No impropriety found in Tyrone audit

Fri, 06/20/2008 - 3:25pm
By: Ben Nelms

It has long been predicted by many in Tyrone that an audit of the town’s books would reveal significant improprieties over the past several years by the previous town administration. But those results were not forthcoming June 19 when the council was presented with a management letter from auditor Post & Associates that showed few problems.

In a June 2 letter, Dan Post said, “We have examined all material invoices for capital outlay expenditures from all funds from 2003 to 2008, our examination found no material expenditures have been paid from the incorrect fund or no expenditures have been misclassified as to type of expenditure. We also verified that no inter-fund transfers have been made during this period that have not been reflected in the town’s accounting system.”

Post further noted that he tested major expenditure categories from all funds from 2003-2008 to verify proper account coding in the town’s accounting system and found no material misclassifications. Post also reviewed billings for sewer services from the city of Fairburn for 2007-2008 and verified that the billing calculations matched the sewer contract terms.

Post did note deficiencies in a review of the town’s financial statements.

“The monthly financial reports prepared and presented to the council are not timely and contain categorization errors that are corrected on subsequent reports with no explanation,” Post said. “ We found numerous instances of retroactive journal entry postings that made the financial statements appear incorrect due to these adjusting journal entries. The finance department needs to produce correct initial financial statements within a shorter time span for the council’s review and have explanations for any prior period changes to the financial statements. We also recommend that a simplified one page ‘snapshot’ type summary financial statement be prepared monthly for the council that contains important information such as cash balances, summary departmental revenues and expenditures along with budget comparisons.”

Some in Tyrone had expected a forensic audit to be performed. The audit that was performed, at a cost of $5,000, was instead one that took randomly selected items for review, said town Finance/Human Resources Director Mary Sturm.

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Submitted by Shaquita on Sun, 06/22/2008 - 8:56am.

So the Council spent $5,000 for a firm with extensive governmental accounting experience to review the financial records of the town and they found nothing. Not the answer Grace Caldwell wanted so she got Mary Sturm to look at the Post report. Mary Sturm with no credible credentials (not a CPA, no governmental accounting experience, no apparent evidence of continuing education to keep up with changing accounting requirements) looks at the Post report, doesn’t understand how to disqualify it so she comes up with a diversion. Now this group has allegedly, after adjourning a meeting, instructed their attorney, not a governmental financial expert, to investigate until he finds something at $150.00 per hour. Seems to me that this is the group that needs the investigation

Submitted by Margot on Sun, 06/22/2008 - 11:36am.

NO, it went more like this Shaquita. Post lists income and expenses. Expense items for $22,000 & $14,000 withdrawals with no explanation are listed. No funds are allotted for Post to investigate further. Mary Sturm sees the unknown entry and presents it to Council at the budget workshop. Since Valerie issues all checks, the Council asks what they’re for and to whom written. Valerie says I authorized the checks to Barry and me for vacation pay according to the policy pay plan. Mary then reads the pay plan which says vacation pay can only be accrued up to a total of 30 days and cannot be withdrawn except upon resignation or termination.

Possibilities:

Illegality #1 - Neither Barry nor Valerie had resigned or were terminated when the money was paid in Nov. 2007.

Illegality #2 - Simple math (something you probably can’t do) shows that after their terminations, 30 days accrued vacation was far short of the amounts withdrawn.

Illegality #3 - Accrued vacation is a year to year “use it or lose it” policy. The maximum for Barry & Valerie for the year 2007 was 15 days. For Barry that amounts to $5,655 not $22,000. For Valerie it’s $3,750, not $14,000.

Now, the lawyer is required by rules of the GA Bar under penalty of loosing his license to determine the law. He must determine if this is misfeasance or malfeasance of office, theft, or fraud. GOT IT Shaquita??

Submitted by HankyPanky on Sun, 06/22/2008 - 4:00pm.

Tyrone councilmen stalemated councilwomen’s efforts to carry the investigation further. After a big cussing, crying, name calling fight between council members and others after the June 10 meeting, to which there were numerous witnesses, a compromise was later made by council to sweep the trash under the rug. Hence, the council announcement on June 17 that “no impropriety found in the audit”. However, events quickly over-took the cover-up and 3 citizens open records requests for W2s were released the next day and the beans were spilled.

Submitted by TJAM on Fri, 06/20/2008 - 10:06pm.

I have a better question for some of that group. “Are the facts supporting your lawsuit better than those on which you based all your blogs of impropriety?”

Submitted by Shaquita on Fri, 06/20/2008 - 9:23pm.

Apologies anyone?

Submitted by TyroneConfidential on Sat, 06/21/2008 - 1:27pm.

