Audit flags $2.55 million shortfall in excess fees; clerk says steps taken and seeks AG opinion on credit card recommendation

A follow‑up audit presented to the Audit Committee found significant reconciling issues in the Circuit Court Clerk’s office that resulted in an approximately $2.55 million shortfall in excess fees owed to Metro for the period Jan. 2023–Dec. 2024.

Auditors said the office’s practice of remitting an agreed‑upon budgeted amount without a month‑by‑month true up meant Metro likely did not receive the full excess fees calculated under state statute. “We recalculated using bank statements and accounting records and found approximately $2,550,000 was underpaid to Metro,” auditor Jeremy Waldorf told the committee.

State law requires excess‑fee calculations and periodic remittances; auditors recommended the clerk’s office implement a transparent calculation process, reconcile with Metro Finance, and send the statute‑required monthly statements to the mayor’s office. The clerk’s office accepted the recommendation and has begun steps toward implementation.

The audit also reviewed the Traffic Violations Bureau (TVB) payroll treatment and found ambiguity over which positions were part of the TVB (a Metro budgeted function) versus general circuit‑court staff; auditors recommended reconciling positions and aligning payroll coverage to ensure accurate excess‑fee calculations. That recommendation was accepted and staff reported work is underway to clarify language and reconcile roles.

Auditors examined the clerk’s office credit card, which is issued in the clerk’s office name and not on Metro’s bank. While auditors did not find improper business expenses, they noted two late payments that incurred interest and a $1,500 cashback rewards balance enabled on the card — a governance risk. Auditors recommended using a Metro card to improve transparency and alignment with Metro finance policy; the clerk rejected that recommendation, citing a 1986 declaratory judgment that he said exempts his office from Metro purchasing rules and said he has submitted a request for an Attorney General opinion.

Clerk Day told the committee he remedied inadvertent tax‑exempt settings on the card, worked with vendors to obtain credits, and remitted the auditor‑calculated amount to Metro Finance. “I was in agreement” with much of the audit, Day said, but added some figures differed from his internal audit’s recreation; he said he is working with Metro Finance and the audit office to reconcile remaining questions and to develop standard monthly reporting.

Clerk Day provided ticketing and fine totals and collection metrics during questioning: year‑to‑date parking tickets issued were 67,000 with December numbers outstanding; total fines reported were about $1.7 million in 2023 and $1.9 million in 2024 (a $252,000 increase). He also described a roughly 60% average collection (‘clip’) rate for citations and explained historical reserves such as three months’ salary driven by prior budgeting practices.

Audit staff said Clerk Day has been cooperative; the clerk’s office, Metro Finance, Metro Legal and the mayor’s office are working to establish a reconciled reporting template and monthly statements, with staff targeting rollout in January.