The Wedowee Utilities Board heard from an accountant at MDA Professional Group, the company that performed an audit that revealed years of possible financial mismanagement.
Six months after results from a preliminary audit report were made public during a Wedowee Town Council meeting, accountant Kim Stallings reviewed the findings at a special-called meeting.
Stallings confirmed the audit from the 2023-2024 time period found issues with payroll records, overtime, bonuses, and millions in losses, as previously reported. Auditors were unable to gain access to certain documents. At the time, the Wedowee Utilities Board was under former board chairman and current Wedowee Mayor Tim Coe and was managed by Brenda Boone. A new board has since been appointed and Boone has been fired.
“As indicated in the company financial statements, the board has incurred significant net losses for the past five consecutive years totaling $2,546,096 along with a deficit net position of $8,834,125 as of Dec. 31, 2024,” Stallings read from the report. “The losses each year have primarily resulted from aging infrastructure, increased maintenance and repair costs, increased payroll overtime hours, and employee bonus expenses, water treatment plant operations and regulatory compliance expenditures.”
Bonuses during the time period totaled $96,000, despite the operating deficit. Those bonuses were processed as vendor checks without proper tax reporting, according to the findings.
The findings presented were from an independent audit. The state’s Examiners of Public Accounts office has completed an audit following the announcement of an investigation into the utility by the Alabama Attorney General’s Office. Those audit results have not been reported.
New utility director Randy Benefield told the board changes have been made to ensure proper management moving forward, including the addition of new policies. Stallings said the new board has also made diligent efforts to correct audit findings and provide requested documentation.
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