CLEVELAND, Tenn. - A pattern of misuse of Bradley County credit cards is a management problem that needs fixing, but state auditors told county leaders Monday they found no "intentional breakdown" of rules for credit card use.
Steve Reeder, Mid-East Tennessee regional director of audits for the Tennessee Comptroller's Office, and some of his staff appeared before the Bradley County Commission's Audit Committee to discuss findings in the county's 2015-16 audit.
The chief finding concerned widespread documentation problems when workers swiped county cards for meals, hotel rooms, fuel and other expenses.
Of 430 credit card purchases in the 2015-16 fiscal year, more than half - 238 - lacked either detailed receipts or signed charge slips, or were charges made locally. County policy calls for the cards to be used only for travel expenses and emergency purchases, and local uses must be explained in writing.
Auditors noted the lack of documentation left open the door for improper purchases, although none were cited in the audit.
"What we found was weakness in the way the policy was being administered," Reeder told committee members. He said auditors found a double failure: first, that employees using the cards were not properly documenting their purchases, and, second, that managers failed to correct the practice.
While auditors "don't think this was an intentional breakdown," he said, it shouldn't have happened.
"We're not criticizing your policy; we're criticizing the enforcement of the policy," he said.
Bradley County Sheriff's Office badgeSome audit committee members have said the same. Committee Chairman Dan Rawls and Commissioner Thomas Crye again pinned the blame on department heads or elected officials, who were asked to be present Monday to explain how they will fix the problem.
The Bradley County Sheriff's Office had the most infractions, with 146 purchases. The other offices were Bradley Fire & Rescue (48), Property Assessor (23), Emergency Management Agency (11) and Mayor's Office (10).
Sheriff Eric Watson defended his department, saying the higher infraction count reflects that his department has more employees than the others.
Up to now, Director of Support Services Richard McAllister has signed off on credit card purchases. Two weeks ago, Chief Deputy Brian Smith told commissioners he had begun countersigning the statements after McAllister approves them.
On Monday, Watson said he also has named longtime department employee Cassandra Burgiss as finance coordinator.
He didn't mention McAllister. In response to a Times Free Press inquiry, BCSO spokesman James E. Bradford Jr. said McAllister remains support services director although his "responsibilities have transitioned."
He said McAllister will begin developing policies and procedures for collecting revenue through the 128-bed inmate workhouse," which is scheduled to open this spring. Inmates will have outside jobs and will pay the county for their lodging. McAllister also oversees purchasing, garage operations; administration and maintenance and numerous other duties, Bradford said.
Bradley Fire & Rescue Chief Shawn Fairbanks and Assessor of Property Stanley Thompson also appeared. Thompson said he's been using the cards for many years and this is the first time it's triggered an audit finding.
Fairbanks asked for guidance on exactly what kind of documentation should accompany charge slips to comply with the policy.
The committee members present included Crye, Rawls and Commissioners Milan Blake, Louie Alford and Charlotte Peak, and citizen members Buster Stuart, Alan Burns and Dewayne Thompson.
Contact staff writer Judy Walton at jwalton@timesfreepress.com or 423-757-6416.