Audit: Hundreds of millions of taxpayer money unaccounted for – CBS Atlanta 46

6
Jul

Audit: Hundreds of millions of taxpayer money unaccounted for – CBS Atlanta 46

CBS Atlanta 46

EAST POINT, GA (CBS ATLANTA) – The mayor of East Point attributed $200 million of taxpayer money that’s unaccounted for to “criminal activity” Tuesday.

“Some elected officials aided and abetted the former city manager and staff members who used city funds for their own personal appeal in a manner I consider illegal and criminal,” said Earnestine Pittman in a phone interview with CBS Atlanta News.

Residents learned at Monday night’s city council meeting that $200 million of taxpayer money was not properly documented as it was spent.

An external audit by Mark Felton of Felton Financial Forensics stated that thousands of documents to show a paper trail of purchases are also missing, and in some cases where the money was spent, when it was spent, and who spent it, are also missing from city records.

“$6.9 million in payments were entered in a journal entry,” Felton said. “No detail, no information in terms of date, no information in terms of why.”

According to Felton, there were a number of areas in the city’s financial records that raised red flags. Felton went on to say that a number of city invoices payments are missing from 2000 to 2012. Over 40 percent of the payments made cannot be properly documented. Of the city’s total expenditures in that time, $500 million, nearly $200 million was not properly documented. During Felton’s synopsis, he also stated that all accounts payable documents from 2010 to 2012 are missing altogether.

In some cases, Felton said payments were made to vendors in ways that violated Georgia Law.

The city council plans to discuss how they can move forward from the audits to prove whether money was stolen, or if whoever kept records did a poor job.

via Audit: Hundreds of millions of taxpayer money unaccounted for – CBS Atlanta 46.

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