COEUR d'ALENE — Kootenai County Commissioners nearly made an impromptu decision Thursday on whether to move forward with a forensic audit of the Kootenai County fairground’s finances.

Near the end of a one-hour meeting scheduled to be a fair board update, the commissioners began deliberating and positioning themselves to vote on the matter.

After Marc Eberlein said he opposed the audit and David Stewart made a motion in favor, an observer in the capacity-filled board room reminded the commissioners — before Dan Green weighed in — that making a decision on the audit wasn't on the meeting agenda.

The commissioners then pulled back and placed it on the agenda for Monday’s debriefing meeting.

There may not have been a decision, but there was a lengthy and sometimes contentious dialogue about the potential forensic audit proposed by Kootenai County Clerk Jim Brannon, who came to the meeting as an observer.

There was also discussion about the recent resignation of fair manager Dane Dugan, which was effective Sept. 1.

“It’s disappointing to see Dane leaving at this time when you (the fair board) have this cloud hanging over you, and you guys went to bat for him,” Green said.

Suzanne Metzger, a CPA and member of the fair board’s finance committee, defended Dugan.

“Dane hadn’t done anything different than his predecessors. So to sit there and lock it down to the fair manager — good, bad or indifferent — is a little misleading,” Metzger said.

Clerk Brannon’s recommendation for a forensic audit followed an internal audit performed by his office, which revealed some fairgrounds employees had taken draws against their future pay since 2005. Dugan is noted as having taken 16 advance pay draws since 2012. Other financial data and oversight red flags surfaced. Despite the areas of concern, a county memo noted it appeared most financial controls related to the fair were in order.

A subsequent third-party audit by Magnuson, McHugh and Co. was closed prior to completion. Metzger said Brannon's recommendation suspended the third-party audit.

"When the word forensic is used, it's like an emergency brake at 60 mph," Metzger said during Thursday’s meeting.

Fair board Chairman Gerald Johnson made it clear the word “forensic” is the biggest hangup he and the fair board have with another audit. He said it essentially accuses them of potential criminal activity.

Brannon disagreed.

"No one has accused anyone, and I find Mr. Johnson's comments offensive," Brannon said. "We are not accusing anyone. A forensic audit will allow that information if things have been compromised to be utilized in court. Nobody has made an accusation, and I find that quite offensive."

Brannon noted when the internal auditors initially checked out the fairgrounds, they saw concerning issues on a smaller scope, recommending the forensic audit for a more thorough look at the books.

Like many others in the room, Brannon wanted a decision to be made by the commissioners immediately.

"You, as a board of county commissioners, engaged the clerk and our audit team to look into things. We have made a recommendation to you under my guidance for our internal audit committee. If you choose to delay or to ignore that recommendation, that is certainly (your decision)," Brannon said. "We will help as we can, but let's stop this, and stop going around in circles like when we found cash flow issues and brought it to your attention. Let's stop it. Either do it or don't."

Stewart likened having someone connected with the fair do a fair finance audit as the "cat watching the cat", and agreed with Brannon that a wider scope of the fair's finances is warranted. Eberlein wasn't against a deeper look, but was against the forensic approach.

"Rather than dropping a nuke, I suggest we do this peacefully without a forensic audit and come in a for a deeper dive," Eberlein said. "We have two CPAs that are working with the fair board, and if the Clerk’s office works with the fair board, I don't think anyone is trying to cause damage."

Commissioner Dan Green asked Kootenai County Treasurer Steve Matheson, a former auditor, his opinion on that matter.

"Personally, I think we take out the word forensic and go in and do additional work; that would be the avenue that is acceptable for everybody," Matheson said.