Report on the

DeKalb County Community Development Commission

DeKalb County, Alabama

November 1, 2014 through May 31, 2018

Filed: November 9, 2018

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

Rachel Laurie Riddle, Chief Examiner 18-377

State of Alabama Department of Examiners of Public Accounts P.O. Box 302251, Montgomery, AL 36130-2251 50 North Ripley Street, Room 3201 Montgomery, Alabama 36104-3833 Rachel Laurie Riddle Telephone (334) 242-9200 ChiefExaminer FAX (334) 242-1775

Honorable Rachel Laurie Riddle Chief Examiner of Public Accounts Montgomery, Alabama 36130

Dear Madam:

Under the authority of the Code of Alabama 1975, Section 41-SA-19, as added by Act Number 2018-129, I submit this report on the results of the examination of the DeKalb County Community Development Commission, DeKalb County, Alabama, for the period November 1, 2014 through May 31, 2018.

Respectfully submitted, ~(fB. Ashleigh 0. Bubbett Examiner of Public Accounts

18-377

Table of Contents Page

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.

Financial Information 1

Exhibit #1 Schedule of Cash Receipts, Disbursements and Balances 2

Exhibit #2 Detail of Disbursements 6

Exhibit #3 Members of the DeKalb County Community Development Commission 10 ______

DeKalb County Community Development Commission

Department of Examiners of Public Accounts

SUMMARY

DeKalb County Community Development Commission DeKalb County, Alabama November 1, 2014 through May 31, 2018

The DeKalb County Community Development Commission (the “Commission”) was established by Act Number 2007-363, Acts of Alabama, as amended by Act Number 2008-83, Acts of Alabama. In accordance with these Acts, the Commission receives a portion of the Tennessee Valley Authority’s payments in-lieu-of-taxes received pursuant to Act Number 2006-655, Acts of Alabama and, proceeds of state beer taxes as distributed to DeKalb County pursuant to Section 28-3-184, Code of Alabama 1975. These funds are to be expended for the purposes of promoting economic development, education, conservation, and fire protection for DeKalb County, Alabama.

The report represents the results of an examination of the funds received by the Commission and a review of compliance with applicable laws and regulations of the State of Alabama in accordance with the requirements of the Department of Examiners of Public Accounts under the authority of the Code of Alabama 1975, Section 41-5A-12, as added by Act Number 2018-129.

Findings are numbered and reported by the examination period in which the finding originally occurred.

An instance of noncompliance with state and local laws and other matters was found during the examination as shown on the Schedule of State and Local Compliance and Other Findings, and it is summarized below:

CURRENT FINDING

 2018-001 relates to the Commission’s failure to provide an adequate system of internal controls over the cash recording and reconciling processes.

18-377 A

A finding that was presented in prior examinations has not been resolved as shown on the Schedule of State and Local Compliance and Other Findings, and it is summarized below:

UNRESOLVED PRIOR FINDING

 2014-002 relates to the Commission’s failure to document majority approval and the public purposes of disbursements.

The Commission members, as reflected on Exhibit 3, were invited to discuss the results of this report at an exit conference held at the DeKalb County Courthouse. Individuals in attendance were: Commission Members: Ronnie Osborn, Bill Mitchell, and Debbie Sizemore; and representatives of the Department of Examiners of Public Accounts: Gwyn M. Griggs, Audit Manager, and Ashleigh O. Bubbett, Examiner of Public Accounts. The results of this examination were also discussed with Angie Bell Young and John Westmoreland over the telephone.

18-377 B

Schedule of State and Local Compliance and Other Findings

C

Schedule of State and Local Compliance and Other Findings For the Period November 1, 2014 through May 31, 2018

Ref. No. Finding/Noncompliance 2018-001 Finding: Management is responsible for designing and implementing internal controls to ensure that financial transactions are properly recorded. An adequate system of internal controls requires a cashbook be maintained to record all cash transactions. Bank statements should be reconciled to the cashbook balance monthly to ensure that cashbook transactions are properly recorded. The Commission’s cashbook was not accurately maintained to ensure all receipts and disbursements were correctly recorded. The bank reconciliations were not properly prepared to ensure that any errors could be identified and corrected timely.

