Knox Co. employees offered incentive buyouts; about 90 to 100 eligible

Knox County is offering voluntary incentive buyouts to some of its long-time employees in what officials are calling a cost-cutting move that could save at least $1.6 million annually.

“It’s a cost-saving measure as well as an effort by the mayor to reduce the footprint of government,” said Michael Grider, the county’s communications director. "It's part of the mayor's conservative fiscal philosophy."

The county made the offer last week to some 800 employees but the plan will more than likely affect only 90 to 100 workers, said finance Director Chris Caldwell.

The move could "conservatively" cost about $1 million, but also save $1.6 million in that first year.

The goal, however, is to trim staffing by 25 to 50 positions, Caldwell said.

"Each employee has to determine if they want to apply," Caldwell said. "We are not targeting jobs. We are seeing who applies and then which positions those departments or fee offices can live without."

To qualify, employees must have at least 15 years of fulltime service with the county, a fee office or the sheriff's office. The buyouts do not apply to the school system.

The position also has to be one that goes unfilled or if it is filled, then the another job must be cut.

“The idea is not to let people retire early and incentivize that and then have to refill the position,” Grider said. “The idea is to save money.”

Employees who are approved will receive: three months of salary; a $300 payment for each full year of service; $3,000 to assist with medical coverage transition; health insurance for six months; and payment for accrued and unused vacation time.

When asked what brought about the move, Caldwell said: “The mayor is always looking for ways to save money and reduce government. It is not uncommon. The state has done this program in the past. It’s very similar to that."

Employees have until March 3 to apply. Caldwell said a number of workers have submitted requests so far but officials have not begun processing them.

Knox Co. to loan itself $5 million

Knox County is looking at potentially taking out a $5 million loan in early October to pay for general operations and the school system, which has depleted the reserve dollars it can use to dangerously low levels.

The catch?

Knox County will essentially borrow the money from itself.

Officials, however, stress that the county has plenty of cash but the bank accounts ebb and flow as tax revenues come in and later are spent.

The county’s reserves technically stand at about $60 million.

The school system’s reserves stand at around $15 million, but officials can’t touch most of that.

State law requires local school systems to set aside a reserve fund of 3 percent of their respective operating budgets. If they fall below that number, the state could take over managing the school system’s finances.

More than 10 years ago, then-Mayor Mike Ragsdale gave the Development Corporation of Knox County millions of dollars to purchase land. Since there’s still money left, the Development Corp. – if needed – will lend the county up to $5 million.

The county would then reimburse the corporation by early next March. The interest would cost the county about $5,400 altogether.

The county also could sell bonds to cover costs but officials are against such a move.

The County Commission will talk more about the matter during its Sept. 19 meeting.

“Financially, it’s more to our benefit to get a loan than it is to liquidate our assets,” said county Finance Director Chris Caldwell.

Caldwell, who has worked in the county’s finance office since 2002, said he can’t recall the county ever taking out a loan.

He said last year the county did liquidate some investments but actually made a gain when it sold bonds.

Caldwell is 'administrator of year'

Caldwell

During today’s Knox County Commission meeting, Knox County Finance Director Chris Caldwell will be presented with the “Public Administrator of the Year” award from the East Tennessee Chapter of the American Society for Public Administration. 

The society “is the largest and most prominent professional association for the advancement of ethical practice of public administration,” according to a letter to Mayor Burchett from former Knox County Law Director Joe Jarret.

“Since 1984, ASPA has promoted a commitment to the highest standards of professional and ethical practice by public servants,” the letter states. “Chris was chosen above other nominees due to the high ethical standards and professionalism he maintains through his service to the citizens of Knox County.”

Jarret is immediate past-president of the chapter and will present the award. He is currently a lecturer in Political Science at the College of Arts and Sciences at the University of Tennessee.

Knox school leaders to consider seven for interim superintendent job

School leaders will consider seven candidates for the interim Knox County Schools supetintendent gig.

