Boyd county settles with former clerk

By CARRIE KIRSCHNER
The Independent

CATLETTSBURG July 22, 2008 11:29 pm

— The BoydCounty Fiscal Court has approved settling a lawsuit with former Clerk Doris Stephens Hollan by forgiving funds owed to the county.
The dispute, which has been ongoing for months, centered on an audit of Hollan’s office released last December that determined she had underpaid the county more than $60,000 in excess fees.
On Tuesday, the court unanimously agreed to sign an agreed order to end the dispute.
County Attorney Phillip Hedrick reiterated Tuesday, as he has throughout the entire dispute, the court never suspected Hollan of any wrongdoing but was required by statute to file suit to seek repayment of the funds.
Hedrick said under the agreement the court will forgive the fees, and each party will be responsible for their own legal fees.
The agreed order confirms the payment to the county was not made by Hollan because expenditures in the office outpaced revenues and the funds were instead used to make required matching payments to employee’s retirement and social security.
According to the order, Hollan’s inability to pay was a direct result of her continuing to make those the required contributions as opposed to the Sheriff’s Office, whose contributions were picked up by the Fiscal Court. Both offices are fee-based offices and Hollan said she approached the then judge-executive about making similar payments for her but was denied.
Hollan’s attorney, David Welch, said the order has been signed by Hollan and is expected to be submitted to Circuit Judge C. David Hagerman this week.
Welch said his client is pleased with the settlement and is glad to put the issue behind her. Hollan retired as clerk in 2006.
“Mrs. Hollan is pleased with the result, which confirms that all her expenditures were proper and necessary to provide the employees in her office with matching payments for pensions and FICA payments for salaries,” Welch said. “She had fully explained this matter to the auditor who failed to note that in the audit.”
CARRIE KIRSCHNER can be reached at ckirschner@dailyindependent.com or (606) 326-2653.