November 5, 2018 MEMORANDUM - TN Comptroller

November 5, 2018

MEMORANDUM

TO:

Honorable Justin P. Wilson

Comptroller of the Treasury

FROM:

Jim Arnette, Director Division of Local Government Audit

SUBJECT: Cash Shortages and Other Thefts for Tennessee Municipalities and Other Organizations Subject to Contract Audit or Oversight for Fiscal Years Ended 2016 and Earlier

The Division of Local Government Audit has compiled the enclosed cash shortages and other thefts exhibits for the fiscal years ended 2016 and earlier for municipalities and other organizations subject to contract audit or oversight. The information contained herein is based upon information in investigative reports released by the Division of Investigations of the Tennessee Comptroller's Office as well as contract audits submitted by Certified Public Accounting firms to our division. As of the date of this memo, nine of the 2016 contract audits have not been filed with our office.

The enclosed exhibits represent instances of reported cash shortages and other thefts, including balances from prior years, which have not been resolved through restitution, insurance, write-off, or other means. Following is a summary of total audited entities by type in relation to the number of entities reporting current and/or prior-year balance(s) in the exhibits.

Honorable Justin P. Wilson Cash Shortages and Other Thefts November 5, 2018 Page 2 of 2

Description

Municipalities Schools

Quasi Governments

Nonprofits, Other 2 Total

Internal School Funds Public Charter Schools

Utility Districts Housing Authorities Other Quasi Governments1

Total Number of

Entities

342

148 55

179 86

188 224 1222

Reporting Cash

Shortages and Thefts

32

20 0

3 20

3

3 81

Additionally, the following unaudited entities reported cash shortages and other thefts:

Entity Type

Description

Unaudited Entities Total

Nonprofit Organizations School Support Organizations Volunteer Fire Departments

Total Number of Entities

Reporting Cash

Shortages and Thefts

Not Available

1

Not Available

4

Not Available

2

Not Available

7

Please let me know if you have any questions regarding the information provided.

Enclosures: Exhibit A ? Schedule of Cash Shortages and Other Thefts Exhibit B ? Explanations of Cash Shortages and Other Thefts

This report is available at ptroller.

1 "Other Quasi Governments" include, but are not limited to, joint ventures between governments, legally separate component units of other governments, human resource agencies, development districts, and community action agencies.

2 "Nonprofits, Other" include nonprofit and for-profit organizations that are audited as required by state contracts and agreements in connection with public dollars received by the respective organizations.

Report of Cash Shortages and Other Thefts Municipalities and Other Organizations Subject to Contract Audit or Oversight

Reported in Comptroller Investigative Reports and Annual Financial Audits Fiscal Years Ended 2016 and Earlier

TABLE OF CONTENTS

Exhibit

Schedule of Cash Shortages and Other Thefts

A

Explanations of Cash Shortages and Other Thefts

B

Pages 4 - 12 13 - 52

Division of Local Government Audit Schedule of Cash Shortages and Other Thefts Municipalities and Other Organizations Subject to Contract Audit or Oversight

as Reported in Comptroller Investigative Reports and Annual Financial Audits for Fiscal Years Ended 2016 and Earlier

Exhibit A

Entity Name

MUNICIPALITIES

Adams 1. General Government

Alcoa 2. Education Department

Carthage 3. Water and Sewer Department

Chapel Hill 4. General Government/Fire Department

Clarksville 5. Gas, Water and Sewer Department

Parks and Recreation Department

Collinwood 6. General Government

Recreation Department Water Department Water Department General Government Water Department

Cornersville 7. General Government

Police Department

Covington 8. General Government

Dyer 9. General Government

Fiscal Year First

Reported (1)

Comptroller Investigative

Report Release Date (2)

Original Amount of Shortage

Beginning/ Carry-

Forward Balance

Current Year

Increase

Current Year

Reduction

End of Year Balance

6/30/2016

6/30/2014

6/30/2014

6/30/2013

6/30/2016 (4)

6/30/2013 6/30/2013 6/30/2013 6/30/2012 6/30/2009 6/30/2009

6/30/2015 6/30/2015

6/30/2016

6/30/2014

(3)

$

3,500 $

0$

3/3/2014

344,204

195,204

(3)

3,302

3,302

(3)

3,130

3,130

6/17/2016

47,518

0

(3)

768

768

4/7/2014 4/7/2014 4/7/2014

(3) 2/6/2012 2/6/2012

879 1,865 91,682 76,497 20,375 63,803

879 1,865 91,682 76,497 20,375 63,803

(3)

7,023

7,023

(3)

1,000

1,000

(3)

1,000

0

(3)

225

225

3,500 $

(2,725) $

0

(328)

0

(3,302)

0

0

47,518 0

0 (768)

