By Erica Thomas, 1819 News
Wedowee Mayor Tim Coe was removed from the Wedowee Utilities Board on Tuesday amid a barrage of concerns over operations. Now, council members want to take a closer look at the town’s finances to ensure fiscal responsibility.
Coe served for nine years on the board, although board terms are set at six years.
Preliminary findings from an audit showed multiple serious internal control weaknesses, financial mismanagement, compliance violations and governance issues. Recommendations included seeking legal counsel, establishing financial oversight and undergoing training on the Alabama Open Meetings Act.
The Town Council approved replacing Coe with local businessman Barry Waldrep.
“I’ve stumbled into some information about our Utility Board that’s rather disturbing and that basically indicates very, very lacking, in terms of management,” Councilman Jerry Huddleston said as he presented notes from the audit.
The notes list a negative operating loss of over $1.5 million over the past five years. Still, with that loss, excessive overtime and bonuses were paid.
Several years of overtime bonuses were paid as vendor checks and did not go through payroll, according to the audit. The bonuses were not reported on W-2 forms, and no tax was withheld. The audit further noted inadequate control over timesheets and work hour documentation. Just three employees accounted for 90% of the overtime hours in 2024, totaling $147,500.
Other notes include improper reversal of RSA retirement contributions, unpaid federal payroll taxes, lack of bookkeeping oversight, no board review of bank activity, and the Utility Board is in default for nonpayment of required obligations under an Installment Purchase Agreement. According to the auditor’s recommendations, there are concerns that the default could allow creditors to demand full repayment or pursue receivership of the system.
Another issue that caught the auditor’s eye is that one-time fees are not documented in the billing software.
Huddleston recommended, and the Town Council approved, several measures to ensure better transparency.
“Since the same leadership is over the Utility Board and the Town of Wedowee, I make a motion that we contact the State Examiner’s Office and order a complete and detailed audit for the Town of Wedowee,” Huddleston said. “I’m just asking them to, we need to ask them to come in and audit the books.”
Huddleston said he is not confident in the city’s finances due to past issues. He claimed he has asked several times for copies of the town’s financials and has been unable to obtain them. The council then passed a motion requiring a monthly report with the beginning and ending bank balances, as well as checks, bills and transactions.
“We need complete transparency on everything,” Huddleston added.
Huddleston requested that a police patrol be placed outside the Wedowee Utilities building until the new board can meet.
“We need somebody making sure that no documents are destroyed and nobody walks out of there with anything,” Huddleston said. “I need an officer there full time.”
… I just don’t want, you know, I remember the instant in City Hall when the filing cabinet caught on fire and documents got burned up,” Huddleston said. “So, I’m just saying, I don’t want the same thing to happen here.”
Wedowee Utility Board member Veronica Austin was also replaced at the meeting by local farmer Richie Traylor. Huddleston thanked Austin for her service and emphasized she had nothing to do with the issues found in the audit.
No one in the town has been reported to the Ethics Commission or charged with a crime.
Reprinted with the permission of 1819news.com
