Newly appointed Wedowee Utilities Board chairman Barry Waldrep reviewed information from an audit of the utility following concerns of mismanagement and an investigation by the Alabama Attorney General’s Office.
“We are doing our civic duty to stand for the citizens of this community,” Waldrep said in a meeting on Wednesday morning. “We must restore the Utility Board for the people. According to the accountant, it is months away from bankruptcy.”
Waldrep started the meeting by reading audit findings, revealing information on claims of unpaid taxes, payroll processing, employee bonuses, lack of oversight, lack of documentation, operating losses and related party relationships.
Accountants stated in the report that employee bonuses were paid as vendor checks, totaling $48,000 in 2022, 2023 and 2024.
“These checks were processed as vendor checks rather than through payroll, excluding them from required tax with relevance and W-2 reporting,” Waldrep read from the incomplete audit. “The board of directors’ approval of the bonuses was not documented in the meeting minutes. Improper bonus processing results in inaccurate tax reporting and exposes an entity to potential penalties for incompetence, for non-compliance.”
Other notes revealed were:
- Limited oversight of management, bookkeeping, payroll processing and reconciliation of duties, increasing
- No independent documented board of directors’ review of monthly bank reconciliations or bank statements.
- Lack of segregation of duties increases the risk that errors, unauthorized transactions or fraud could occur and remain undetected.
- No adequate internal control over employee timesheets
- Overtime approved without sufficient documentation of work performed
- Billing, revenues not recorded in QuickBooks on routine basis
- - Bank reconciliations not performed on routine, monthly basis
- Board in default under installment purchase agreement, allowing creditors to demand full repayment or pursue receivership of utility
- Water and sewer rate increases to cover third-party agreement to manage Wedowee Water Treatment Plant
- Sustained operating losses threaten long-term financial stability, may impair ability to maintain operations, meet debt obligations
- No written conflict of interest policy requiring annual related-party relationship disclosures
Waldrep asked Wedowee Utility employees who is currently in charge of operations. Employees said there “really isn’t one person in charge,” but that suspended bookkeeper Brenda Boone was the point person for the utility’s finances and computer system.
The new administrator of Wedowee Utilities is Jim Hall. However, Waldrep said he is unsure who the administrator was before the new board was appointed.
At the last board meeting, Boone requested a meeting with the auditors and stated she had provided all the requested documents. However, Waldrep said the auditors wrote, “Mr. Waldrep, We have determined that a meeting with the utility board staff would not be productive at this time. We provided information to the office manager multiple times over the years relating to audit findings and still have not received updates or responses to solve the discrepancies noted.”
The auditors stated they will continue to communicate with utility board members and have requested more information.
The meeting continued with questions from Waldrep on hiring practices, advance pay and changes to the utility’s bylaws. He also revealed more financial findings that he is currently addressing.
A $500,000 CD owned by Wedowee Utilities Board was in the name of the Town of Wedowee. However, Waldrep said that was a mistake by the bank and has been put into the name of the utility. The CD, issued in 2002, was renewed on May 14, 2007, and has not been addressed since.
“There has been no maintenance done on the CD since May 14, 2007, when it matured,” Waldrep said. “It has been sitting there for 18 years and 8 months, drawing 0.9%, and no one has went to do anything with it.”
Waldrep said the minimum amount lost due to inaction is $351,274.40. He claims he found more wasted money due to bank fees, amounting to nearly $2,000 a month. Waldrep said that although Boone stated there have been audits for the last 20 years, there are missing audits from 2014 to 2018. He also revealed that the water, sewer, and gas board settled a 2021 lawsuit by the Alabama Attorney General’s Office for $61,500 in civil penalties.
Waldrep presented an IRS letter of intent to levy $15,766.38. That was paid in October 2025.
Although several checks remain in question, Boone was not present at the meeting, so Waldrep elected to end questioning.
The board approved the following policy changes:
- Gas pump code device installed
- Purchase orders on every purchase
- Timesheet verification
- Tracking devices on utility vehicles
- Vehicles only used for business purposes
- Mandatory drug tests for all employees
- Employees to handle themselves in professional manner
- Board to receive monthly financial statements
- Move checking accounts to free checking
Waldrep said moving forward, the new board will continue to operate in the public’s interest, listen to public concerns and be transparent on financial matters.
The AG’s office is handling the investigation into Wedowee Utilities, while the State Examiner’s Office will be in Wedowee on Thursday to begin a financial audit.
No charges have been filed against any party. All involved are presumed innocent at this time.
The Wedowee Town Council will meet next Tuesday, during which Waldrep will provide updates.
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