audits

Former county mayor, employees indicted on theft charges

News release from state comptroller’s office

The Tennessee Comptroller’s Office, working in conjunction with the investigator from the 24th Judicial District, has released an investigation related to several former Decatur County employees and former County Mayor Michael Smith.

Continue reading

TN endangered species list hasn’t been updated in 16 years

A state comptroller’s audit says that the Tennessee Wildlife Resources Agency has not updated Tennessee’s endangered species list in 16 years – an apparent violation of both state law and an agreement with the U.S. Fish and Wildlife Service.

A state law calls for the endandered species list to be updated every two years. The agreement with the federal agency calls for TWRA to submit additions and deletions to the list once a year.

In response to the audit finding, TWRA officials said the head of the agency’s biodiversity division was unaware of the reporting requirements until 2013 and is in the process of doing a full update.

Note: The audit is HERE; the current Tennessee endangered species list is HERE.

Dept. of Safety returning $112K in misspent fed forfeiture funds

The Tennessee Department of Safety and Homeland Security had $112,614 in inappropriate spending on food and catering that it received from federal forfeiture funds, according to a U.S. Department of Justice audit. Department officials say they will  reimburse the federal government for the questioned expenditures.

Continue reading

Prosecutor waits for comptroller audit of alleged ETSU racquet allegations

An East Tennessee State University internal audit has found that Yaser Zaatini, who resigned as tennis coach in March,  was involved in $106,000 worth of misdeeds and may have committed the crimes of theft, forgery and misconduct. But Washington County District Attorney is waiting for an audit by the state comptroller’s office before presenting the matter to a grand jury, reports the Johnson City Press.

 In his letter to ETSU President Brian Noland, obtained through a Tennessee Open Records request filed after his resignation was announced, Zaatini wrote “In conjunction with my resignation, I waive all annual leave accruals and have executed the enclosed promissory note promising to pay the university $31,293.13 consistent therewith. 

“In connection with this resignation I make no admission of malfeasance.”

…ETSU Board of Trustees member David Golden, head of the body’s Audit Committee, said the hall of fame coach was engaged in a “fairly sophisticated” scheme to falsify student-athletes’ signatures on meal expenditure forms and print phony receipts for restringing tennis racquets to be reimbursed for the costs. 

Tracing suspect transactions as far back as 2010, the university’s audit team estimated $85,674.61 in questionable expenses related to meal expenses, racquet stringing, registration fees and other expenditures. Auditors also tallied $20,747.63 in unreported annual leave they called into question. 

Even with the ETSU internal audit, Clark said if there were any charges, the state comptroller’s office would be the prosecuting agency, so he wanted to wait for that report before proceeding to the grand jury.

…“We want to make sure we have everything there might be before we move forward,” he said.

Nonprofit Mississippi River group dissolves after audit questions arise

A nonprofit group established protect and promote the Mississippi River in the stretch along Tennessee’s border has ceased operations after state auditors alleged improper bidding procedures in the design and construction of a $2 million visitors center, reports the Commercial Appeal.

The board of directors of the Mississippi River Corridor-Tennessee voted to dissolve because the Tennessee Department of Transportation terminated a contract with the group and quit paying invoices, said Diana Threadgill, president and executive director. “We just ran out of money,” she said.

Continue reading

Comptroller catches government thieves in Claiborne, Fayette, Jefferson, Sumner counties

The ever-vigilant state comptroller’s office reports finding thievery afoot at Powell Valley Elementary School in Claiborne County, the city recorder’s office in the Sumner County city of Gallatin, a parks office and a school system Fayette County and at the New Market Volunteer Fire Department in Jefferson County in recent auditing of local government entities.

There are also “several questions” about activities at the town of Oakland in Fayette County generally along with the indictment of an official who worked both for the town and as athletic director of Fayette County schools.

Continue reading

Audit catches city recorder stealing $32K

News release from the state comptroller’s office

An investigation by Tennessee Comptroller Justin P. Wilson and the Tennessee Bureau of Investigation has found that former Samburg city recorder Mary Swain stole at least $31,759 of public money.

Mary Swain was responsible for collecting money on behalf of the city, and Comptroller investigators found that she failed to deposit at least $14,471 of the cash she received for property taxes, garbage pick-up, and other city services. In fact, during the period July 1, 2013, through September 30, 2014, with the exception of fire protection fee collections, Swain deposited only $85 of the cash she received.

Continue reading

More on Durham audit — up to 500 violations, June hearing set

From The Tennessean’s overview story:

Former state Rep. Jeremy Durham violated state campaign finance law possibly as many as 500 times, including spending more than $10,000 of campaign funds illegally to buy an airplane ticket for his wife, custom suits, spa products and sunglasses, according to a state campaign finance audit released Wednesday.

He also used campaign money for more mundane bills, including lawn care and paint for his home office, the audit shows.

