MONTGOMERY — The Alabama Attorney General's Office should open an investigation into Smith Warren Management for "stealing money" from licensing boards, according to State Rep. Matt Simpson (R-Daphne).
Smith Warren Management is a private company that contracts with multiple state occupational licensing boards to provide administrative services.
A state audit of one of those boards the company managed, the Board of Electrical Contractors, was released on Wednesday.
The audit found that "on May 2, 2022, the Board purchased a 2017 Chevrolet Tahoe at a cost of $32,500.00. The Board utilized this vehicle to run errands and pick up mail from the Central Mail Room. After the Board's purchase of the vehicle, the Board's investigator continued to travel around the state performing investigative duties in a personal vehicle and claim mileage reimbursement, rather than using the Board's vehicle. Subsequently, on January 31, 2024, the Board purchased a 2023 Ford F-150 at a cost of $56,696.00 and assigned it to the investigator."
The audit also found that the board paid for services that should have been included in the contract with Smith Warren. The contract was to provide administrative services and facilities, including an executive director, staff, investigators, legal assistant, finance and accounting, offices, equipment, conference room, and any other services to facilitate the licensing and regulation of electrical contracting at a cost of $42,500.00 per month ($510,000.00 per year).
Additional costs billed to the board were $30,868.53 for an investigator, $44,430.47 for a "policy director/state government liaison," and $6,962.96 in employee benefits for the two employees.
Simpson told 1819 News on Wednesday that Smith-Warren "double billed" the Board of Electrical Contractors.
Simpson asked at a sunset prep committee meeting on Wednesday for the Examiners of Public Accounts to "turn the information over to the Attorney General's Office for an investigation into Smith-Warren and what they're doing for how they're stealing money from these boards."
"They also purchased a Tahoe and then billed mileage which you can't do. It's pretty bad," Simpson said. "Smith-Warren and this agency… we've seen a lot of their work, and a lot of their work has come into question, and there's just a lot of red flags that have come up in the more and more we've seen of Smith Warren."
Simpson continued, "They're already charging $510,000 a year to perform those services then they went behind that and charged them again to perform those services."
State Sen. Linda Coleman-Madison (D-Birmingham) said at the meeting, "I'm looking at responsibility on the board's side as well."
"Their terms have all expired, but this flag was not raised by any of the board members, and that's their responsibility as far as oversight. I think we really need to take a forensic look at this board because there's a fiduciary responsibility that the board has that they failed, in my opinion, on this. Dropped the ball on more than one occasion. This is not just little things," Coleman-Madison said.
The Board of Electrical Contractors voted to drop its administrative services contract with Smith Warren in August. In September, the board announced Tiffany Loveless as its new executive director at a meeting in Montgomery. Loveless will handle the board's administrative services. Loveless also currently serves as the executive director of the Alabama General Contractors Board.
Keith Warren, owner of Smith Warren Management, told 1819 News on Wednesday he hadn't seen the audit yet.
"I will be glad to answer any questions presented regarding the administrative services fee for the Electrical Contractors Board, services provided. Please note, administrative services fees were withheld by Smith Warren beginning June 1, 2024, through the end of the contract that expired on September 30, 2024. I appreciate Rep. Simpson and the Committee's responsibility in seeking answers to their questions; however, I have not seen nor was I provided with a copy of the report," Warren said.
To connect with the author of this story or to comment, email caleb.taylor@1819News.com.
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