J.T. Smallwood, the tax collector for Jefferson County, is running for mayor of Trussville on a platform of "Moving Trussville Forward." However, records from the Alabama Department of Examiners of Public Accounts show that Smallwood has had little success in moving his current office forward. Instead, they cite an over-decade-long series of challenges his office has been warned of and maintained for "noncompliance with state and local laws and regulations."
Smallwood was elected in 2002. The first report covered the period from June 30, 2012, to June 30, 2017. It was filed with the state on October 2, 2020. The second covered the period from July 1, 2017, through July 8, 2022, and was finalized on March 29, 2024.
Both reports show that the Democrat, who found himself in the crosshairs of a federal judge for "egregious cronyism," had a long pattern of deficiencies.
Both reports begin by stating, "Honorable J. T. Smallwood served as Tax Collector during the examination period," and both include "Instances of noncompliance with state and local laws and regulations and other matters were found during the examination as shown on the Schedule of State and Local Compliance and Other Findings, and they are summarized below."
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In one finding in the 2024 report, a note indicates Smallwood was aware of a particular problem but neglected to fix it: According to the 2022-001 report: "The Tax Collector failed to properly maintain a cashbook, perform monthly bank reconciliations, or provide an analysis of amounts remaining on hand. This finding was previously reported as Findings 2017-002 and 2011-001."
There was a list of multiple problems included with this finding:
- The main check writing bank account used to disburse current collections has not been reconciled since September 2018.
- The check writing bank account for current petitions has not been reconciled since September 2020.
- The check writing bank accounts for insolvents and overpayments were reconciled through the end of the examination period, but not approved by upper management. Neither account provided an analysis of the amounts on hand.
- The check writing bank accounts for redemptions and litigations were reconciled and approved but did not provide an analysis of amounts on hand.
- A cashbook was not maintained for six bank accounts in the Tax Collector's software or a manual cashbook. Reconciliations were prepared by staff but an analysis of the amounts on hand was not prepared.
- A current collections bank account had not been reconciled since April 2022 and an analysis of the amounts on hand was not performed.
- A current collections bank account had not been reconciled since May 2022 and an analysis of the amounts on hand was not performed.
- Two bank accounts were reconciled and approved by upper management at the conclusion of the examination. Neither account provided an analysis of the amounts on hand.
- Three bank accounts were reconciled but not approved by upper management at the conclusion of the examination. None of the bank account reconciliations included an analysis of the amounts on hand.
- The credit card account did not have a bank reconciliation or cashbook maintained for the examination period.
- A current collections bank account had not been reconciled since September 2020.
The report also stated, "There were errors in the distribution of collections that resulted in amounts due and overpaid. Amounts due include amounts at the examination ending date which should have previously been remitted to the proper agencies. These amounts result from errors in the distribution of collections, failure to collect all costs that have been levied by a particular agency, or from calculation errors in the distribution reports. Amounts overpaid include amounts remitted to an agency by the Tax Collector in excess of amounts the agency was entitled to receive"
According to their website, "The majority of audit work performed by the Department consists of traditional financial and compliance audits, including Federal compliance. These audits focus on two areas: reliability and accuracy of financial statements; and compliance with laws, ordinances, regulations, and other requirements."
Smallwood has touted his experience as the tax collector in his run for mayor. The older report is just as direct with Smallwood's errors, with findings that say,
- 2017-001 relates to the Tax Collector’s failure to collect all costs, fees, and charges due for delinquent taxpayers.19-213 B A finding that was presented in a prior examination has not been resolved, as shown on the Schedule of State and Local Compliance and Other Findings, and it is summarized below.
- 2017-002 relates to the Tax Collector’s failure to reconcile the bank accounts to the cashbook in a timely manner and to provide adequate documentation for an analysis of balances on hand. This finding was previously reported as Finding 2011-001.
The election will be held on August 26. A run-off election, if necessary, will occur on September 23. According to the City's website, the organizational meeting for the new administration is scheduled for November 3. Other candidates for the position include Lisa Bright and Ben Short.
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