The deadline to apply or nominate someone was 4:30 p.m. Monday.

The Knox County Board of Education has agreed to pick an interim superintendent to oversee the school system by the first week of April and then have that person in place on July 11 – the Monday after current Superintendent Jim McIntyre officially steps down.

The list of contenders for the interim position:

• Bob Thomas, a Knox County assistant superintendent
• Buzz Thomas, president of the Great Schools partnership
• Rodney Russell, Director of Human Capital Strategy at KCS
• Danny Trent, Knox County Schools secondary supervisor
• Ed Hedgepeth, who now works for the University of Tennessee, and retired from KCS.
• Chris Caldwell, Knox County finance director.
• George Hamilton, a Knoxville resident, submitted a letter of interest in the position.

The board unanimously agreed to let member Terry Hill oversee the vetting process. Hill will interview the candidates and then submit a recommendation for the board to discuss during an April 4 workshop. Members would then vote on the appointment April 6.

After that, the BOE’s chairman, Doug Harris, would have until April 17 to negotiate a contract with the selection.

Board members during a meeting last month that they were looking for someone familiar with the school system’s budget, schools and staff.

As superintendent, McIntyre oversees a $438 million budget, 90 schools and a 7,500-person workforce that includes almost 5,000 teachers.

The Knox County BOE hired McIntyre in the spring of 2008, after a year-long process that included whittling down a list of 40 candidates to a handful of finalists.

At the time, officials held a number of community meetings to define the next superintendent’s skill set.

In the end, the choice came down to three names: McIntyre, Brian Bingelli, an assistant superintendent in Virginia’s Fairfax County Public Schools, and Bob Thomas, now in the running as interim superintendent.

Projections: Knox BOE budget on pace for $14M increase for upcoming FY

Chris Caldwell address the BOE

The Knox County school system’s upcoming budget could jump by as much as $14 million when officials put together next fiscal year’s spending plan, according to revenue projections.

During Wednesday’s Board of Education meeting, county finance director Chris Caldwell told school leaders that property and sales tax revenues are up, as is the Basic Education Program allocation from the state.

The school system currently operates on a $438 million budget.

Caldwell said property tax revenues project a roughly $1.6 million increase, raising total collections to $96.8 million. He noted that sales tax collections are on pace to bring in an additional $5.1 million, which would raise those collections to $143 million.

In addition, officials are expecting an additional $11.4 million in BEP funding form the state, which would increase that total to more than $194 million.

Caldwell said “other revenue sources” would eventually lead to an overall $14 million increase if “everything remains on pace.”

If the projections hold steady, that could lead to a $452 million spending plan for the school system’s upcoming fiscal year, which begins July 1. The overall difference amounts to about a 3.2 percent increase from the current budget.

KCS expected to receive additional $11.4 million in state BEP funding

Knox County Schools is expected to receive additional $11.4 million in Basic Education Program funding from the state.

The Governor's Office will begin allocating the extra money beginning next fiscal year, which starts July 1.

The school currently receives about $182 million a year, according to Knox County finance director Chris Caldwell, who said the additional funding is tied to a 1 percent student enrollment increase during the 2015-16 year.

MORE: BEP budget for FY17

The governor's office is expected to allocate an additional $26 million in BEP funding to Shelby County Schools, which is a public school district in Memphis, Tenn.

The BEP makes up a good portion of the school system’s annual more than $438 million budget.

For years local officials have fought for an increase in the county’s portion from the state.

The windfall comes at a time when county and school officials have been at odds for the past few years over the school system’s funding.

