Ronald L.

Jones, Chief Examiner

14-051





Special Report on the

Madison County Commission

Madison County, Alabama

December 1, 2005 through December 31, 2012





Filed: March 21, 2014


Department of
Examiners of Public Accounts
50 North Ripley Street, Room 3201
P.O. Box 302251
Montgomery, Alabama 36130-2251
Website: www.examiners.alabama.gov

State of Alabama
Department of
Examiners of Public Accounts
Ronald L. Jones
Chief Examiner
P.O. Box 302251, Montgomery, AL 36130-2251
50 North Ripley Street, Room 3201
Montgomery, Alabama 36104-3833
Telephone (334) 242-9200
Honorable Ronald L. Jones
Chief Examiner ofPublic Accounts
Montgomery, Alabama 36130
Dear Sir:
FAX (334) 242-1775
Under the authority of the Code of Alabama 1975, Section 41-5-21, I submit this
special report on the results of the examination of the Madison County Commission,
Madison County, Alabama, for the period December 1, 2005 through December 31, 2012.
and subscribed before me this
the - day of '(Y'nj\m , 20
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14-051
Respectfully submitted,

Lynn Willis Brown
Examiner ofPublic Accounts

Table of Contents
Page
Madison County
Commission

Summary A

Contains items pertaining to state and local legal compliance.

Schedule of State and Local Compliance and Other Findings C

Contains detailed information about findings pertaining to state
and local legal compliance, and other findings.

Additional Information 1

Exhibit #1 Commission Members and Administrative Personnel a listing
of the Commission members and administrative personnel. 2

Exhibit #2 Schedule of Charges a schedule that provides details on
amounts that officials or employees of the Commission have
been asked to repay. 3

Order of the Chief Examiner 5
___________________________________________

14-051
A

Department of
Examiners of Public Accounts



SUMMARY


Special Report on the
Madison County Commission
December 1, 2005 through December 31, 2012


The Madison County Commission (the Commission) is governed by a seven-member body
elected by the citizens of Madison County. The members and officials in charge of governance
of the Commission are listed on Exhibit 1. The Commission is the governmental agency that
provides general administration, public safety, construction and maintenance of county roads
and bridges, sanitation services, health and welfare services and educational services to the
citizens of Madison County.

This report presents the results of a special examination of the Madison County Commission
and a review of compliance with applicable laws and regulations in accordance with the
requirements of the Department of Examiners of Public Accounts under the authority of the
Code of Alabama 1975, Section 41-5-14. This examination was performed at the request of
the Madison County Commission to determine whether inappropriate use of public funds
occurred in a bank account maintained at one of the Commissions district road offices.

Findings are numbered and reported by the fiscal year in which the finding originally
occurred.

Instances of noncompliance with state and local laws and regulations and other matters were
found during the audit as shown on the Schedule of State and Local Compliance and Other
Findings and they are summarized below.

CURRENT FINDINGS

2012-01 relates to the Commissions failure to include all bank accounts and activity in
the records of the Commission.

2012-02 relates to unallowable expenditures and the lack of documentation for numerous
expenditures.

2012-03 relates to funds received for private work contracts which were improperly
deposited to an account maintained by a district road office. Additionally, some receipts
were never deposited.

14-051
B

As reflected on Exhibit 2, the charges against a former Commissioner and employee resulted
from undocumented expenditures and amounts collected for private work contracts which
were not deposited. Official demand was made on the former Commissioner and employee
requesting payment in the amount of $176,770.74. At a meeting with the Chief Examiner, the
former Commissioner and employee failed to show just cause as to why the amounts should
not be paid; therefore, relief was denied as evidenced by the Order of the Chief Examiner
contained in this report. The charges remain due and unpaid and, as a result, this report will
be certified to the District Attorney for collection.

The following officials/administrative personnel were invited to an exit conference
to discuss the contents of this report: Dale Strong, Chairman of the Madison County
Commission; Mike Gillespie, former Chairman; Commission Members: Roger J ones,
Faye Dyer, J erry Craig, Phil Riddick, Robert Harrison, Steve Haraway, Eddie Sisk,
Phil Vandiver, and Morris Brooks; Kevin J ones, County Administrator; Howard Baites,
former County Administrator; and J udy Teague and Nancy Beams, former Chief Financial
Directors. The following individuals attended the exit conference, held at the offices of the
Madison County Commission: Dale Strong, Chairman; Commission Members: Roger J ones,
Faye Dyer, J erry Craig, Phil Riddick, Robert Harrison, Steve Haraway, Eddie Sisk, and
Phil Vandiver; Kevin J ones, County Administrator; and representatives of the Department of
Examiners of Public Accounts: Suzy Berryman, Audit Manager; and Lynn Brown, Examiner
of Public Accounts.

C

Schedule of State and Local
Compliance and Other Findings
Schedule of State and Local Compliance and Other Findings
For the Period December 1, 2005 through December 31, 2012
Madison County
Commission
D

Ref.
No.

Finding/Noncompliance
2012-01 Finding:
An adequate system of internal controls requires all funds held in the
Commissions name be reflected on the Commissions books. District 3 East
road department maintained a bank account at the district office which was
intended to be used for donations and disbursements pertaining to a fishing rodeo.
This account was not included on the books maintained by the County
Commission.