The Council voted for a forensic audit which is an in-depth audit designed to discover evidence for “a court of justice”. Tracy Young wanted to limit the cost to $5,000, which would only pay for a basic balance sheet review. So Mary Sturm was hired for less money to evaluate the numbers Post & Assoc. provided. That’s when Mary discovered that the $36,000 figure for Barry & Valerie was a questionable misappropriation of public funds. This came at the same time Post presented its final report.

Young & Dial wanted to cover up the improper payment at $36,000 after Valerie was fired. They tried to close the barn door but the horse was already out. Enrage citizens forced the issue.

After the audit was presented, and the council meeting was over, Winnie Anderson asked Mgr. Chris Venice about the $36,000. Venice said she didn’t know what Ms. Anderson was talking about. Then Venice said, that happened in 2007 before she came here has nothing to do with the Town now. (Anderson has filed a lawsuit).

Ben Nelms had to meet a deadline and wrote his article without all the facts. Both Nelms & Gail Onesi had requested W-2 forms for Barry & Valerie on an open records request a few days earlier, but had not received them. Late Friday the W-2’s were released.

The W-2’s revealed that Amos had received $113,622.74 in total compensation for 2007. That’s $20,218.78 above his salary. Valerie’s W-2’s showed total compensation for 2007 to be $87,382.85. That’s $22,883.87 above her salary. The $36,000 has now risen to $43,102.65 of tax payers’ money; and that is for only 2007.

Realizing that they had possibly implicated themselves in a cover-up, Young & Dial relented and the council instructed Attorney Davenport to investigate what Post & Assoc. were not allowed to do, i.e. the legality of the audit figures.

As for the lawsuit, these are facts that support all the other facts reported for the last 17 months, with more to come. The lawsuit now enters into the possible criminal area of “impropriety”, and Town Defense Lawyer Leigh Hancher has refused to return phone calls for 4 days.

With the trial date nearing, and the defenses’ star witnesses, Barry, Valerie & Mayor Lee all removed and under criminal investigation, it don’t look good for the home team. As the great philosopher Yogi Berra has said, “The game ain’t over ‘til it’s over”.

Submitted by glfrgurl on Sat, 06/21/2008 - 2:08pm.

Can anyone ask for prior W-2s on city employees (going back say, 10 years)?
How much cash does Tyrone take in on a weekly basis and are and were there safeguards in place to protect the integrity of the collection of cash? (you get what I mean)
What is the Anderson lawsuit about and are there other lawsuits that have been filed against the city of Tyrone and what do they involve?
If Tyrone loses a lawsuit is there insurance that covers this? (of course if there is I assume the higher cost is passed on to the taxpayers with their bottomless pockets of money)
Lastly, whose jurisdiction do criminal charges for missuse of government funds fall under? (Isn't there some kind of U.S. agency that handles just this?)
I'm just uninformed and would like to have these answers and don't know where to get them.

Submitted by TyroneConfidential on Sat, 06/21/2008 - 4:18pm.

Yes, W-2’s are public records for public employees. Write out a simple request saying, pursuant to the Georgia Open Records Act O.C.G.A.§§ 50-18-70 I would like W-2 statements for Barry, Valerie or whomever for the years 1997 thru 2007. Make sure Mary Sturm gets the requests. Chris Venice will ignore you.

There are no safeguards and poor record keeping of cash receipts given to Valerie. No one accurately answer this question. However, you may request what records they have which will tell you something. This was a budget workshop issue that come out.

Ms. Anderson is suing because Barry Amos approved drainage plans for the Estates Subdivision on Farr Road that diverted water drainage under Farr Road and dumped it on Ms. Anderson’s property. In heavy rains the water flows all over her yard to her back door. Both the old and new councils refused time and again to remedy the problem. She had to sue.

No one knows all the lawsuits currently against Tyrone because the council goes into secret executive session to discuss them. There are currently at least two zoning lawsuits, Ms. Anderson’s and a fired female police officer suit. Go the Civil Division at the Fayette County courthouse and ask the clerks to help you find lawsuits against Tyrone. It’s easy and they will be polite and happy to serve you. There have been more than 20 lawsuits filed since Amos became Town Manager.

Tyrone taxpayers pay over$200,000 per year to the Georgia Interlocal Risk Management Agency for insurance premiums. The list of exclusions is so long I can’t list all of them. The most important exclusions are inventory shortage, mysterious disappearance or altering of public property/documents, infidelity of employees, dishonesty, fraudulent or criminal acts of employees, mayor, council members and appointed officials. All the claims in the lawsuits. And yes, loss of these lawsuits would have to be paid by taxpayers including all attorneys fees. That’s why it make no sense for Tyrone not to take common sense approaches to solving problems instead of fighting to the death with taxpayer money when the policy won’t cover a loss. That’s gambling with taxpayers money.

