County audit flags repeated deficiencies in sheriff's office; subpoena seeks records tied to Mills Gas and Diesel

Brad Hupp of Powell & Jones presented Suwannee County's fiscal year 2023–24 audit to the Suwannee County Board of County Commissioners on Oct. 21, saying the firm's opinion was that the county's financial statements "do present fairly, in all material respects, the financial position of the county as of year end Sept. 30, 2024." Hupp also outlined eight audit findings and six recommendations that the county must address.

The auditors listed eight findings, several of which repeated from prior years. They include accounting-software configuration problems, inadequate segregation of duties in the sheriff's office, an out-of-date capital-assets listing, incomplete budgets for some funds, untimely bank reconciliations, potential credit-card misuse, accounting inaccuracies, and weaknesses in grant management and oversight. Hupp described the potential credit-card matter as one that had been turned over to law enforcement for further review and said the charges referred for investigation did not exceed $10,000.

The audit also reported that, on a financial-reserve measure, the county's general fund held nearly five months of unassigned fund balance, above the Government Finance Officers Association's recommended minimum of two months. The auditors noted overall governmental funds were roughly balanced for the year and flagged the county had reduced its total debt position compared with the prior year, largely because of actuarial changes to pension-related liabilities and routine debt paydowns.

Separately, County Attorney Morrison told the board earlier the same day that law enforcement executed a search warrant at Mills Gas and Diesel Repair LLC and that the county had been served with a subpoena seeking records related to Mills's work for the county and emergency management. Morrison said the subpoena asks for documents covering Jan. 1, 2024, through June 1, 2025, and that county staff had received the request and would comply in a timely way.

The sheriff's office appeared during the audit discussion. Sheriff representatives acknowledged repeated findings, said they are implementing new controls and staffing adjustments, and described steps to strengthen segregation of duties, add reviews of check runs and credit-card statements, and require dual approvals for certain disbursements. Michelle Emmons, who the sheriff identified as a finance professional familiar with the office's operations, described specific changes already in place: monthly registers and check runs will be reviewed by a fiscal coordinator and the chief deputy; credit-card statements will be routed to cardholders and reviewed outside the finance office; and new credit-card policies and spending limits are being drafted.

Commissioners asked for periodic reports back to the board as the sheriff's office implements changes. The board did not take a formal vote related to the subpoena or the audit findings at the meeting; commissioners asked staff and the sheriff to return with written updates on corrective actions and with documentation showing that internal-control changes have been implemented.

Members of the public spoke during the audit discussion. Several residents asked what, if any, financial loss the county had sustained as a result of the problems described in the audit; auditors and staff said the audit did not quantify a material loss tied to the findings but emphasized the internal-control weaknesses increased the county's risk and warranted corrective action.

The county's full audit report will be posted publicly; auditors said the report and management letter would be available on the county website the next day.