0

0

0

0

0

(53,426)

0

0

0

0

0

0

0

0

0

0

1,000

(1,000)

0

0

775

194,876

0

3,130

47,518 0

879 1,865 38,256 76,497 20,375 63,803

7,023 1,000

0

225

4

Division of Local Government Audit Schedule of Cash Shortages and Other Thefts Municipalities and Other Organizations Subject to Contract Audit or Oversight

as Reported in Comptroller Investigative Reports and Annual Financial Audits for Fiscal Years Ended 2016 and Earlier

Entity Name

Gadsden 10. General Government

Harriman 11. Recreation Department

Jackson 12. Public Welfare and Community Service

Jellico 13. General Government

Knoxville 14. Finance Department

Parks and Recreation Department

Lakeland 15. General Government

General Government

Luttrell 16. General Government

Mason 17. General Government

Water Department

Maury City 18. Accounting Department

19. Memphis Library Division Public Works Division Police Division Public Works Division General Government Police Division

Fiscal Year First

Reported (1)

Comptroller Investigative

Report Release Date (2)

Original Amount of Shortage

Beginning/ Carry-

Forward Balance

Current Year

Increase

Current Year

Reduction

6/30/2013

12/10/2014

35,241

35,241

0

0

6/30/2013

(3)

25,000

25,000

0

0

6/30/2016

(3)

770

0

770

0

6/30/2013

6/5/2014

96,450

96,450

0

0

6/30/2016

(3)

6/30/2015

(3)

10,200 3,347

0 3,347

10,200 0

(10,200) (3,347)

(4)

(3)

(4)

(3)

5,961 32,259

5,961 18,259

0 (5,500)

6/30/2016

6/2/2016

120,506

0

120,506

0

6/30/2014 6/30/2014

7/19/2016 7/19/2016

75,744 602,865

75,744 602,865

0

0

0

0

6/30/2013

(3)

2,300

2,300

0

0

6/30/2016

(3)

6/30/2016

(3)

6/30/2015

(3)

6/30/2015

(3)

6/30/2014

(3)

6/30/2014

(3)

917 258 4,800

40 24,012

8,220

0 0 4,800 40 24,012 8,220

917

0

258

0

0

(4,498)

0

0

0

0

0

(8,220)

5

Exhibit A

End of Year Balance

35,241

25,000

770

96,450

0 0

5,961 12,759

120,506

75,744 602,865

2,300

917 258 302

40 24,012

0

Division of Local Government Audit Schedule of Cash Shortages and Other Thefts Municipalities and Other Organizations Subject to Contract Audit or Oversight

as Reported in Comptroller Investigative Reports and Annual Financial Audits for Fiscal Years Ended 2016 and Earlier

Entity Name Millington 20. Police Department

Morristown 21. Police Department

Mount Juliet 22. Police Department

23. New Johnsonville General Government

Oakland 24. General Government

Parks and Recreation Department

Philadelphia 25. General Government

Pikeville 26. General Government

Ridgely 27. General Government

Rockwood 28. General Government

Samburg 29. General Government

Tellico Plains 30. Water and Sewer Department

Unicoi 31. General Government

32. Whiteville Water and Sewer Department

Fiscal Year First

Reported (1)

Comptroller Investigative

Report Release Date (2)

Original Amount of Shortage

(4)

(3)

12,190

Beginning/ Carry-

Forward Balance

12,190

Current Year

Increase

0

Current Year

Reduction

(12,190)

6/30/2015

7/8/2015

6,000

500

0

0

6/30/2015

(3)

15,780

15,780

0

(15,780)

6/30/2015

(3)

5,618

5,618

0

(5,618)

6/30/2016

4/18/2017

1,352

0

1,352

0

6/30/2016

4/18/2017

6,631

0

6,631

0

6/30/2013

5/14/2014

6,714

4,985

0

0

6/30/2012

8/9/2012

177,599

4,929

0

(4,929)

6/30/2016

(3)

73

0

73

0

6/30/2012

2/27/2013

32,725

32,725

0

0

6/30/2016

2/15/2017

31,759

0

31,759

0

6/30/2015

9/21/2015

819

819

0

0

6/30/2013

(3)

657

657

0

0

6/30/2016

(3)

1,878

0

1,878

0

6

Exhibit A

End of Year Balance

0 500

0 0 1,352 6,631 4,985 0 73 32,725 31,759 819 657 1,878

Division of Local Government Audit Schedule of Cash Shortages and Other Thefts Municipalities and Other Organizations Subject to Contract Audit or Oversight

as Reported in Comptroller Investigative Reports and Annual Financial Audits for Fiscal Years Ended 2016 and Earlier

Exhibit A

Entity Name General Government General Government General Government General Government

