December 2, 2019 MEMORANDUM

December 2, 2019

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 2017 and Earlier

The Division of Local Government Audit has compiled the enclosed cash shortages and other thefts exhibits for the fiscal years ended 2017 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, seventeen of the 2017 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 December 2, 2019 Page 2 of 2

Municipalities

Description

Total Number of Entities

342

Reporting Cash

Shortages and Thefts

37

Schools

Internal School Funds Public Charter Schools

148

22

59

0

Quasi Governments

Utility Districts Housing Authorities Other Quasi Governments1

177

4

85

16

192

4

Nonprofits, Other 2 Total

262

3

1265

86

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

Reporting

Entity

Total Number Cash

Type

Description

of Entities Shortages

and Thefts

Unaudited Entities Nonprofit Organizations

Not Available

4

School Support Organizations Not Available

4

Volunteer Fire Departments

Not Available

1

Total

Not Available

9

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

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 2017 and Earlier

TABLE OF CONTENTS

Exhibit

Schedule of Cash Shortages and Other Thefts

A

Explanations of Cash Shortages and Other Thefts

B

Pages 4 - 13 14 - 57

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 2017 and Earlier

Exhibit A

Entity Name

MUNICIPALITIES

Adams 1. General Government

Alcoa 2. Education Department

Allardt 3. Water Department

Burlison 4. General Government

Chapel Hill 5. General Government/Fire Department

Clarksville 6. Broadband Division

Gas, Water and Sewer Department Parks and Recreation Department

Collinwood 7. General Government

Recreation Department Water Department Water Department General Government Water Department

Cornersville 8. General Government

Police Department

Decherd 9. Water and Sewer Department

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

6/30/2017

6/30/2017

6/30/2013

6/30/2017 6/30/2016 6/30/2017

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

6/30/2015 6/30/2015

6/30/2017

(3)

$

3,500 $

775 $

0$

(775) $

3/3/2014

344,204

194,876

0

(41)

(3)

540

0

540

0

3/7/2018

748

0

748

(748)

(3)

3,130

3,130

0

0

(3) 6/17/2016

(3)

585 47,518

59

0 47,518

0

585

(585)

0

(5,940)

59

(59)

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 38,256 76,497 20,375 63,803

0

0

0

0

0

0

0

(40,000)

0

(319)

0

(960)

(3)

7,023

7,023

0

(7,023)

(3)

1,000

1,000

0

(1,000)

9/18/2017

210,774

0

210,774

0

0

194,835

540

0

3,130

0 41,578

0

879 1,865 38,256 36,497 20,056 62,843

0 0

210,774

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 2017 and Earlier

Entity Name Dyer 10. General Government

Elizabethton 11. Electric Department

Gadsden 12. General Government

Gallatin 13. General Government

Harriman 14. Recreation Department

Jackson 15. General Government

Health and Sanitation Department Public Welfare and Community Service

Jellico 16. General Government

Knoxville 17. Finance Department

Public Works Department

Lakeland 18. General Government

General Government

Lenoir City 19. Board of Education

Luttrell 20. General Government

Mason 21. General Government

Fiscal Year First

Reported (1)

Comptroller Investigative

Report Release Date (2)

Original Amount of Shortage

6/30/2014

(3)

225

Beginning/ Carry-

Forward Balance

225

Current Year

Increase

0

Current Year

Reduction

(225)

6/30/2017

(3)

3,000

0

3,000

0

6/30/2013

12/10/2014

35,241

35,241

0

0

6/30/2017

4/19/2017

1,173

0

1,173

(1,173)

6/30/2013

(3)

25,000

25,000

0

0

6/30/2017

(3)

6/30/2017

(3)

6/30/2016

(3)

17,400 521 770

0

17,400

0

521

770

0

(700) (521) (770)

6/30/2013

6/5/2014

96,450

96,450

0

0

6/30/2017

(3)

6/30/2017

(3)

1,446 5,000

0

1,446

(1,446)

0

5,000

(5,000)

(4)

(3)

(4)

(3)

5,961 32,259

5,961 12,759

0

0

0

(4,760)

6/30/2017

(3)

8,162

0

8,162

(8,162)

6/30/2016

6/2/2016

120,506

120,506

0

(54,500)

6/30/2014

7/19/2016

75,744

75,744

0

(75,744)

5

Exhibit A

End of Year Balance

0 3,000 35,241

0 25,000 16,700

0 0 96,450 0 0 5,961 7,999 0 66,006 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 2017 and Earlier

Entity Name Water Department

Maury City 22. Accounting Department

23. Memphis General Services Division Public Works Division Public Works Division Library Division Public Works Division Police Division Public Works Division General Government

Morristown 24. Police Department

Mount Pleasant 25. Police Department

Oakland 26. General Government

Parks and Recreation Department

Philadelphia 27. General Government

Pittman Center 28. General Government

Ridgely 29. General Government

Rockwood 30. General Government

Rogersville 31. Water Department

Fiscal Year First

Reported (1) 6/30/2014

Comptroller Investigative

Report Release Date (2)

7/19/2016

Original Amount of Shortage

602,865

Beginning/ Carry-

Forward Balance

602,865

Current Year

Increase 0

Current Year

Reduction (602,865)

