ROGERSVILLE — Although the state comptroller’s office included several negative findings in Hawkins County’s 2011-12 fiscal year audit, County Mayor Melville Bailey said the infractions for the most part are minor and easily corrected.
On a positive note, the 2011-12 county audit showed no instances of noncompliance to the financial statements of Hawkins County; or significant deficiencies in internal control over major programs.
The audit also revealed no findings that are required to be reported under federal guidelines for misuse of federal funds.
“We had several (negative) findings, but in my estimation they were minor in nature,” Bailey said. “There was no serious theft, and a lot of the findings were mistakes which occurred because the officeholder or department head didn’t have enough information to make the correct decision.”
Among the negative findings were:
• The Solid Waste Department reported four thefts at the Route 131 convenience center. Approximately $600 worth of scrap metal was taken. In one instance, an employee resigned and was not charged. In the other three instances, a former employee was charged with misdemeanor theft and was ordered to pay $60 in restitution.
“We had some theft at the (solid waste) convenience center,” Bailey said. “He were tasking stuff out of the metal box, but we got them. We had a surveillance camera over there, and he had it in his pocket when they arrested him. He had to pay $60 in restitution.”
• Three used vehicles were purchased by the county school maintenance department for $9,999.99 each without formal bids, circumventing the mandatory bid process for items over $10,000.
Three separate purchase orders were issued for each of the vehicles in August of 2011, and three separate checks were written to the same dealership.
A review of Board of Education minutes revealed that two subsequent purchases occurred in July and August of 2012 from the same dealership for $9,998 and $9,990.
“We got clarification, and the comptroller says if it’s anything over $8,000 you better bid it out to be safe,” Bailey said. “The school system, they were going to provide documentation that those were good buys.”
• Funds were stolen by the cafeteria manager at Joseph Rogers Primary School, who later pleaded guilty to theft under $500, was placed on probation, and terminated from the cafeteria manager position.
• The Trustee’s office had deficiencies in its accounting records “as a result of a lack of management oversight related to incorrect journal entries being made during the audit period, and the errors not being detected and corrected.”
On July 14, 2011, an employee of the Trustee’s office posted a journal entry which overstated the school department’s general purpose fund by $555,212. The error remained undetected and uncorrected until brought to their attention by the comptroller’s office.
• The Clerk and Masters office purchased $8,156 worth of office supplies and equipment using the wrong budget line item.
The state comptroller’s office recommends that Hawkins County adopt a central system of accounting and budgeting for all county departments, including the school system.
The comptroller’s office also recommends that the Hawkins County Commission establish an Audit Committee to assist the county commission in providing independent and objective reviews of the financial reporting process, internal controls, the audit function, and being responsible for monitoring management’s plans to address various risks.