Recommendation: The Commission should ensure that all cash transactions are properly recorded in the cashbook and the bank statements are reconciled to the cashbook monthly to ensure that any errors can be identified and corrected timely. 2014-002 Finding: Act Number 2008-83, Acts of Alabama, requires that funds be distributed by majority vote of the Commission for purposes of promoting economic development, education, conservation, and fire protection. The minutes of the Commission meetings did not always document the majority approval of disbursements and the public purposes they served.

Recommendation: The minutes of the Commission meetings should document the majority approval and public purposes of all the funds disbursed.

DeKalb County Community D Development Commission

Financial Information

1

Schedule of Cash Receipts, Disbursements and Balances November 1, 2014 through May 31, 2018

Senate Senate District 8 District 9 Steve Clay Livingston Scofield

Receipts TVA in-Lieu-of Taxes $ 353,937.65 $ 79,453.44 Beer Tax 146,606.97 32,886.43 Interest 181.40 42.02 Other 1,680.00 360.00 Total Receipts 502,406.02 112,741.89

Disbursements Administrative Expense 13,365.92 3,020.78 General Government 102,870.49 23,146.25 Public Safety 54,170.00 4,418.00 Health and Welfare 44,080.00 9,987.00 Culture and Recreation 64,814.37 6,289.56 Education 199,601.05 52,411.73 Total Disbursements 478,901.83 99,273.32

Operating Transfers In/(Out) Transfers In 16,212.70 Transfers Out (54,027.64) Total Operating Transfers (54,027.64) 16,212.70

Excess of Receipts Over/(Under) Disbursements (30,523.45) 29,681.27

Balances - November 1, 2014 129,686.92

Balances - May 31, 2018 $ 99,163.47 $ 29,681.27

DeKalb County Community Development Commission 2 Exhibit #1 House of House of Senate Representatives Representatives District 10 District 23 District 24 Phil Tommy Nathaniel Williams Hanes Ledbetter

$ 64,714.13 $ 3,895.35 $ 307,022.17 26,881.32 1,587.07 127,149.10 29.13 3.41 158.63 360.00 1,440.00 91,984.58 5,485.83 435,769.90

2,381.32 169.01 11,614.73 14,266.25 166.50 90,123.73 9,662.00 199.80 45,368.50 7,983.00 133.20 40,528.94 16,301.05 1,366.98 49,941.58 27,417.89 835.28 204,407.88 78,011.51 2,870.77 441,985.36

16,212.70 34,396.29

16,212.70 34,396.29

30,185.77 2,615.06 28,180.83

30,454.52

$ 30,185.77 $ 2,615.06 $ 58,635.35

DeKalb County Community Development Commission 3 Exhibit #1 Schedule of Cash Receipts, Disbursements and Balances November 1, 2014 through May 31, 2018

House of House of Representatives Representatives District 26 District 27 Kerry Will Rich Ainsworth

Receipts TVA in-Lieu-of Taxes $ 48,880.59 $ 40,914.36 Beer Tax 20,258.58 17,012.95 Interest 24.44 17.49 Other 240.00 240.00 Total Receipts 69,403.61 58,184.80

Disbursements Administrative Expense 1,836.50 1,490.85 General Government 12,172.76 15,082.26 Public Safety 8,402.30 2,993.70 Health and Welfare 5,718.22 5,445.82 Culture and Recreation 4,557.91 8,557.45 Education 25,089.51 31,256.34 Total Disbursements 57,777.20 64,826.42

Operating Transfers In/(Out) Transfers In 14,366.17 10,808.47 Transfers Out Total Operating Transfers 14,366.17 10,808.47

Excess of Receipts Over/(Under) Disbursements 25,992.58 4,166.85

Balances - November 1, 2014 (3,557.70)

Balances - May 31, 2018 $ 22,434.88 $ 4,166.85

DeKalb County Community Development Commission 4 Exhibit #1 House of House of Representatives Representatives District 29 District 39 Becky Richard Nordgren Lindsey Total

