Audit finds 'deficiency' in Trustee's Office

As expected, Knox County’s external auditor KPMG identified a “significant deficiency” in the financial reporting of the Trustee’s Office.

It’s not the end of the world, but it just doesn’t look good. Of course, if you ask the good folks in the tax collector’s office, they’ll tell you it was no big deal and that it was all the computer’s fault.

Dog ate my homework. That kind of stuff.

Click right smack here for KPMG's management letter, which talks about the issue and read what Trustee John Duncan III’s office had to say about it.

As I said, KPMG said this would probably happen. You might recall that back in October I wrote about a $6 million mistake that the auditors discovered in the some of the numbers the office provided them.

(Oddly enough, the good Trustee folks didn’t really seem to care all that much about the screw up when I asked them about it – they were more interested in who provided me the information. Strange. But I digress.)

Anyhoo, there was some back and forth and kicking and screaming, but they finally got the math right. In between that time, however, some stories changed.

Heh.

That sounds familiar.

Pension plans to cost Knox more this year

Knox County will probably have to contribute between $5 million and $5.3 million to the Uniformed Officers Pension Plan, or UOPP, this upcoming fiscal year in order to keep it healthy, according to projections released this morning to the pension board.

That’s as much as $1.3 million more than the $4.1 million the county put in last summer. And that doesn’t include the $4.1 million in bond coin the county will also have to pay.

The Sheriff’s Office pension plan, however, isn’t the county’s only problem. Two closed plans – one for county officials and the old teacher’s plan – also need a cash injection. The county plan is expected to cost taxpayers another $600,000 to $800,000 and the Board of Education plan will cost an extra $150,000 to $250,000.

Last year the county plan cost about $1.5 million and the school plan cost $1.046 million.

The pension board plans to meet later in February to discuss the UOPP. At that time, members will talk about the plan’s liabilities, assumed rate of returns on investments and possible changes.

“We want to focus on the magnitude of the problem and what can get changed and what can’t,” said county Commissioner Richard Briggs, who also serves on the pension board.

Zoinks! It's old man Baumgartner!!

It’s funny how pictures can jog old memories, oddities of the past, blah, blah, blah, whatever.

Anyhoo, not too long ago I stumbled across this photo of former Judge Richard Baumgartner (on the KNS website taken by Michael Patrick).

It reminded me of something. Then I remembered: Scooby-Doo. Or a Scooby-Doo bad guy. So, I Googled it. And up pops “The Creeper.” And he’s exactly who was stuck in my head. Cause, you know, you might look like the creeper after eating 30 pain killers a day, having sex in your judge chambers with your pill supplier and then taking the bench while pilled out of your mind and screwing up (potentially) thousands of cases.

Remember how whenever Scooby and the gang would unmask the villain? They’d be like: “Zoinks, it’s old man Jenkins.” Heh.

Well, apparently, the Creeper was old man Baumgartner. Yeah, I couldn’t resist.

Trustee hires attorney amid investigation

Knox County Trustee John Duncan III finally lawyered up.

On Friday Jeff "Hollywood" Hagood confirmed to me that JD3 hired him to represent him in the latest mess associated with those who think it's a great idea to serve as county trustee. (Remember there's already an investigation going on into the Mike Lowe administration from some years back.)

Anyhoo, Hagood is well-known for repping some high-profile University of Tennessee athletes as well as former UT football coach Phillip Fulmer. He's also done work for the Duncan family in the past.

Duncan has declined to comment.

Commish, BOE retreat agenda released

Remember that whole retreat thing that the County Commission and the School Board wanted to do, so they could all hold hands and sing and stuff?

(Click right smack here for the story.)

Well, it's still on – next weekend in Maryville. Here's a draft version of the agenda – right smack here.

If you can find anywhere on the draft where it says the two governing bodies will talk about the county and school system's financial straits, then let me know. It must be buried on all the legal talk.

More on TBI, Trustee's Office and tests

For more on the continuing meltdown in the Knox County Trustee's Office click right smack here.

And no, I am not enjoying this despite what anyone thinks. It does not please me to have to write stories that the county's tax collector (the person who is supposed to deposit a billion in coin each year so we actually have a county) is now under investigation by the TBI.

