Audit reveals $144K in unauthorized compensation for CEIDC executives

The City of Crockett Council convened on January 10, 2023, to address various financial matters concerning executive compensation and compliance with reporting regulations. The meeting focused on a review of compensation practices for prior executive directors, revealing significant discrepancies in reporting and authorization.

The discussion began with an overview of monthly auto allowances, temporary living allowances, bonuses, and severance payments made to former executives. A total of $144,255 was identified in payments during the review period, with $118,622 of that amount not reported on required tax forms, such as W-2s or 1099s. The majority of these unreported payments were linked to Mr. Tom Lambert, who received substantial auto and living allowances, while Suzanne Steed was noted for receiving bonuses and severance pay that also lacked proper reporting.

The council highlighted that certain compensation items appeared to lack formal authorization from the board. Specifically, Christmas bonuses totaling $32,000 paid to Mr. Lambert and Ms. Steed from fiscal years 2013 to 2016 were discussed. Unlike prior years, where board resolutions authorized such bonuses, no such documentation was found for the later years.

Additionally, Mr. Lambert's temporary living allowance, which amounted to $26,049 over his tenure, was scrutinized. The board had only authorized this allowance through July 2012, yet payments continued without further approval, totaling $15,568 in unauthorized funds. The council also noted a performance incentive bonus of $8,400 awarded to Mr. Gentry in 2020, which was similarly paid without written authorization.

The meeting underscored the need for improved oversight and adherence to formal approval processes for executive compensation. The council plans to further investigate these findings and implement measures to ensure compliance moving forward.