her duties, but an audit found no evidence of fraud.

County Attorney Bill Fulbright on Tuesday released the results of an audit completed by the Anderson Zurmuehlen & Co. accounting firm. County commissioners are scheduled to meet Friday to discuss the report and “consider possible action on the status” of treasurer Valerie Stamey, who has been on paid leave since January, Fulbright said.

The audit recommended several internal controls be established and that written policy and procedures be set up for the treasurer’s office.

Stamey was appointed in September and placed on leave in January after failing to make nearly $1 million in deposits, failing to disburse money to the state and county agencies and failing to make monthly and year-end reports. She also did not respond to the commissioners’ request to explain a civil default judgment in South Carolina that alleged she cashed an $18,149 check twice.

After being placed on leave, Stamey accused current and former treasurer’s office employees of wrongdoing and fraud, saying the books were a mess when she took over, that files were missing and that the treasurer’s office had allowed tax liens to be sold illegally.

The accusations led to an investigation by retired District Judge Nels Swandal, an audit by Anderson Zurmuehlen and an FBI investigation.

In April, Swandal said he found personal dissatisfaction and conflict among employees in the treasurer’s office, but no criminal conduct.

Days later, the county attorney recommended commissioners wait for the full audit results before making a decision on Stamey’s employment status and a lawsuit the county filed against her in March seeking $29,000 for failing to file the required reports.

“I recognize that the last four months have been a frustrating wait for many, but the disarray in which the books were found necessitated the time spent,” Fulbright said in a statement Tuesday.  

Stamey sought re-election to the post, but she received just 4.3 percent of the vote in the June 3 primary.

The next day, Bitterroot Valley Bank filed foreclosure documents against Valerie Stamey and her husband, Richard. Court records say the couple had defaulted on their mortgage and owed over $183,000 in principal, interest and late fees.

The Ravalli Republic reported the bank is asking that the property be sold to satisfy the loan.