Tennessee Comptroller Releases Findings In Audit
The Tennessee Comptroller’s office has released their findings of an audit of Cocke County Government and Cocke County Schools. The audit report found 12 issues, two of those dealt with the Cocke County Director of Schools office. The audit report found a tax deposit due to the Internal Revenue Service was not reported timely resulting in the assessment of a penalty against the school system totaling $10,191. The audit also found that bank statements for the payroll clearing account was not accurately reconciled. The report also stated that the Cocke County School System is under investigation, but did not offer any details.
The audit also found issues in the County Mayor’s office stating that County management had entered into a contract for employee health insurance without proper approval. A retirement deposit due to the Tennessee Consolidated Retirement System was not reported timely resulting in the assessment of a penalty totaling $13,057. The audit also found that payroll taxes were overpaid to the Internal Revenue Service. The Cocke County Mayor’s office stated in their response to the findings that a change in their staff in their payroll department “negatively affected our processes and procedures. Due to the issues noted in the report and other factors, the staff member is no longer with the finance department. The new payroll staff is working with the finance director to reconcile and record proper transactions.” Also, in their audit, The Tennessee Office of Criminal Justice Program under the State Department of Finance and Administration reported deficiencies related to the administration of the Evidence Based Programming Grant resulting in questioned costs of $61,464. That grant makes state funds available to government agencies managing a local jail that houses TDOC inmates to support the implantation or enhancement of evidence-based programming to improve offender outcomes. The comptrollers report found that an on-site review conducted on July 11, 2023, noted that the county overcharged the state for travel by $195 and for salaries by $10,990 resulting in question costs of $11,185. This amount was deducted from the county’s June 2023 grant reimbursement. The August 11, 2023, on-site review noted that the county charged the state for work that was not completed by a subcontractor resulting in initial questioned costs of $102.500. The county submitted subsequent documentation of work performed from September 2023 through February 2024 and received a letter of approval dated May 17, 2024, to offset and reduce initial questioned costs to $50,279. Cocke County remitted payment for these questioned costs to the state on May 23, 2024. Final questioned costs, representing funding lost by Cocke County, totaled $61,464 from both on-site reviews. Provisions of the contract agreement in place between Cocke County and the Office of Criminal Justice Programs stipulate that ” …the grantee shall be reimbursed for actual ,reasonable, and necessary costs based upon the Grant Budget…”. Additionally, reimbursement for work not completed by the subcontractor was not considered allowable costs under the contracts provision for professional fees. These deficiencies are the result of a lack of management oversight by Cocke County”.
The Comptroller’s office recommended that “Cocke County officials should maintain proper oversight of grant programs and comply with all grant provisions. Requests for grant program expenditure reimbursements should only be made for actual allowable costs incurred”..
The county’s response stated that Cocke County “will follow all grant oversight provisions on future grants. A staff member has been assigned to be a grant coordinator and will work closely with the finance director and county employees who are grant administrators to ensure that oversight provisions are being done properly.”
https://comptroller.tn.gov/content/dam/cot/la/documents/county/2024/FY24CockeAFR.pdf