Auditor Calls for Probe Into Sheriff’s Funds : Expenses: A sweeping review is called for to examine the sheriff’s spending of money seized by his office during drug raids.

San Diego County’s acting auditor-controller called Tuesday for a sweeping review of $3.76 million in drug funds and informant expenses that Sheriff Jim Roache’s office has spent for a variety of purposes since his term began in 1991.

The call came in response to a story Saturday in The Times that disclosed Roache’s misspending of nearly $13,000 of a special sheriff’s fund normally used to purchase evidence and pay informants.

Among other items, Undersheriff Jay LaSuer authorized $3,000 from the special fund for two oak wall cabinets and $950 for a new glass top for Roache’s desk. Following The Times’ request to see documentation of the spending, Roache conceded that he had misspent $12,800 in special fund expenses and promised to repay the bills through another account and replenish the special fund.

Acting Auditor-Controller William J. Kelly said Tuesday he would review not only the $212,863 in the special fund, but also $3.55 million spent out of funds seized in drug raids, called the sheriff’s asset forfeiture fund.

“There’s been some new attention brought to the account,” he said. “So we’ve stepped up our regular audit for a thorough review.”

Specifically, Kelly said, he would review a sheriff’s letter that describes the precise amount of money to be used from drug funds to open and refurbish his new headquarters in Kearny Mesa. The Board of Supervisors approved the expenditure, Kelly said, with the provision that the sheriff buy only what was authorized.

“I want to know what was charged to that account and whether it matches up with what was approved by the Board of Supervisors,” Kelly said. “I’ll be looking at purchase orders, contracts and general claims against those accounts.”

Roache has spent $170,224 of drug funds on the headquarters, according to records provided by the department.

Kelly said he would review a $463,268 expenditure for two UH-1E “Huey” helicopters from Charles E. Otterman, who liquidated his Alpine company, called U.S. Oceanography, and sold the helicopters. Otterman also donated a cherrywood desk, credenza, conference table and chairs, sofa and projection television system.

The total cost of the helicopters was $650,000, including a $100,000 cash donation from the Honorary Deputy Sheriff’s Assn. Federal grant monies were also used in the purchase.

Kelly said he will check to see whether the donated items were accepted by the Board of Supervisors. Donations must be officially approved before being accepted, Kelly said.

Besides the helicopter, Kelly said he would make sure that $3.55 million in drug fund expenditures are legal under federal guidelines. The fund has $1.32 million remaining, sheriff’s records show.

Dan Greenblat, Roache’s special assistant, said the Sheriff’s Department was not troubled by Kelly’s announcement.

“We welcome the auditor’s inquiry and as we have indicated before, we look forward to his usual comprehensive and in-depth audit,” Greenblat said. “We have no problem with this whatsoever.”

Roache said Tuesday that the department made a mistake and has corrected it.

“We were led to believe that the appropriations for the special fund was consistent with county policy and in our internal audit, we determined it was not, so we took the corrective steps,” he said.

Roache and Greenblat have insisted that the misspending came to light during a routine internal audit. But announcement of the audit came last Friday, the day sheriff’s officials were legally required to provide The Times details of its spending from the asset-forfeiture and special fund accounts.