Here's a list of other East Tennessee school districts receiving more than $1 million in additional BEP funding (rounded two decimal places):

• Anderson County: $1.38 million
• Blount County: $2.91 million
• Maryville City: $1.15 million
• Cocke County: $1.28 million
• Cumberland County: $1.57 million
• Grainger County: $1.23 million
• Greene County: $1.26 million
• Hamblen County: $3.71 million
• Hawkins County: $1.91 million
• Jefferson County: $2.41 million
• Monroe County: $1.36 million
• Rhea County: $1.19 million
• Scott County: $1.11 million
• Sevier County: $1.31 million

Commish gets $1.5M Regal proposal

The Knox County Commission on Monday officially was handed the first piece of a multimillion-dollar financial proposal that would relocate Regal Entertainment Group’s corporate headquarters from the Halls community to the South Knoxville waterfront and keep the movie theater giant in East Tennessee.

Commissioners opted to forward the proposal without a recommendation to next Monday's voting meeting. They did not publicly discuss the matter.

Knox County Finance Director Chris Caldwell, at the request of Knox County Mayor Tim Burchett, added the $1.5 million funding proposal to the board’s work session agenda on Monday.

The commission will publicly address the matter during next Monday’s monthly voting session.

Burchett issued a statement Monday about the potential move: “Whenever we have a chance to invest in growing new jobs or keeping existing ones here in Knox County, I want to be part of that conversation. When considering this type of investment, we always have to make sure it makes sense for the taxpayers. I look forward to being able to provide additional details about this exciting opportunity in the near future.”

After the meeting, Commission Chairman Dave Wright said: "It's economic development. This is about jobs, and Mayor Burchett and the commission are interested in jobs, and if this is playing out for jobs to leave Knox County, then we need to be working to keep those jobs in Knox County."

Rest of story RIGHT HERE.

Insurance costs: County, employees pick up $1.4 million increase

Knox County will need another $1.4 million to cover health care for its employees due to the increasing costs of specialty drugs.

The county will cover half the amount – some $700,000 – and then raise the price of premiums for its employees to cover the other half.

“It’s the skyrocketing costs of those drugs – that’s the main reason we have to do this,” said Nick McBride, the chairman of the county’s employee insurance committee. “No one wants their insurance to go up, but as we all know the costs keep rising for everyone unfortunately.”

For example, Sovaldi, a new specialty drug that has a 90 percent cure rate for hepatitis C costs $84,000 for a three-month course. A drug to combat hemophilia can cost as much as $130,000 per month.

The county is self-insured, which means it pays the costs of the claims employees file. Some 2,300 employees and an additional 3,200 family members are on the county’s insurance plan. The cost of premiums, which are deducted from each pay check, vary depending on which of the three plans an employee has and the number of people on the plan.

Starting Jan. 1, when the new plan takes effect, employees will pay an extra $5 per paycheck for individual plans; $10 per paycheck for a plan that covers them and one more person; and $15 per paycheck for the family plan.

That will set the new rates for the least expensive plan at $10, $69 and $104, respectively.

However, those costs will double if the employee does not have a health risk assessment conducted or participate in HumanaVitality, a program designed to encourage healthy lifestyle changes.

“There’s really not much we can do about the cost of the specialty drugs, but where we can save money is by working together to have a healthier workforce,” McBride said. “The employees can take the assessment – a physical – that can detect early heart disease or cancer, and give them a chance to get ahead of it.”

Last year, the county paid about $24 million in health insurance costs, said county Finance Director

Chris Caldwell, and the employees paid about a combined $4.2 million.

Knox County expecting budget surplus, earmarks $2.9 million on big items

Knox County officials have put together a shopping list for how they would like to spend what is expected to be at least $2.9 million in surplus revenues and savings, with much of the money dedicated to employee salary adjustments, the Sheriff’s Office, a partnership with Blount County and the possible relocation of two county clerk satellite offices.

The county’s finance department is expected to officially close the accounting books on FY 2014, which ended June 30, later this month. Officials said they could get roughly $4 million to $4.5 million in unexpected revenues tied to an uptick in sales taxes collections and departmental savings.

