Report: former Jellico employee stole nearly $100,000 from city

Report: former Jellico employee stole nearly $100,000 from city

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Linda Douglas (source: TBI) Linda Douglas (source: TBI)
JELLICO (WATE) - A new report claims the former Jellico city reporter took more money from the city than originally reported.

The Tennessee State Comptroller's office alleges Linda Douglas took at least $96,449.62 in public funds for her own personal use.

Previous story: Former Jellico city employee charged with theft

The Comptroller says Douglas misspent the town's money in a variety of ways during the two-year people investigated. Officials say she pocketed about $80,000 worth of cash and checks collected from Jellico citizens. She also received unauthorized payroll checks and was reimbursed for unauthorized travel expenses and fuel purchases.

The report says Douglas was able to take the money because she was given sole responsibility for receiving checks and cash, maintaining accounting records, and depositing the money she collected.

The state says these duties should be divided among multiple employees so they can check each other's work.

Douglas was indicted last month of charges of theft over $60,000 and official misconduct.

The investigation also revealed more than $16,000 in questionable expenses made by various other employees over the same two year period, including fuel purchases, items bought from vendors, and credit card expenses that may not have been related to city business.

The report noted a number of other problems with Jellico's accounting and management practices, including poor record keeping of financial transactions, deficiencies in purchasing procedures and a lack of written policies for garbage fee collections and cellular telephone use by city employees.

The investigative report, which was released today, noted a number of other problems with Jellico's accounting and management practices, including poor record keeping of financial transactions, deficiencies in purchasing procedures and a lack of written policies for garbage fee collections and cellular telephone use by city employees.

More online: Read the full investigation report [PDF]

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