The jurisdiction for criminal acts proceeds first to the Fayette County Districts Attorney’s Office on complaint by a citizen or Town Official. It up to the DA to review the evidence and ask for a grand jury hearing or call in the GBI for investigative evidence. Tyrone officials already have enough evidence to ask for arrests but has been trying to cover it up. Misuse of public funds is of the highest priority with the DA.

Excellent questions that every taxpayer should be asking. In today’s government secrecy we’re all uninformed. Keep the pressure on the council; we’re very near to blowing it open and forcing officials to do their duty to protect the public welfare. Otherwise they will become parties to a conspiracy to defraud the taxpayers.

Submitted by truthandjustice on Sun, 06/22/2008 - 9:37am.

Sounds impressive but I have lived here over 30 years and can only remember reading about 3 lawsuits against Tyrone that were not filed by a developer or a real-estate broker/agent all trying to get Tyrone to allow them to line their pockets at citizen expense (the Anderson suit and 2 by Fayette County; one to force Tyrone to permit a sewer plant to be located in Tyrone and the other when the county was taxing us for something we did not get. Don’t know details on the county suits but you can ask Chris Venice about them since she was with the county for both). I also don’t remember the town loosing but one or two of these suits. To me it looks like the elected officials and the staff you love to bash were doing a pretty good job of looking out for us citizens.

Submitted by TyroneConfidential on Sun, 06/22/2008 - 11:05am.

Well, I'm sorry your memory fails you, but of course you don't want to accept all the real truth. Do some work yourself and go to the Civil Division of Fayette Superior Court and read the lawsuits.

Submitted by rm.snell on Sat, 06/21/2008 - 7:17pm.

So Dick did you have your linching on Thursday Night? I am sorry I missed another exciting meeting. I think you are going to find with this council you will still not get what you are looking to find. THe budget audit does not surprise me however, I do not think you are going to get a better accounting wiih Mary Strum. She do'nt look none to bright. Good luck with the the watching and linching. I still say that you will find that Valerie will not be in the wrong. I will be looking forward to your lawsuit!

Submitted by glfrgurl on Sat, 06/21/2008 - 5:22pm.

I appreciate the response. Maybe the GBI does need to step in to take control of this mess. Someone needs to be held accountable if there truly are missing or missappropriated public funds. Too many people are complacent in the belief that tax money is being spent wisely.

Submitted by oldbeachbear on Fri, 06/20/2008 - 11:30pm.

I've said from day one, that nothing criminal would turn up in the audit. What I said was that probably things that would raise eyebrows, but nothing anyone would go to jail over.

They had told us they were going to do a forenic audit. They didn't.

In the paper was an article about unautherized checks totaling $36,000.00 being written. Nothing seems to have been done about that either, sooo....your guess is as good as mine.

I have become disenchanted with the whole deal.

1st we have a forenic audit, then we don't. We have 36,000.00 written in unauthorized checks, and someone fired over it. Then next, that didn't ...really happen....and we don't want to talk about it....nor their salaries.....so I won't waste anymore time and thought on Tyrone politics. My Grannie use to say, you can't stirr up s##### without getting a little on you. That is true for anyone who supported some. They can stirr it up...and when the political SB starts flying, they stand clear, and all well meaning people pulled in, are there covered. Sorry, I've learned my lesson. If Town Hall burned, I wouldn't even drive by.

The 5-0's picture
Submitted by The 5-0 on Sat, 06/21/2008 - 6:03pm.

From what I've read, the old Town Clerk wasn't the greatest in the world.

I think the answers you're looking for are there, but near impossible to find due to the old Clerk's filing system!

Give the new people time to sort things out (once the budget is finished) and then we'll find the truth.


Submitted by Boo on Sat, 06/21/2008 - 2:17pm.

“Say it ain’t so Joe,” unbelieving people said when “Shoeless” Joe Jackson was indicted in the Black Sox Baseball scandal for fixing the 1919 World Series.

Naysayers in Tyrone were just as unbelieving about the Tyrone government scandal in the beginning. Now that Tyrone is under internal investigation, all the employees should come forward with what they know. This help might result in the Town recouping enough misappropriated money to keep employees benefits and rehire those let go or demoted in salary. Let’s all have the courage to join the investigation and clean out the corruption once and for all.

Submitted by Margot on Sat, 06/21/2008 - 6:12pm.

I hope you have not been involved in any past cover-up of misallocated public funds. I know you are a big supporter of the old guard. Did you know of these violations? Give us any information you may have acquired. Good luck on your future and say hello to Fritz for me.

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