Financial records under scrutiny

By Jay Hasting
Contributing Writer
Posted 6/29/07

DAPHNE — The investigation into alleged financial improprieties at the Belforest Water System is headed to the Baldwin County District Attorney’s office.

The water board voted Monday night to request the D.A. to look into the system’s …

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Financial records under scrutiny

Posted

DAPHNE — The investigation into alleged financial improprieties at the Belforest Water System is headed to the Baldwin County District Attorney’s office.

The water board voted Monday night to request the D.A. to look into the system’s financial records to decide if there is evidence of criminal activity associated with the construction of a storage building located off Baldwin County 54.

The request is the board’s latest attempt to clear up the controversy that ignited after an internal audit report revealed a number of missing items and questionable expenses from the construction of the building.

According to the audit the completed cost of the facility was about 50 percent higher than the verbal understanding of board members.

“We still don’t know the exact cost of the building; we estimate it to be about $44,000,” board president Frances Rigsby said. “That is way over the $30,000 we discussed. But that was never voted on or put out for bid.”

The audit, conducted by the accounting firm of Johnson, Slaughter, Wells and Associates, addressed that issue, calling the board’s neglect of the bid process and acquisition of permits “reportable conditions.”

Belforest residents at Monday’s meeting called on the board to take the matter outside of the internal phase and allow a third party to investigate.

Lincoln Parker was the most vocal resident calling for the investigation.

“Let the district attorney go over the records and punish who is responsible,” Parker said.

Parker produced a document that detailed a number of items purportedly authorized by former board president Tommy Mitchell. The document included a list of payments to the project contractor, Ray Simmons.

At issue were allegedly missing construction items — valued at $4,347.65 — associated with the storage building.

In May, Mitchell gave the water board a cashier’s check in that amount from Simmons, who reportedly worked on at least five projects for the water system.

In an interview published earlier this month in the Daphne Bulletin, Mitchell said he agreed with the board’s expense report for the project but admitted no wrongdoing in the matter. Asked about invoices that vaguely and unclearly described Simmons’ work on several projects, Mitchell said he could verify the work — by seeing him in action — though he would have handled the records differently.

Kent Purser, a Belforest resident and a certified public accountant for Atlantic Marine, called on the board to seek the investigation to restore the board’s credibility.

“Unless you go outside this board, you will not regain the confidence of the community,” Purser said.

Rigsby agreed, and welcomed the call for the investigation.

“The board is going to have to do something, or the community will clean house,” she said. “This was an unfortunate situation but we are putting in checks and balances.

“The projects will be bid and we will be keeping a closer watch on the board’s funds,” she said.