Of that amount, the administration has already designated almost $3 million for a number of items that various department heads requested, said county Finance Director Chris Caldwell. Any additional savings will go to the county’s reserve fund.

EARMARKS: Entire list here

The school system, which also receives tax revenues, is not expected to get a surplus this year, officials said. Although sales tax revenues jumped, property tax revenues dropped somewhat. Knox County Schools departments also didn’t yield the same amount of savings, so overall spending broke about even.

Here’s a snapshot of how officials would like to use some of this year’s savings:

• Courts: $185,000 for new Criminal Court Clerk’s Office filing system; $8,500 for computer/scanning equipment for Civil Sessions Court Clerk
• Agencies: $100,000 Boys & Girls Clubs of the Tennessee Valley; $80,000 Helen Ross McNabb Runaway Homeless Services; $20,000 Catholic Charities of East Tennessee Children’s Emergency Shelter;
• County Clerk: $175,000 for renovations tied to potential relocation of the Halls and Farragut offices
• Blount Partnership: $600,000 for Blount County business park one-time capital expenses, like roads and sidewalks that are tied to a Maryville, Alcoa and Knox County initiative established years ago.
• PBS Math line: $100,000 for a program that helps students with math
• Salaries: $500,000 to adjust salaries that were changed after the county recently created a new pay scale.
• Health Department: $100,000 for the Knoxville Volunteer Rescue Squad; $50,000 for Karns Volunteer Fire Department.
• Sheriff’s Office: $200,000 for five marked Dodge Charges, $29,000 for laptops; $52,000 for kitchen equipment at the Roger D. Wilson Detention Facility; $15,000 for DNA testing.

The Knox County Commission will discuss the designations during Monday's meeting, and decide whether to approve the expenditures.

Storms could ding sales tax revenue

Chris Caldwell

Overall sales tax revenues for Knox County are up right now, but they could take a hit because of February’s snowstorms.

However, Knox County’s finance director, Chris Caldwell, says he’s not hitting the panic buttons just yet.

“It will be interesting to see what the February tax numbers are this year with the snow and ice events,” Caldwell said. “I would expect a possible decrease.”

Just how much, though, is not known at this point. The county won’t get the numbers back from the state until mid-April.

As it stands, the county is up $5.9 million in sales tax revenues from July through December – the first six months of the current fiscal year – compared to the same time period last year. The total does not include sales tax revenues from Knoxville or Farragut.

Overall county expenses are about even, so Caldwell said he’s confident that the numbers will eventually work themselves out.

But, the sales tax revenues are often fickle and officials say recent inclement weather could hurt them.

Last month was one of the coldest Februarys in Knoxville’s history with an average temperature of 32.1 degrees, which is 10.3 degrees below normal.

In addition, 8.2 inches of snow fell for the total month, which is 6.6 inches more than the average February.

Knox County schools were closed Feb. 16 for Presidents’ Day when the snow first fell and remained closed due to weather through Feb. 27. Many businesses were shut down as main and secondary roads were hazardous for drivers, and the Knoxville Police Department and the Knox County Sheriff’s Office responded only to life and death emergencies.

“There will be an impact,” Caldwell said. “But I don’t think you’ll see it being horrible.”

Knox County, Knoxville and Farragut brought in a combined $15.6 million in sales tax revenue in February 2014.

Sales tax revenues make up only 6.3 percent of the county’s overall general fund, but comprise about 30 percent of the school system’s budget.

Knox County hopes 'unclaimed funds account' brings financial windfall

Chris Caldwell

It’s a little-discussed fund, but it can often bring in big bucks for the Knox County.

The Knox County Commission on Monday is expected to sign off on a request to let the administration receive some unclaimed funds that have been placed in the State Treasurer’s Office for more than a year.

Officials won’t know how much is there until July, but last year the county got almost $150,000, and the year before that it received $287,100.

“It varies from year to year and you never really know what you’ll get,” county Finance Director Chris Caldwell said.

