The Daily Alaska empire., 1949-06-11
HALEY AUDIT
 SHOWS L055
 OF S1o,ooo
Veterans Board Takes Ae lion on Disclosure of <
 Irregularities

Certain acts and omissions on. the part of Norman Haley, former Ter ritorial Commissioner of Veterans Affairs, will allegedly result in loss es to the office in amounts ex- ceeding $10,000, through failure to perform faithfully his duties and Tor the mishandling of funds entrusted to him.
 The irregularities were disclosed through the special audit by Arthur Andersen Company which was re- ceived by the Alaska World War II Veterans Board at it's special meet ing this week. A
 Formal notice has been given the Maryland Casualty Company. which bonded Haley in the amount of s5O,- 900, that the office contemplates action to recover such losses as were incurred in violation of the terms of the bond.
 Irregularities
 Board Chairman John s. Helen thai of Anchorage also notified At torney General J. Gerald Williams of the irregularities, pointing out the series of Clover Club loans.
 He enclosed copies of the financial statements as of January 31, l949, and the Chronological Analysis of Facts" to be used for such action, including civil or criminal legal pro- cedure, as deemed best in the in- terest of the Territory. Neither the Board nor the auditors made any specific recommendations
 Attorney General Williams has re- ceived the letter of yesterdays date, but has had no opportunity to give the reports thorough study.
 Haley resigned February at the insistence of the Legislature after investigation by a special commit tee.
 Two Reports
 Contents of the two reports will be published in matter of days, according to Chairman Hellenthal, who offered them for inspection today. As only two copies were received, and one set went to the Attorney Generals office, it is necessary to have more copies run off.
 The Veterans Board opened it's special session Thursday night, all though not scheduled to convene until yesterday Members worked until midnight last night, and were at it again today in the Senate Chambers.
 They have studied the financial statement and recommendations of the auditors for accounting proceed ures, most of which had been adop- ed early this year when the special audit was begun.
 The board has reviewed veterans loans and spent much time on es- tablishing policies. One matter of policy. for instance, was that of different type of bonding for em- ployees. All staff members are under bond. but the Board hopes to be able to put them under blanket bond as it would mean substantial sav- ing to the Territory.
 Other policies pertain to such matters as repossessed properties, overpayments previously made from sales tax reserves which, members believe, should be made from gen. eral funds.
 Today, they were discussing the time for the regular annual audit, the fiscal year having been put on a calendar year basis.
 The next quarterly meeting of the Veterans Board will be some time. between September l5 and 30, in Juneau.
 Roland H. Brousseau hoped to be on today's early afternoon flight, returning to Nome. Other mem- bers who will be on their way home this weekend are Chairman Hellenthal, Mayor Robert Ellis of Ketchikan and Paul M. Solka, Fair banks newspaperman.
 L. Embert Demmert of Craig was