TLDR:

Gibson County government in Tennessee faces financial weaknesses and costly mistakes according to the annual audit conducted by the Tennessee Comptroller’s Office. The audit report highlights deficiencies, weaknesses, and noncompliance within the Office of the County Mayor, Office of Trustee, and Sheriff’s Office. Of particular concern were failures to comply with federal reporting requirements for grant money received during the pandemic, resulting in $109,463 being withheld by the U.S. Department of Treasury. In addition, the county’s finance director failed to deposit checks on time, with three checks totaling $11,920 currently missing. The financial management of Gibson County has deteriorated over the past two years, prompting the Comptroller to encourage county leaders to take action and utilize audit committees and management oversight to address the situation.

Gibson County audit reveals financial weaknesses and costly mistakes

The Tennessee Comptroller’s Office has completed its annual audit of Gibson County government for the fiscal year ending on June 30, 2023, and the results show that improvement is needed in the county’s financial operations. The audit report includes six findings that outline deficiencies, weaknesses, and areas of noncompliance within the Office of the County Mayor, which employs the county finance director. Two additional findings relate to the Office of Trustee and Sheriff respectively.

• Auditors found that Gibson County officials failed to comply with federal reporting requirements for grant money received during the pandemic. The failure to report and subsequent failure to provide an explanation has resulted in $109,463 that is being withheld from the county by the U.S. Department of Treasury.
• The county’s finance director also failed to deposit checks on time, and three checks totaling $11,920 are currently missing. The checks have been received by the county, have not been deposited, and have not cleared with the grantor.
• Additional issues include financial statements that required material audit adjustments at year-end, indicating a serious accounting weakness in the bookkeeping office.
• The General Capital Projects fund had a cash overdraft of $107,965 at June 30, 2023 because checks were issued that exceeded the cash on deposit with the county trustee.
• The office had deficiencies in its budget operations, with expenditures exceeding the appropriations approved by the county commission.

“Just two years ago Gibson County had a clean audit without any findings,” said Comptroller Jason Mumpower. “It’s concerning to see the county’s financial management heading in the wrong direction. I encourage county leaders to utilize its Audit Committee and management oversight to improve the situation.”

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