To get the money, the board must ask for it through a resolution.

“That allows us to do two things,” said Caldwell. “It requests the money back from the previous year’s report and also lets the state know that we’re going to file for the current unclaimed property as well.”

The money the county seeks this year is technically from 2013.

Here’s how it works:

Every check the county cuts to someone that isn’t cashed after one year is forwarded to the state where it will sit for an additional year. The county can then file a claim for it – after it has again tried to notify the person or vendor and give them a chance to reclaim the money.

Most of the money that goes unclaimed is tied to jury duty, mileage or other reimbursement checks, or medical deductibles, Caldwell said.

Caldwell said he isn’t sure why the checks go uncashed, but suspects it’s because people have moved and didn’t provide the county or post office with a forwarding address.

The money will be placed into the county’s general fund, which covers much of the county’s day-to-day activities.

To be on the safe side, the county typically underestimates the amount it will get, so the revenue is considered a windfall if it is more than $25,000, Caldwell said.

Zoo Board on 'whirlwind' 2-day tour

A number of folks on the Knoxville Zoo Board, including Casual Chris Caldwell, the county’s finance director, are hanging out in Oklahoma City right now, ready to check out the local zoo there.

“I promise you, it’s a legit trip,” Caldwell said laughing. “It’s going to be a jam-packed two days – a whirlwind tour.”

Casual said a small group, who left Knoxville at 6:45 a.m. on private planes and will return tomorrow at 10:45 p.m., plan to visit zoos in Oklahoma City and Dallas today, and then zoos in Fort Worth, Waco and Tyler tomorrow.

The Tyler, Texas zoo by the way is actually called the Caldwell Zoo. Heh.

“We’re looking for ways to improve our zoo,” he said.

The groups will focus on certain things at each zoo. For example, he said they’ll look at grasslands and elephant exhibits in Oklahoma City and Dallas. In Forth Worth, they’ll check out the herpetology stuff (that’s amphibians and reptiles).

He said the zoo and those going are paying for the trip.

Knox County not on pace for surplus

Well, at this point the county is not on track to reap another surplus like it has in recent years.

As it stands, the county’s general fund revenues are up $3.1 million compared to this time last year, but expenditures also are up $4.8 million.

The school system at this point is doing OK, although things could change. Revenues for schools are up $8.9 million compared to this time last year with $4.9 million in increased expenditures, so we’re looking at about a $4 million bump.

All this, according to Knox County Finance Director Chris “Money Bags” Caldwell.

Caldwell, however, said all this could be timing.

That means next month the number might not look so hot. Or they could look even better.

That said, if the school system does get a surplus it more than likely won't be applied to teacher raises. The system typically pays off other bills with part of this money.

Finance dept. wants commission to create rules tied to reserve funds

Chris Caldwell

Knox County finance officials have long said that they don’t want to use reserve funds on reoccurring costs, like employee raises.

Now they want it in writing.

The county’s finance team has asked the County Commission to create a formal policy that sets the rainy day fund at 25 percent of the county’s general fund – the account that typically covers much of the day-to-day operations.

Right now that would mean setting the floor at $40 million, which would cover the county for four months if things went bad – real bad. (The fund now sits at a just over $50 million.)

Top county finance guru Chris “Money Bags” Caldwell said the county has long kept “an informal policy,” regarding how it would use reserve dollars, but its external auditors recently suggested that officials should set it in stone.

The bond rating agencies also like when local governments do this, he said.

The timing, however, is interesting. The school system is asking the county to foot the bill for teacher raises, since it supposedly doesn’t have the money. (And not to mention that Gov. Big Bill declined to give raises, so that throws things even more out of whack.)

Since, the county isn’t going to raise taxes to cover any salary bumps, the only other place to go is the reserves.

Put it in writing that you can’t mess with the rainy day account, and the commission has a semi-easy out for why it won’t support raises and why the responsibility should go back to the school system to fund.