Total Municipalities

INTERNAL SCHOOL FUNDS

Blount County Schools 33. Fairview Elementary School

Chester County Schools 34. Chester County High School

Clarksville-Montgomery County Schools 35. Kenwood Middle School

Northwest High School West Creek High School

Cleveland City Schools 36. Donald P. Yates Primary School

Clinton City Schools 37. South Clinton Elementary School

Davidson County Schools 38. Glencliff High School

Pearl Cohn High School

Dyersburg City Schools 39. Dyersburg High School

Dyersburg High School

Fayette County Schools 40. Oakland Elementary School

Northwest Elementary School Somerville Elementary School

Fiscal Year First

Reported (1) 6/30/2016 6/30/2015 6/30/2014 6/30/2013

Comptroller Investigative

Report Release Date (2)

(3) (3) (3) (3)

Original Amount of Shortage

439 728 5,128 11,291

Beginning/ Carry-

Forward Balance

0 680 5,128 8,391

Current Year

Increase 439 0 0 0

Current Year

Reduction 0 0

(1,286) (2,650)

$ 2,033,042 $ 1,460,394 $

226,801 $ (135,767) $

End of Year Balance

439 680 3,842 5,741

1,551,428

6/30/2015

6/30/2015

6/30/2016 6/30/2016 6/30/2016

6/30/2015

6/30/2016

6/30/2015 6/30/2015

6/30/2016 6/30/2014

6/30/2016 6/30/2015 6/30/2015

(3)

$

612 $

612 $

0$

(612) $

(3)

24

24

0

(24)

(3)

65

0

65

(65)

(3)

969

0

969

(969)

(3)

65

0

65

(65)

(3)

3,391

3,391

0

(3,391)

(3)

390

0

390

0

(3)

2,814

0

2,814

0

(3)

51,933

0

51,933

(51,933)

(3)

2,000

0

2,000

(2,000)

(3)

3,085

3,085

0

0

(3)

50

0

50

0

(3)

191

191

0

0

(3)

14,855

14,855

0

(14,855)

0

0

0 0 0

0

390

2,814 0

0 3,085

50 191

0

7

Division of Local Government Audit Schedule of Cash Shortages and Other Thefts Municipalities and Other Organizations Subject to Contract Audit or Oversight

as Reported in Comptroller Investigative Reports and Annual Financial Audits for Fiscal Years Ended 2016 and Earlier

Entity Name Grundy County Schools 41. North Elementary School

Hancock County Schools 42. Hancock County Middle/High School

Hardeman County Schools 43. Bolivar Central High School

Henry County Schools 44. Henry County High School

Humphreys County Schools 45. Lakeview Elementary School

Lawrence County Schools 46. EO Coffman Middle School

Marion County Schools 47. Whitwell High School

Sequatchie County Schools 48. Sequatchie County Middle School

Shelby County Schools 49. Manassas High School

White Station High School Chimneyrock Elementary School Cordova High School Hamilton High School Administration - Facilities Administration - Student Support Alton Elementary School Arlington High School Carver High School Chickasaw Middle School Colonial Middle School Corry Middle School Evans Elementary School

Fiscal Year First

Reported (1)

Comptroller Investigative

Report Release Date (2)

Original Amount of Shortage

6/30/2015

(3)

300

Beginning/ Carry-

Forward Balance

300

Current Year

Increase

0

Current Year

Reduction

(300)

6/30/2016

(3)

900

0

900

0

6/30/2015

(3)

1,500

1,425

0

(70)

6/30/2016

(3)

658

0

658

0

6/30/2013

7/10/2014

8,983

7,203

0

0

6/30/2013

(3)

6,350

6,350

0

0

6/30/2010

6/10/2014

35,332

35,332

0

(7,841)

6/30/2012

10/13/2016

18,322

0

18,322

0

6/30/2016 6/30/2016 6/30/2015 6/30/2015 6/30/2015 6/30/2014 6/30/2014 6/30/2014 6/30/2014 6/30/2014 6/30/2014 6/30/2014 6/30/2014 6/30/2014

(3) (3) (3) (3) (3) 9/7/2007 (3) (3) 1/16/2014 (3) (3) (3) (3) (3)

3,500 1,120 2,924 1,056 9,178 300,000

411 1,107 171,954

814 1,102 1,000 1,814 1,458

0 0 2,924 176 9,178 106,275 411 1,107 171,954 814 1,102 1,000 1,814 1,458

3,500 1,120

0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 (106,275) (411) 0 0 0 0 0 0 0

8

Exhibit A

End of Year Balance

0

900

1,355

658

7,203

6,350

27,491

18,322

3,500 1,120 2,924

176 9,178

0 0 1,107 171,954 814 1,102 1,000 1,814 1,458

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