Reoccurring Finding In State Audit Topic Of Discussion

The Jefferson County Audit Committee’s June 3rd meeting became a question and answers session, due to the lack of a quorum needed to take any official action. With only two voting members of the committee present ( absent were Mills, Griffith and Jett) a meeting between State of Tennessee auditors and the Audit Committee failed to meet the criteria for action, however the group, including David Gault, Bobby Hubbard, Jefferson County Finance Director Helton, Vice President of LDA Engineering Steve Bostic, and one citizen, as well a Committee Members Estes and High, discussed at length possible avenues to address a reoccurring finding in the State Audit. Mark Treece and Kristine Galitza, representatives of the State Comptroller’s Office, were present at the request of the Audit Committee to outline possible avenues to address a nearly $5 million dollar deficit in regard to closure and post closure of the Jefferson County Landfills.

The ongoing and rising deficit was met with a mandate this year to create an Audit Committee to develop a plan to address the rising finding, which the State anticipates will be slightly above the $9 million dollar mark by the closure of the current Landfill. Committee Members and the Jefferson County Finance Office have questioned the viability of the system used to estimate the County fiscal responsibility and if the maximum capitalization was applied. Treece has been auditing Jefferson County records since the original Landfill was in operation and has history with some of issues and concerns raised by the Audit Committee. The State is assuming a 49% usage of the current Landfill and the actual number is likely to be closer to 25%. Bostic, the engineer for the Landfill, stated that he is in the process of petitioning for another permit that could adjust some of the financial responsibility for the County. Treece stated that, although a 5% inflation rate was built into the original numbers, he is mandated to add an additional inflation rate of around 1.7 to 1.9 % annually. According to Bostic, these mandated inflation additions are driving the cost considerably.

Treece advised that the Committee should look at any labor costs associated with the Landfills that might not have been utilized previously to off set the tally but cautioned that it is unlikely that any avenue discussed will totally negate the finding. He said that ultimately the way to increase revenue to offset the deficit is through tipping fees and the largest contributor is Jefferson County, which could mean more tax pennies to cover the costs.

The former Landfill will fall off in 8 years and it was suggested that it would be a risk vs. benefit to concentrate on the new Landfill rather than put resources toward the former Landfill. As mandated by the State, the Audit Committee will compile a full report to the County Commission regarding their findings to date.