Huh? What's that you say? The TBI?

Yeah, read between the lines in today's story – again, click right smack here.

The law director's office can't do it (since it's criminal in nature), the sheriff's office won't do it (because they don't want people screaming “conflict of interest”) and the district attorney general won't do it (because they're tired of Trustee John Duncan III and his office attorney Chad Tindell coming to their office nine times a day begging them to drop it).

So, where does that leave us? Yup. Tennessee Bureau of Investigation.

It's funny, how early yesterday, they hadn't been contacted by the local peeps. Yet later in the day – when I got it on background and able to use for the Screams from da Porch blog – I start hearing that they've been contacted, it's then that the spokesperson freezes up and says “no comment.”

I don't think I need to tell you what “no comment” means.

OK, with that said, a buddy of mine was lamenting for Zach Brezina today. Brezina is the guy who works in the Trustee's Office and is accused of taking tests for some of the employees.

My question for him is whether he's been taking tests for the trustee all his life? Did he take his SAT test for him, too? Heh.

Anyhoo, my buddy is like: "I feel bad for that guy."

And I'm thinking: "Why? He's the freakin' hero of this story?"

My buddy: "Huh?"

Me: "Yeah, he's obviously the only one smart enough to pass a test in that office."

With that said, Brezina this morning stroked a check to the county for $6,000, reimbursing tax payers for his interest free loan – I mean bonus – the Trustee's Office gave him.

And speaking of that. Funny how all of a sudden everyone is cutting checks so quickly. I'm guessing that the money is coming from the trustee's campaign money. It more than likely would not be illegal.

But it would show the absurdity of how politicians use campaign coin.

At this point, though, I think we've moved beyond absurdity.

Commish Smith and the Duncans. Heh.

Commissioner Arrghhhhh Larry Smith must have heard about my blog post regarding our brief discussion about whether the good Congressman called him, regarding the good Trustee.

(I know Channel 6 did. They turned it into an entire story the other night. Heh.)

Here's the initial post right smack here. In it, I make note that it appeared that Rrrrr. Larry was ducking me. He called me a few hours after I posted the blog and he told me what U.S. Rep. John J. Duncan Jr. said to him. I wrote it down, then forgot to blog it cause all heck broke loose in the Trustee's Office.

Sooooo, here's what we talked about late Wednesday morning:

Smith: “They called me to his office and he told me to stay away from his son and that he had done nothing wrong?”

Me: “Who told you?”

Smith: “The Congressman, Jimmy Duncan.”

Me: “Why?”

Smith: “I don't know, but I was in there for about 15 minutes and he said it three different times: Stay away from my son. So, I'm thinking in the back of my mind: Does that mean I don't have to pay taxes anymore?”

Me: “Hahahahahahahaha. Good one. Good one.”

Smith: “He also said I'm the one who leaked it (the story about Trustee John Duncan III offering to pay back bonuses he and his staff collected tied to coursework they didn't complete). I didn't leak it to the press. You called me.”

Me: “Yeah, that's true, they've been throwing out names to who leaked what, trying to figure out what sticks. Not sure what difference it makes. They must not support the whistle blower law or something.”

Smith: “Well, I'm wondering why they're mad at me. I'm trying to help his son. He (the good Congressman) couldn't relate to that. It wouldn't sink in.”

On Thursday (that's today), the good Commissioner called me to add one more thing: “(The good Congressman) told me three different times that I should stay away. Another time he phrased it by saying it would be a personal favor (if he stayed away).”

Now, from what I understand, the Congressman has called all of this hogwash.

I'm sure there's a little truth on both sides.

Heh.

Officials to cut local state legislative office

Awhile back Knox County Mayor Tim “Cheapskate” Burchett cut a number of jobs, including one he really didn't have authority over. That was the $50,000 spot in the Legislative Office held by Patsy Miller. (She has since retired. And Burchett did actually broach the idea with members of the local Legislative delegation. But I digress.)

Anyhoo, state Rep. Ryan, Haynes, R-Knoxville, and state Sen. Stacey Campfield, R-Knoxville, are sponsoring legislation that wipes out the entire department. Not that there was really anything left to wipe out, but it now means another governing body or official later on can't just fill the job.

