Nonprofit takes taxpayer money, with no results to show — six years later

Nonprofit takes taxpayer money, with no results to show — six years later:

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Nonprofit takes taxpayer money, with no results to show — six years later

By TNWatchdog Staff On February 17, 2012
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By CHRISTOPHER BUTLER

Polk County officials gave $50,000 to a nonprofit that was formed to raise money to build a new library — but that was six years ago, and there is still no formal agreement to construct a library.

Furthermore, four years have passed since county officials formally requested in a lawsuit that the nonprofit, known as Friends of the Library, give the money back. For unknown reasons, county officials dropped that lawsuit less than two weeks later. They have taken no further action on the matter, according to a new audit from the state Comptroller’s Office that is critical of the arrangement.

A message left with Friends of the Library Chairwoman Sally Love was not returned.

The county currently has a part-time library with an all-volunteer staff. Friends of the Library members want to move that library into another building.

Polk County Courthouse

Instead of constructing a new building, as it originally planned, the Friends of the Library nonprofit has now changed its mind. The organization is now interested in remodeling an already existing building elsewhere into a new full-time library — six years after it took taxpayers’ money. Another tenant, however, still occupies that building, and any plans to renovate it into a library are very tentative, said County Executive Mike Firestone.

“If the Friends of the Library still want to pursue this project, then they could use those funds toward remodeling. The commission has made no commitment one way or the other on this (library) issue, and it’s still a work in progress,” Firestone said.

Tennessee Watchdog asked Firestone if commissioners will ask Friends of the Library to return taxpayers’ money to the county, should this tentative agreement fall through.

Will county officials ever try to get taxpayers’ money back if the nonprofit fails to make a firm commitment on a new library?

For those questions, Firestone referred Tennessee Watchdog to County Commission Chairman Mike Curbow.

Curbow said he and other commissioners are scheduled to discuss the library issue next week.

“Without talking to the rest of the commissioners, I’m not sure we’re going to try to get that money back. I wouldn’t want to speak without input from the whole commission. I’m not sure what everyone else is thinking,” Curbow said.

In their report, auditors questioned the wisdom of the agreement.

“By providing county funds to the nonprofit organization and allowing the nonprofit to control the construction of a building to house the county library, the nonprofit may not follow county purchasing laws and regulations. Also, questions arise as to the timing and planning of this project.”

The matter concerning the library construction costs is only one of many negative findings in the new audit.

Among the other findings, which include numerous flaws in the county’s accounting and record-keeping practices:

• Several employees had accrued vacation leave balances that exceeded the 15-day maximum balance established by the county’s personnel policy.

• General Fund expenditures exceeded appropriations approved by the County Commission in the Contributions to Other Agencies major appropriation category by $6,639.

• General Purpose School Fund Expenditures exceeded appropriations approved by the County Commission in the Fiscal Services major appropriation category by $8,010.

• In eight different offices within the county government, responsibilities for money collection, handling and record-keeping were not properly separated.

• In four different offices, multiple employees operated out of the same cash drawers.

“Failure to assign each employee a separate cash drawer reduces accountability if money is lost or stolen,” Comptroller Justin Wilson said in the report.

Curbow did not address the Comptroller’s findings with Tennessee Watchdog.

“I haven’t had a chance to read the audit yet,” Curbow said.

Christopher Butler is the editor of Tennessee Watchdog and the Director of Government Accountability for the Beacon Center of Tennessee. Contact him at chris@beacontn.org

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Posted under Government Waste, Misuse of funds, News.

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