6/30/2013

(3)

2,300

2,300

0

(2,300)

6/30/2017

(3)

5

0

5

0

6/30/2017

(3)

9,489

0

9,489

0

6/30/2017

(3)

21,000

0

21,000

0

6/30/2016

(3)

917

917

0

0

6/30/2016

(3)

258

258

0

0

6/30/2015

(3)

4,800

302

0

0

6/30/2015

(3)

40

40

0

0

6/30/2014

(3)

24,012

24,012

0

0

6/30/2015

7/8/2015

6,000

500

0

(500)

(4)

(3)

1,578

0

1,578

(1,578)

6/30/2016 6/30/2016

4/18/2017 4/18/2017

1,352 6,631

1,352 6,631

0

(1,352)

0

(6,631)

6/30/2013

5/14/2014

6,714

4,985

0

0

6/30/2017

12/20/2017

600

0

600

0

6/30/2016

(3)

73

73

0

(73)

6/30/2012

2/27/2013

32,725

32,725

0

0

6/30/2017

4/18/2018

263,574

0

263,574

0

6

Exhibit A

End of Year Balance

0

0

5 9,489 21,000

917 258 302

40 24,012

0

0

0 0

4,985

600

0

32,725

263,574

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 2017 and Earlier

Exhibit A

Entity Name

Samburg 32. General Government

Scotts Hill 33. General Government

Sevierville 34. Electric Department

Tellico Plains 35. Water and Sewer Department

Unicoi 36. General Government

37. Whiteville Water and Sewer Department General Government General Government General Government General Government

Total Municipalities

INTERNAL SCHOOL FUNDS

Claiborne County Schools 38. Powell Valley Elementary School

Clarksville-Montgomery County Schools 39. Kenwood Middle School

Montgomery Central High School

Clinton City Schools 40. South Clinton Elementary School

Davidson County Schools 41. Glencliff High School

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

2/15/2017

31,759

31,759

0

(3,381)

28,378

6/30/2017

(3)

893

0

893

(893)

0

6/30/2017

(3)

5,998

0

5,998

(2,240)

3,758

6/30/2015

9/21/2015

819

819

0

0

819

6/30/2013

(3)

671

671

0

(671)

0

6/30/2016 6/30/2016 6/30/2015 6/30/2014 6/30/2013

(3)

1,878

1,878

0

(1,878)

0

(3)

439

439

0

(439)

0

(3)

728

680

0

(680)

0

(3)

5,128

3,842

0

(3,842)

0

(3)

11,291

5,741

0

(2,650)

3,091

$ 2,347,577 $ 1,551,442 $

552,545 $ (842,424) $

1,261,563

6/30/2017

6/30/2017 6/30/2017

6/30/2016

6/30/2015

4/19/2017 $

(3) (3)

(3)

(3)

6,694 $

151 242

390

2,814

0$

0 0

390

2,814

6,694 $

151 242

0

0

0$

(151) (242)

0

(2,814)

6,694

0 0

390

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 2017 and Earlier

Entity Name Dyersburg City Schools 42. Dyersburg High School

Fayette County Schools 43. Buckley-Carpenter Elementary School

Northwest Elementary School Oakland Elementary School Oakland Elementary School

Giles County Schools 44. Richland High School

Hamilton County Schools 45. Red Bank High School

Tyner Academy

Hancock County Schools 46. Hancock County Middle/High School

Hardeman County Schools 47. Bolivar Central High School

Toone Elementary School Toone Elementary School

Henry County Schools 48. Henry County High School

Humboldt City Schools 49. East End Elementary

Humphreys County Schools 50. Lakeview Elementary School

Jackson-Madison County Schools 51. Liberty Technology Magnet High School

Madison Academic High School

Lawrence County Schools 52. EO Coffman Middle School

Fiscal Year First

Reported (1)

Comptroller Investigative

Report Release Date (2)

Original Amount of Shortage

6/30/2014

(3)

3,085

Beginning/ Carry-

Forward Balance

3,085

Current Year

Increase

0

Current Year

Reduction

0

6/30/2017

(3)

6/30/2015

(3)

6/30/2017

(3)

6/30/2016

(3)

17

0

17

0

191

191

0

0

17

0

17

0

50

50

0

0

6/30/2017

(3)

800

0

800

0

6/30/2017

(3)

6/30/2017

(3)

400 1,450

0

400

(400)

0

1,450

(1,450)

6/30/2016

(3)

900

900

0

(900)

6/30/2015 6/30/2017 6/30/2017

(3) 5/21/2018

(3)

1,500 2,125

11

1,355 0 0

0 2,125

11

(400) (840)

0

6/30/2016

(3)

658

658

0

(304)

6/30/2017

(3)

475

0

475

0

6/30/2013

7/10/2014

8,983

7,203

0

0

6/30/2017

(3)

6/30/2017

(3)

144

0

144

0

200

0

200

0

6/30/2013

(3)

6,350

6,350

0

0

8

Exhibit A

End of Year Balance

3,085

17 191

17 50

800

0 0

0

955 1,285

11

354

475

7,203

144 200

6,350

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