Click right smack here for the state House version of the bill.

I'm not positive about what the office actually did, but from what I understand it was more an answering service for the local state senators and representatives.

Hillside amendment to be revisited?

Now did anyone really believe the hillside issue would go away once the county commission approved the plan? Yeah, didn't think so.

During Monday's meeting, Commissioner Tony Norman noted that he's “trying to get a reconsideration of that amendment,” referring to a change initiated by Commissioner Richard Briggs and signed off by the board in November.

Briggs on Monday said “there's been a lot of misunderstanding about the intentions of the amendment" and again noted that he asked for it so that developers and the public would be guaranteed an appeals process.

Some, however, say the wording is superfluous.

I don't know. I quit caring in November when they supposedly passed this thing for the last time.
It's like a bad movie villain.

And it returns next Monday.

Trustee's workers to pay back half - not all

UPDATE: Please note that the following entry is based off the recommendations of the finance department. After it was posted, The good Trustee John Duncan III sent me a message, noting as such. He said the office has yet to discuss it with him. "I am writing a check for $6,000. Everyone is expected to return both payments," Duncan said.

Although pay day for county employees is this Friday, the folks over in the Trustee's Office won't begin paying back their interest free loans (I mean, bonuses they received two years in a row for not completing a government-related course) until early February.

In the meantime, there is one dude who got “only” $3,000 in coin in 2010 (and who also didn't complete the class)who is no longer working in the office so he won’t be paying back jack. I mean John. Blood from a turnip and all that.

As for the rest who are still employed? All but one of them cashed $6,000 in “incentive” checks (that's two checks each). So, according to the good Trustee, they’ll pay all that back. Right?

No. They won’t. Not really.

Most will pay back half, or $3,000 in which the county’s payroll department will take a little from each check.

Then, the employees will complete the course work this spring and forgo their next $3,000 payment that they are allowed to get next fiscal year. (Please note that this free money is not mandated.)

This proposal – pay back half and not get a bonus next year – sort of makes sense and it doesn’t, I suppose. Because, let’s face it – once they complete the coursework – they’re going to keep getting those checks forever.

So, there’s no point in making the workers pay back $6,000, just to hand them back another $3,000.

Of course it would have made a whole heck of a lot more sense to have the employees graduate from the program first and then pay them. But, the Trustee’s Office feels that state guidelines only “recommend” that the employees finish first before getting paid.

“A misconception that has arisen since this issue was brought to the public's attention is the scope of the State statute, which is nothing more than a recommendation,” Trustee John Duncan III wrote to the News Sentinel.

(Please note also that the Knox County Trustee’s Office appears to be the only governmental entity in the entire state that actually believes this.)

I suppose the next time I get clocked doing 90 miles per hour in a school zone, I’m going to tell the cop that the speed limit is nothing more than a recommendation.

Commissioner Smith vs. Trustee's Office

In other related Trustee Office news, the whole interest free loan/bonus/incentive issue was moot on Monday during the County Commission’s work session.

Commissioner Rrrrrr. Larry Smith (inside joke – thanks Scott McNutt) asked the commission to hold off discussion until next Monday.

In a move often imitated by the county’s Trustee, Smith gave conflicting reasons for the delay. On the dais, he told fellow commissioners that he wanted the finance department or human resources (I don’t remember which one at this point) to provide him with a list of everyone who received a check and for how much.

We actually reported that a few days before Christmas: Click right smack here.

After the meeting, Smith told Channel 10 reporter Hillary I don’t remember her last name that he held off because next Monday the good folks from CTAS will talk to commissioners about the education program. (CTAS administers the program that officials are supposed to complete in order to get that good money.)

And that’s about the time I said: “Hey Larry, got a question.”

Smith: “Yeah, buddy?”

Me: “Can you talk about the conversation you had with Congressman Duncan. I heard John Duncan’s (as in Trustee John Duncan III) dad called you and a few commissioners. He didn’t put the fear of God in you, now did he?

Smith: (Big smile)

He then looks at Hillary and says: “Do you play softball?”

I’m not kidding.

Strange.

Thanks to Dan Andrews for reminding me that this even happened.