Recommendation:
All funds and accounts held in the Commissions name should be reflected on the
Commissions books.
2012-02 Finding:
An adequate system of internal controls requires procedures to ensure all
disbursements are made for allowable expenditures. Testing of expenditures of
the Madison County Fishing Rodeo Fund account revealed the following:

Numerous purchases totaling $65,408.06 appeared to be of a personal
nature and no supporting documentation was provided. These purchases
included payments to grocery stores, department stores, home
improvement stores and other miscellaneous purchases.
Undocumented cash withdrawals totaling $70,848.07 were made from this
account.
ATM fees totaling $411.50 for undocumented cash withdrawals were
charged to the account.
Undocumented checks totaling $11,520.00 were written to Cash.
Undocumented checks totaling $8,836.00 were written to the husband of a
former employee.
Bank fees, service charges and overdraft fees totaling $1,300.63 were
incurred.
Purchases totaling $1,543.14 were made for items which a former
Commissioner used to cook at an event for the City of New Hope. These
items were subsequently reimbursed to the former Commissioner by the
City of New Hope but were not redeposited in the account.

These items are reflected on the Schedule of Charges (Exhibit 2).

Recommendation:
The Commission should implement procedures to ensure all disbursements are
made for allowable items.



Schedule of State and Local Compliance and Other Findings
For the Period December 1, 2005 through December 31, 2012
Madison County
Commission
E

Ref.
No.

Finding/Noncompliance
2012-03 Finding:
An adequate system of internal controls requires procedures to ensure all receipts
are deposited intact. The Commission is authorized under the provisions of Act
Number 80-643, Acts of Alabama to enter into contracts with churches,
individuals, firms or corporations for road related services on private property.
Receipts for private work contracts collected by the road departments were to be
submitted to the Commission office for deposit. However, numerous receipts in
the District 3 East road department for private work contracts were improperly
deposited into the Madison County Fishing Rodeo Fund account. Additionally,
contracts totaling $16,903.34 for private work were not submitted to the
Commission or deposited into the Fishing Rodeo account. This amount is
reflected on the Schedule of Charges (Exhibit 2).

Recommendation:
All funds received from private work contracts should be submitted to the
Commission for deposit.

This Page Intentionally Blank

Madison County
Commission
1
Additional Information
This Page Intentionally Blank
Commission Members and Administrative Personnel
December 1, 2005 through December 31, 2012
Madison County Exhibit #1
Commission
2





Commission Members Term Expires

Hon. Mike Gillespie Chairman 2012

Hon. Roger J ones Member 2016

Hon. Faye Dyer Member 2012

Hon. J erry Craig Member 2012

Hon. Dale W. Strong Member/Chairman 2016 (*)

Hon. Phil Riddick Member 2016

Hon. Robert C. Harrison Member 2016

Hon. Steve Haraway Member 2016

Hon. Eddie Sisk Member 2016

Hon. Phil Vandiver Member 2016

Hon. Morris Brooks Member 2010

Administrative Personnel

Mr. Howard Baites Administrator Retired 11/2012

Mr. Kevin J ones Administrator Appointed 11/2012

Ms. J udy Teague Chief Financial Director Retired 02/2012

Ms. Nancy Beams Chief Financial Director 09/28/2012

(*) Dale Strong became Chairman in November 2012.



Madison County
Commission 3 Exhibit #2
Schedule of Charges
December 1, 2005 through December 31, 2012
Amount
Person/Official Charged Date Charged
Jointly Charged to:
J erry Craig, Former Commissioner - District 3
Kay Sims, Former Employee - District 3 12/01/2005-12/31/2012 411.50 $
12/01/2005-12/31/2012 70,848.07
12/01/2005-12/31/2012 65,408.06
12/01/2005-12/31/2012 1,543.14
12/01/2005-12/31/2012 11,520.00
12/01/2005-12/31/2012 8,836.00
12/01/2005-12/31/2012 1,300.63
10/01/2010-12/31/2012 16,903.34
Total J oint Charges 176,770.74 $
Madison County
Commission 4 Exhibit #2
Amount
Relieved
Amount By Chief Amount
Paid Examiner Unpaid Description of Charge
$ $ 411.50 $ ATM fees on undocumented cash withdrawals.
70,848.07 Undocumented cash withdrawals from ATM.
65,408.06 Undocumented expenditures using Madison County
Fishing Rodeo Bank Account and Debit Card.
1,543.14 Expenditures for which Mr. Craig was
reimbursed by the City of New Hope.
11,520.00 Undocumented checks written to "Cash".
8,836.00 Undocumented checks written to Alton Sims,
husband of former employee.
1,300.63 Bank fees, service charges and overdraft fees on
undocumented expenditures.
16,903.34 Private work contracts not deposited.
$ $ 176,770.74 $
This Page Intentionally Blank



5
Order of the Chief Examiner
Ronald L. Jones
Chief Examiner
Mailing Address:
P.O. Box 302251
Montgomery, AL 36130-2251
State of Alabama
Department of
Examiners of Public Accounts
Telephone (334) 242-9200
FAX (334) 242-1775
ORDER OF THE CHIEF
Location:
Gordon Persons Building
50 North Ripley Street, Room 3201
Montgomery, AL 36104-3833
RE: Special Report- Madison County Commission
December 1, 2005 through December 31,2012
This matter coming to be heard the 28th day of February 2014, pursuant to
the provisions of the Code of Alabama 1975, Section 41-5-22, and the former County
Commissioner and former County employee having failed to appear at the hearing before the
Chief Examiner, the Chief Examiner is of the opinion that the former County Commissioner and
former County employee has failed to show just cause why the charges should not be paid.
Therefore, relief from these charges is accordingly denied.
Entered this the 4th day of March, 2014.
Ronald L. Jones
CHIEF EXAMINER