$ 53,793.72 $ 43,599.03 $ 996,210.44 22,260.29 18,106.73 412,749.44 28.75 19.82 505.09 240.00 240.00 4,800.00 76,322.76 61,965.58 1,414,264.97

2,049.58 1,607.19 37,535.88 12,632.76 3,697.00 274,158.00 7,654.30 7,131.40 140,000.00 5,886.22 16,737.60 136,500.00 12,220.75 8,510.35 172,560.00 31,134.68 17,648.64 589,803.00 71,578.29 55,332.18 1,350,556.88

91,996.33 (7,030.27) (30,938.42) (91,996.33) (7,030.27) (30,938.42)

(2,285.80) (24,305.02) 63,708.09

17,838.74 41,746.89 216,169.37

$ 15,552.94 $ 17,441.87 $ 279,877.46

DeKalb County Community Development Commission 5 Exhibit #1 Detail of Disbursements November 1, 2014 through May 31, 2018

Community Development Commission

Administrative Expenses Bookkeeping Expenses $ 28,702.00 Office Supplies 222.22 Miscellaneous 8,611.66 Total Administrative Expenses 37,535.88

General Government City of Fort Payne 30,000.00 City of Henagar 15,494.00 City of Rainsville 50,494.00 DeKalb County Commission 5,000.00 Fort Payne Chamber of Commerce 2,500.00 Town of Collinsville 14,000.00 Town of Crossville 24,500.00 Town of Fyffe 20,000.00 Town of Geraldine 38,170.00 Town of Hammondville 7,000.00 Town of Ider 11,000.00 Town of Mentone 13,000.00 Town of Powell 28,000.00 Town of Shiloh 3,000.00 Town of Sylvania 9,000.00 Town of Valley Head 3,000.00 Total General Government 274,158.00

Public Safety Adamsburg Volunteer Fire Department 4,500.00 Aroney Fire Protection Authority 4,000.00 Blake Fire Protection Authority 8,000.00 Cartersville Fire Department 3,000.00 Collinsville Police Department 5,000.00 Collinsville Volunteer Fire Department 6,000.00 Crossville Fire Department 1,500.00 DeKalb County Association of Rescue Squads 10,000.00 DeKalb County Sheriff's Office 2,000.00 DeKalb County Volunteer Fire Association 3,000.00 Desoto Rescue Squad 12,000.00 Dogtown Volunteer Fire Department $ 3,500.00

DeKalb County Community Development Commission 6 Exhibit #2 Detail of Disbursements November 1, 2014 through May 31, 2018

Community Development Commission

Public Safety (continued) Fort Payne Fire and Rescue $ 8,500.00 Fort Payne Police Department 8,000.00 Fort Payne Water Works 1,000.00 Geraldine Fire Department 8,500.00 Geraldine Rescue Squad 2,500.00 Hammondville Volunteer Fire Department 2,000.00 Ider Police Department 3,000.00 Ider Volunteer Fire Department 3,000.00 Ider Rescue Squad 10,000.00 North Lookout Mountain Fire Protection District 1,000.00 Pine Ridge Fire Protection Authority, Inc. 2,500.00 Rainsville Fire and Rescue 5,500.00 Rainsville Police Department 2,500.00 Shiloh Volunteer Fire Department 4,000.00 Sylvania Volunteer Fire Department 5,000.00 Tenbroeck Fire Department 2,500.00 Valley Head Police Department 8,000.00 Total Public Safety 140,000.00

Health and Welfare Bread of Life 1,000.00 Care Assurance System for the Aging 5,500.00 Cherokee Etowah DeKalb Mental Health 23,200.00 Challenges Met Therapeutic Riding School 6,000.00 DeKalb Children's Advocacy Center 52,000.00 DeKalb Coalition Against Domestic Violence 1,500.00 DeKalb County Department of Human Resources 2,500.00 DeKalb County Foster Care Association 2,000.00 DeKalb County Foundation on Aging 7,500.00 DeKalb Economic Development Authority 17,500.00 Drug Abuse Resistance Education 10,800.00 March of Dimes 1,000.00 North Alabama Family Services 2,000.00 Relay for Life 4,000.00 Total Health and Welfare $ 136,500.00

