Southeast Tennessee stolen and missing funds
The chart below includes the public entities in Southeast Tennessee that had shortages of taxpayer funds and how much has been recovered.Entity Beginning shortage Amount recovered Amount remainingCounty governments and departmentsCumberland Co. Veterans Services $50,000 $6,713.50 $43,285.50Cumberland Co. Sheriff’s Office $1,402 $1,402 $0Franklin Co. Circuit, GeneralSessions and Juvenile Courtclerks office $3,045.25 $3,046.25 $0Loudon Co. Sheriff Office $7,627 $7,627 $0Meigs Co. Finance Office $26,604.17 $26,604.17 $26,604.17Polk Co. Circuit and GeneralSessions courts clerk $1,612.46 $1,612.46 $0Sequatchie Co. County Clerk $310 $310 $0Warren Co. Memorial Airport $30,559.45 $20,559.45 $0MunicipalitiesChattanooga Electric Department $252 $252 $0Chattanooga Public Library $2,305 $2,305 $0Chattanooga Housing Authority $167,577 $159,297 $0Pikeville government $177,599 $0 $177,599Internal school fundsWhitwell High School $35,332 $0 $35,332Utility districtsLone Oak Utility District $400 $0 $400Housing authoritiesChattanooga Housing Authority $167,527 $159,297 $10,825*Cleveland Housing Authority $51,764 $8,038 $82,931*Arc of Hamilton County $2,545 $0 $2,545Union Grove Fire Department $4,954 N/A $4,954***No Comptroller’s Office investigation conducted**For organizations with no statutory annual audit requirement, carry-forward amounts, reductions for restitution, insurance and/or write-off amounts and ending balances are not available.Source: Tennessee Comptroller’s Office
At least 15 of Southeast Tennessee's governments, utilities, internal school accounts and nonprofit entities are due almost $385,000 in stolen public money, according to a state review.
That's nearly 10 percent of the $4.27 million in stolen public funds owed to taxpayers across the state's 95 counties, according to a Tennessee Comptroller of the Treasury report released last week.
The 2015 Report of Cash Shortages updates the status of money stolen and missing from Tennessee's 95 county governments as of June 30, 2015, according to officials. The report documents money stolen or missing during the 2014-2015 fiscal year, as well as previous years, and takes a look at how much was recovered.
Of the seven Southeast Tennessee county government entities that had shortages of stolen funds, only two had uncollected balances showing on the report. Both involved criminal investigations.
"We are encouraged to see action has been taken in Southeast Tennessee," comptroller's office spokesman John Dunn said of the region's county governments. "Taxpayers should expect nothing less.
"The comptroller's office always recommends governmental entities seek restitution whenever money is stolen or misused," Dunn said.
Cumberland County's Veterans Services Office had a cash shortage of at least $134,244.58 in 2013, the report showed. Former director of the office Mark Allen Daniels was charged in 2012 with the theft. Since then, a plea agreement reduced the theft amount by $12,437.79, with the remaining $50,000 to be repaid at $175 per week. Payments applied to that amount left a $43,286.50 balance as of June 30, 2015.
In Meigs County, the office of finance director had a loss between July 1, 2008, and Nov. 30, 2013, of $26,604.17 that is the subject of a pending trial involving former director Connie Allen. Allen is charged with one count of theft over $10,000 and one count of official misconduct.
The comptroller's office also released a second report detailing cash shortages and theft for cities, internal school funds, utility district, housing authorities, nonprofits and other government entities for the fiscal year ending 2014 and earlier.
One municipal government was owed the lion's share in another criminal investigation going back more than four years.
Of the $384,475 in unrecovered public funds in Southeast Tennessee, Pikeville taxpayers are owed just under half - $177,599 - related to a major theft by its former mayor, the report shows. Former Mayor Greg Johnson was charged in 2012 with official misconduct and theft over $60,000 but pleaded to reduced charges of theft over $10,000 and official misconduct. As of June 2014, Johnson had not repaid any of the missing funds to the city, the report said.
Another major unrecovered loss among this group stems from a theft at Whitwell High School in Marion County. Former bookkeeper Lois Alene Vandergriff was charged with taking $35,332 and vandalism of a computer hard drive. A 2014 investigative audit revealed the theft. No restitution has been paid.
One volunteer fire department - Union Grove Volunteer Fire Department in McMinn County - had a loss of $4,954 that resulted in 20 counts of forgery and one count of theft being leveled against former treasurer Donna Hurst, who was accused last year of writing unauthorized checks to herself. The same balance remains.
Statewide, Tennessee counties started out fiscal year 2015 with $1,032,456 in cash shortages that have not been recovered and gained $1,069,621 in new shortages during the fiscal year, according to the comptroller's office. Tennessee counties were able to recover $1,269,967 through restitution payments, insurance claims or other means, leaving a shortage of $832,110 at the end of the fiscal year.
Fiscal year 2014 began with a cash shortage of $1,563,137, and during that year $2,546,576 in new shortages were found, officials said. A total of $671,796 was recovered leaving behind $3.44 million.
Contact staff writer Ben Benton at bbenton@timesfreepress.com or 423-757-6569.