Audit reveals 99 undocumented CEIDC payments totaling $450,000 and missing checks

The City of Crockett Council meeting on January 10, 2023, focused on financial oversight and accountability, particularly concerning missing bank statements and checks. A detailed review of approximately 3,300 transactions revealed that six bank statements were either missing or incomplete. This gap resulted in 99 payments, totaling around $450,000, lacking supporting check images, raising concerns about financial transparency.

The discussion highlighted the importance of identifying missing records as part of the financial review process. The council was informed that an analysis of the general ledger and check register uncovered 24 checks that appeared to be missing. Further investigation revealed that 17 of these checks were pre-signed by the board secretary and treasurer in 2021 due to health-related issues and were being held securely in the office of Mr. Gentry. Additionally, a letter from March 2022 confirmed that six other checks were also being held in the same office. However, one check from 2012 remains unaccounted for, with no documentation available.

The meeting also addressed employee compensation practices, noting that some compensation items were paid directly to employees by the Crockett Economic and Industrial Development Corporation (CEIDC), rather than following the standard payroll process where the city pays employees and CEIDC reimburses the city. This deviation from protocol raised questions about the consistency and oversight of financial practices.

Overall, the discussions underscored the need for improved record-keeping and adherence to established financial procedures to ensure accountability and transparency in city operations. The council is expected to take further steps to address these issues in upcoming meetings.