Durham made at least 55 illegal purchases using money given by donors; the state report outlines 39 expenses, but some include multiple purchases. The former Franklin lawmaker also used campaign funds to invest more than $100,000 in the company of a wealthy GOP donor, loan nearly $30,000 to a professional gambler who has a criminal past and loan $25,000 to his wife, auditors found.

Durham paid himself $7,702 from his campaign account for expenses he’d already been reimbursed for by the state, according to the audit. The practice is more commonly known as double-dipping.

…In addition to the illegal use of campaign finances, the audit details how Durham invested more than $100,000 in Life Watch Pharmacy, a company owned by Andrew Miller, a prominent Republican donor who has advocated for anti-Islam policy in the state.

…The report also states David Whitis, a professional gambler who has a criminal record, received three checks totaling $29,800 from Durham’s campaign account…Two of the checks to Whitis indicate the funds are a “loan to friend.” Additional information provided to the auditors by Durham states the money was “capital for a startup venture.”

From WPLN’s report:

Durham’s attorney has a “laundry list” of objections to the findings. Peter Strianse also says he thought the report was a draft that would not yet be distributed widely.

“I understand if that’s they’re procedure and those are the steps we have to go through,” says the lawyer. “But why in the world would you make public a report that you know is going to be subject to significant challenge?”

But a Registry official says the office followed standard protocol.  

Durham’s attorney has until May to respond to the findings, before a hearing slated for June.

The Franklin Republican was expelled from the legislature last year following nearly two dozen anonymous claims of sexual harassment.

A federal investigation into potential campaign finance violations is ongoing. 

 

Registry audit finds multiple campaign finance violations by Durham

The Registry of Election Finance staff today released its audit of former state Rep. Jeremy Durham’s campaign disclosures at a meeting of the Registry board. Here are the top-listed findings:

1. Jeremy Durham violated T.C.A. §2-10-105(a) and T.C.A. §2-10-107(a)(2)(A) by failing to report $36,334.95 in campaign contributions.

2. Jeremy Durham violated T.C.A. §2-10-105(a) by reporting $4,600 in contributions where the associated funds cannot be identified as being deposited into a bank account.

3. Jeremy Durham violated T.C.A. §2-10-105(a) by failing to report $10,623.70 in interest earned on campaign funds and T.C.A. §2-10-114(b)(1) by depositing $1,637.50 of that interest into his personal account.

4. Jeremy Durham violated T.C.A. § 2-10-302 by receiving $5,500 in contributions over the campaign limits.

5. Jeremy Durham violated T.C.A. §2-10-105(a) by reporting $6,500 of contributions intended for PACs he controlled as contributions to his campaign account.

6. Jeremy Durham violated T.C.A. § 2-10-107(a)(2)(A) by failing to accurately disclose the names of several contributors. 7. Jeremy Durham violated T.C.A. §2-10-105(a) and T.C.A. § 2-10-107(a)(2)(B) by failing to accurately report campaign expenditures.

8. Jeremy Durham violated T.C.A. §2-10-114 by disbursing $10,176.35 in campaign funds for prohibited activities.

9. Jeremy Durham made cash withdrawals and reimbursements to himself in the amount of $11,927.43 from campaign funds without support which is a violation of T.C.A. §2-10-114(b)(1).

10. Jeremy Durham reimbursed $7,702.07 in expenses to himself from his campaign account that were also reimbursed by the State of Tennessee which is a violation of T.C.A. §2-10-114(b)(1).

11. In violation of T.C.A. §2-10-212(c), Jeremy Durham failed to retain sufficient expense records to determine whether all expenditures were allowable.

12. Jeremy Durham disbursed $64,800 for promissory & convertible note activity which appears to be unallowable per T.C.A. §2-10-114(b)(1).

The full report is available by clicking on this link: durhamaudit

TN State Museum being audited — again

The Tennessee State Museum is under audit for the third time since 2011, reports The Nashville Post.

Deputy Director Mary Jane Crockett-Green sent an email to members of the Douglas Henry State Museum Commission confirming the audit, although at least six people from the Comptroller’s office started their work the day before.

“In Chairman [Tom] Smith’s absence due to travel, I have been asked to inform you that the Office of the Comptroller of the Treasury has scheduled an audit of the State Museum for the period of January 1, 2016, through December 31, 2016,” Crockett-Green wrote. “In addition to re-examining the Museum’s internal controls and confirming that all statutory requirements are being met, one of the primary objectives of the audit is to ensure that the corrective actions to mediate past Findings are being appropriately implemented.”

The new audit follows months of extensive reporting by the Post on the troubled agency and its apparent lack of oversight by the state commission entrusted with those duties — and it follows two highly critical audits in January 2011 and September 2015. In addition to new problems, the latter audit found the museum had still not implemented several procedural changes deemed necessary by the former one.

 

 

 

 

 

ABOUT THIS BLOG

Former Knoxville News Sentinel capitol bureau chief Tom Humphrey writes about Tennessee politics, government, and legislative news.

Subscribe by Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.