DeKalb County Community Development Commission 7 Exhibit #2 Detail of Disbursements November 1, 2014 through May 31, 2018

Community Development Commission

Culture and Recreation America Legion Post 183 $ 7,000.00 Big Wills Art Council 5,000.00 Boy Scouts of America 16,100.00 Collinsville Dixie Youth Baseball 300.00 Collinsville Historic Association 12,700.00 Collinsville Library 2,500.00 Collinsville Senior Center 4,000.00 Crossville Library 3,750.00 Crossville Senior Center 2,000.00 Crossville Youth Baseball 900.00 Crossville Youth Softball 900.00 Daughters of the American Revolution 500.00 DeKalb County Farmers Market 3,000.00 DeKalb County Park Board 10,000.00 DeKalb County Public Library 5,000.00 DeKalb County Tornado Monument Memorial 1,000.00 DeKalb Leadership 10,750.00 Desoto State Park 2,500.00 Fort Payne Depot Museum 3,000.00 Fort Payne Kiwanis Club 4,000.00 Fort Payne Main Street 1,500.00 Fort Payne Optimist Club 11,500.00 Fort Payne Rotary Club 9,160.00 Fort Payne Three Arts Club 500.00 Fyffe Quarterback Club 2,500.00 Fyffe Senior Center 1,000.00 Henagar Public Library 5,000.00 High Falls Park Board 2,500.00 Ider Senior Center 2,500.00 Landmarks of DeKalb County 2,000.00 Mentone Area Preservation Association 13,500.00 NE Alabama Marine Corps League Detachment 1404 6,500.00 Patriots Memorial Park 500.00 Rainsville Library 3,500.00 Rainsville Pee Wee Football 1,000.00 Rodentown Community Center 1,500.00 Sylvania High School Diamond Club 7,500.00 United Sacred Harp Musical Association 3,000.00 Valley Head Athletic Club 500.00 Veterans of Foreign Wars Post 3128 2,000.00 Total Culture and Recreation $ 172,560.00

DeKalb County Community Development Commission 8 Exhibit #2 Detail of Disbursements November 1, 2014 through May 31, 2018

Community Development Commission

Education Alabama Sports Officials Foundation $ 1,000.00 Collinsville High School 57,700.00 Cornerstone Christian Academy 15,000.00 Crossville Elementary School 4,500.00 Crossville High School 6,000.00 Crossville Middle School 3,950.00 DeKalb County Board of Education 11,750.00 DeKalb County Child Development Center 7,000.00 DeKalb County Extension Office 15,500.00 DeKalb County Technical School 17,000.00 DeKalb County Youth Services 15,000.00 Fort Payne High School 49,500.00 Fyffe High School 53,000.00 Geraldine Elementary School 5,825.00 Geraldine High School 49,700.00 Henagar School 10,000.00 Ider High School 48,100.00 Liberty Learning Foundation 5,000.00 Moon Lake Elementary School 4,750.00 Mothers Day Out Preschool 3,000.00 Northeast Alabama BEST Robotics 7,500.00 Northeast Alabama Community College 81,028.00 One World Adventure 5,000.00 Plainview Elementary School 3,000.00 Plainview High School 41,000.00 Ruhama School 3,000.00 Sylvania High School 53,500.00 Valley Head High School 12,500.00 Total Education 589,803.00

Total Disbursements $ 1,350,556.88

DeKalb County Community Development Commission 9 Exhibit #2 Members of the DeKalb County Community Development Commission November 1, 2014 through May 31, 2018

Commission Members Term Expires

Ronnie Osborn Chairman January 2019

Bill Mitchell Board Member November 2018

Debbie Sizemore Board Member November 2018

John Westmoreland Board Member September 2016

Angie Bell Young Board Member October 2016

DeKalb County Community 10 Exhibit #3 Development Commission