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Public Notices

April 18, 2014

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Unauthorized Purchases, Missing Records Among Findings In Chuckey Utility District Audit

Originally published: 2014-01-09 13:04:21
Last modified: 2014-01-10 11:12:39

An annual audit released today reveals numerous material weaknesses and significant deficiencies at the Chuckey Utility District.

Among those weaknesses and deficiencies were unauthorized bonuses, unreliable or incomplete meeting minutes, unauthorized fuel purchases, inadequate control of credit card purchases, missing records and unauthorized loans.

Local Certified Public Accountant Mickey Ellis said in his report that he found nine material weaknesses and five significant deficiencies.

A “material weakness” is “such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis,” the audit says.

A “significant deficiency” is “less severe than a material weakness, yet important enough to merit attention by those charged with governance.”

The Chuckey Utility District, along with Cross Anchor Utility District, placed four employees on leave in October after Ellis reported preliminary findings that included “questionable practices by the management.”

Employees placed on leave include: former manager Shirley Collins; her husband, Willie; their daughter, Kandie Jennings, who became acting general manager after Shirley Collins retired; and Jennings’ husband, Bill.

For more details, see Friday’s edition of The Greeneville Sun.
For more information and stories, see The Greeneville Sun.

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