Forensic audit details missing records, unreported compensation and governance gaps at Crockett EDC

Travis Casper, lead auditor with Weaver & Tillwell LLP, told the Crockett City Council on Monday that a forensic review of the Crockett Economic and Industrial Development Corporation found recordkeeping, compensation and procurement problems dating from 2010 through 2022.

"We analyzed bank statements for all transactions, and reconcile those to the general ledger, including reviewing all of the check images for all of the transactions during the review period," Casper said. He told the council the audit examined about 3,300 transactions totaling approximately $12,200,000.

The audit identified six months of bank statements that were missing or incomplete; those gaps correspond to 99 payments in the general ledger for which the auditors could not locate supporting check images, a ledger value auditors estimated at roughly $450,000. "For those 99 payments, we did not have check images," Casper said, adding that the auditors know where the ledger entries indicate money went but lack bank images to verify the payments.

Auditors also flagged compensation payments paid directly by CEIDC rather than through the city payroll.…