Local govs reported more than $657K missing in '09

Local govs reported more than $657K missing in '09

Posted:

NASHVILLE - A state comptroller report found outstanding cash shortages of more than half a million dollars in audits of local governments for the fiscal year ended June 30, 2009.

Most of the shortages were the result of employee theft, but the more than $657,000 shortage doesn't reflect total theft. In cases where stolen money was either written off or later repaid, that money was not counted as a shortage.

For instance, at the Bedford County Emergency Management Agency, an employee was convicted of embezzlement after $117,000 was discovered missing in fiscal year 2008. Eugene Nichols was ordered to pay $60,000 restitution. The county's insurance provider covered the remainder. The ending cash shortage for the report was zero.

Most of shortages go back no longer than fiscal year 2004, but one that was discovered over a decade ago appears on the report because it has yet to be completely repaid.

The largest single outstanding shortage was in the Fayette County School Food Service Department where more than $177,000 was discovered missing in fiscal year 2009.

The report is available on the state comptroller's website.

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On the Internet: http://www.comptroller1.state.tn.us/repository.CA.2009/CashShortagesReport09.pdf

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