Caldwell, though, says it’s all a coincidence. I’ll take him at his word. He’s always been a standup guy.

Pension contributions to decrease

Well, here’s some good news. At this point it looks like contributions for the upcoming fiscal year, which kicks off July 1, will be down for the county’s three pension plans, according to county Finance Director Chris “Money Bags” Caldwell.

Here’s how it’s looking:

Last year (technically in this current budget), the county contributed $3 million for what’s dubbed the “old county” or “DB” plan, which closed in 1991. This year, the county is expected to contribute between $2.7 million and $2.9 million.

The county also last year kicked in $1.7 million for the old school plan, which it assumed from the city and closed in the late 1980s. This year, it will put up between $1.3 million and $1.5 million.

The county contributed $4.5 million into the Uniformed Officer’s Pension Plan, or UOPP, which closed to new employees at the beginning of this year. (The $4.5 million does not include bond payments, which were needed to get the plan up and running.)

This year, the county is expected to contribute between $3.7 million and $3.9 million.

That means the overall savings for the two plans could range between $900,000 and $1.5 million.

Caldwell said the decrease comes as the county’s investments exceed their expected interest rates for calendar year 2013. The county’s expected rate of return on its investments is 7 percent, which is pretty reasonable and fairly conservative compared to the rest of the nation.

Friends of Literacy to host auction

My good deed for the day: I’m pimping out Chris Caldwell, aka “money bags, aka “Casual Chris,” aka “Color Coordinated Chris,” aka Knox County Finance Director. Heh.

According to his letter – right smack here – Caldwell had joined a group of bachelors up for auction in an effort to raise money for Friends of Literacy. For all the silliness it’s actually a pretty worthy cause, and even da Blog has donated a few folding bills, if only to help combat illiteracy.

The auction is set for March 14. You can check out the list right smack here. Caldwell said his goal is to raise $1,000.

In addition, to Caldwell, my old buddy Saul Young, a local photographer, is a candidate.

Again, right smack here to donate. Do it now.

Task force to look into BEP funding

Yesterday, the Tennessean posted an article by Chas Sisk (who is a bad a$$ state reporter but not as bad a$$ as my guy Tom Humphrey) that said Gov. Big Bill has formed a task force to study the state’s Basic Education Program, or BEP, funding to schools.

Sisk notes that the formula, which factors in enrollment, tax revenues and school staffing, was last adjusted in 2007. (I know some folks don’t want to hear this, but you can thank for then-county Mayor Mike Ragsdale for that.)

The move is good news for the Big Four counties as they’ll more than likely get some more coin.

Last year Knox County received almost $172 million, but Knox is considered a “donor” county, meaning it turn into a lot more – about $40 million in sales taxes – than it gets back.

That could change.

“The students don’t get that money – it gets distributed to other schools across the state,” Knox County Finance Director Chris “Money Bags” Caldwell told me today. “But this has always been a fight between the rural and urban counties.”

He said that seven years ago, the state formed what essentially has been dubbed BEP 2.0. He said Knox County – if it was fully funded under 2.0 – should have received an additional $20 million. It didn’t. Caldwell, who was out buying ties yesterday because the county is closed and wasn’t near his finance books, said he believed it jumped “about $10 to 15 million” at the time.

The task force will report back to the governor at the end of the year.

UPDATE: Ha ha. Randy Neal weighs in. Apparently the task force already exists.

Audit released - some problems found

A combined series of accounting errors between the county trustee’s office and the finance department during 2011 and earlier led the school system to operate under the guise that it had $1 million more in its reserve funds than it actually did during the past couple of years, according to a report made public to the county’s Audit Committee on Tuesday.

No cash, however, actually changed hands and the money was never spent. The mistake occurred on paper only.

Still, auditors dinged the county for the snafu, saying it could eventually have led to more compounded accounting issues, and “resulted in unnecessary complexity in the Trustee’s accounting records.”

