Assessment of Vidalia's Internal Financial Operations Finds Several Areas of Concern

At the request of town officials, LLA advisers performed an assessment of the Town’s internal controls over programmatic and fiscal operations. The assessment resulted in findings of possible violations of state law and/or town policy in seven areas and recommendations for improvements in those areas, as well as 12 others.

Among other issues, advisers found officials could not initially confirm whether Vidalia’s designation had been changed officially from “city” to “town” as required by law because its population is below 5,000. Advisers also found that town officials budgeted more money for expenditures than was estimated to be available in the General Fund for the following fiscal year, which is a violation of the Local Government Budget Act.

In addition, the town’s former administration paid its former mayor and former police chief $82,692 and $36,517, respectively, for accumulated personal and vacation leave, but the current administration was unable to provide time sheets or leave slips to document hours worked and leave taken to support the payments.

Advisers found as well that the former town administration paid out at least $11,054 more than it should have in leave balances for six terminated employees and paid both the employer and employee portions of health insurance premiums for three employees on workers’ compensation and a Board member, in violation of town policy.

The Town also may not have complied with the Open Meetings Law on at least one occasion, and it paid out $109,725 in incentive payments to 162 employees and elected officials, possibly in violation of state law.

In addition to recommendations for improvement in the previously described areas, advisers suggested town officials develop a comprehensive policies and procedures manual to cover all critical municipal functions, as well as establish proper controls and processes for credit cards; contracts, leases, and business agreements; payroll and personnel; accounts receivable and collections; purchasing and disbursements; utility systems; travel; hydroelectric plant royalties; convention center operations; FEMA Public Assistance reimbursements; and budgeted positions.