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Audit office reports manipulation of business-license workflow at county clerk; controls and software changes in progress
Summary
Internal Audit reported that an employee at the Davidson County Clerk's office manipulated the business-license workflow so some licenses printed without recording cash receipts; video evidence supported the finding, the employee resigned in November 2024, and the clerk's office is implementing supervisor-approval controls and spot checks.
Internal Audit presented an investigative report into cash misappropriation at the Davidson County Clerk's office. Auditors said a staff member manipulated workflows so licenses could be printed without recording the required cash receipt, enabling the employee to take cash that did not reconcile to system records. Video evidence corroborated the missing cash for some transactions.
Audit staff explained the underlying mechanics: the system differentiates a "minimal activity" business license (which requires payment before printing) from a "standard" business license (which does not), and the employee was able to bypass the payment requirement by manipulating the system to print a standard business license without recording payment. The auditor said the employee resigned in November 2024.
County Clerk Wynne told the committee the state changed thresholds for license types (reference date given as January 24), which she said contributed to confusion. Wynne said the office is working with the software vendor to require supervisor approval for any change in license type and has hired an additional position to perform spot checks, review camera footage, and strengthen reconciliation controls.
Committee members asked whether Metro should stop accepting cash for license transactions; Wynne said some customers insist on paying only with cash or check (to avoid card fees), and removing cash would create accessibility issues for some customers. Audit staff and committee members requested follow-up on whether resigning employees' records reflect reasons for departure to reduce the risk of similar misconduct in other jurisdictions.
Audit staff said they will monitor and follow up on the software changes, supervisor-approval implementation, and reconciliation procedures that the clerk's office has begun to put in place.