Since discovered, though, the mayor’s office and trustee’s office have corrected the matter, using more “stringent recordkeeping procedures” put in place last year at the recommendation of the Audit Committee, according to county Finance Director Chris Caldwell.

“There’s no such thing as a good finding, but this is a good finding in the sense that the procedures worked and for the first time in a long time, there is a great communication between the Trustee’s Office and the finance department that allows us to tie down every account,” Caldwell said.

The county’s Audit Committee spent part of Tuesday discussing the county’s annual report, an in-depth analysis that delves into the fiscal year budget that covered July 1, 2012 through June 30, 2013.

In it, the external auditor, Knoxville-based Pugh & Co., cited three problems.

External auditors found a $2.4 million discrepancy between the county’s financial books and the Trustee Office’s financial books. They called the difference a “material weakness,” a technical description that describes a misstatement which could take longer to correct or could be missed altogether.

The $2.4 million overstatement stemmed from a series of liability accounts that were never reconciled between the two departments for a number of years.

The mistake led officials to believe that the county’s reserve fund – and the school system’s reserve fund – each appeared to have about a $1 million more in them then they really did. (The school system gets a cut of collected property taxes.)

Caldwell said now both offices have put procedures in place to fix the matter and to make sure it doesn’t happen again.

Auditors also noted two “significant deficiencies,” mistakes that are slightly less damning than material weaknesses but still keep management from discovering a problem in a timely manner.

Auditors said the county’s accounting systems doesn’t produce reports that allow auditors to easily follow the county’s capital assets, which include any equipment that’s worth more than $5,000, like vehicles or buildings.

The county by the end of the month plans to bring in a consultant to tailor the reporting needs and resolve the matter, Caldwell said. The consultant will probably cost about $5,000.

The audit also said that the county at times didn’t adhere to the Davis-Bacon Act, a federal mandate that requires officials to follow certain rules to ensure that the contractors who oversaw a series of low-income housing projects funded with more than $200,000 in “community development block” grants turned in the proper payroll paperwork.

County officials said turnover in the community development department at the time created a lapse in monitoring. The new employees have been trained in the proper procedures.

Neither Caldwell nor Leuthold were in charge of their respective departments when the mistakes occurred.

Mistakes that aren’t corrected could end up affecting the county’s bond rating, which could lead to higher interest rates when the county takes out loans or issues bonds.

County audit to note a few problems

As I said would happen back in mid-December, the county received a clean bill of health from its auditors in a review tied to its annual report, which covered the entire previous fiscal year.

However, I noted that when the county officially turns over the single audit report (this is kind of the sister report to the comprehensive finance report, or CAFR), that there were going to be some problems.

Well, that report will be made publicly on Tuesday when the Audit Committee accepts it. And, like I predicted, officials will talk about several problems auditors found.

“A government our size is always going to have an audit finding,” said County Finance Director Chris “Money Bags” Caldwell. “We expect a handful of findings. The key to the thing is cleaning up the findings from the previous year.”

However, Caldwell, who didn’t actually take the top finance gig until the middle of last year so you really can't blame him for any of it, said the county has taken care of the problems.

You can read the original story I wrote right smack here.

County audit report to show problems

Knox County is expected to receive a clean bill of health from its auditor, but some departments will have problems that will need to be quickly fixed, officials said Tuesday.

If not, they could jeopardize the county's bond rating.

"There will be some findings," said Knox County Finance Director Chris Caldwell, who declined to elaborate. "A government our size will have some findings, but at least everything from 2012 has been cleared."

As it stands, the county's external auditor, Pugh & Company, should finish the Comprehensive Annual Financial Report, or CAFR, by the end of the week. Auditors will then issue local leaders a management letter that provides more insight into the report and list any deficiencies and weaknesses in the county's overall organization structure for fiscal year 2013, which ended June 30.

The rest of the story, right smack here.