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Commission authorizes transfers to cover Circuit Court Clerk cash shortage after employee-theft claim
Summary
Following an employee-theft claim, the commission approved a resolution directing finance staff to transfer funds to the Circuit Court Clerk and General Sessions Court funds; insurance proceeds are expected and the county will advance funds to liquidate the shortfall.
The Claiborne County Commission approved a resolution authorizing transfers to the Circuit Court Clerk and General Sessions Court funds to liquidate a cash shortage resulting from an employee-theft claim.
Commissioner David Mundy sponsored Res. 2024-063, which states the Circuit Court Clerk expects $136,503.25 in insurance proceeds. The resolution records remaining shortfalls as $134,499.75 owed to the Circuit Court Clerk fund (No. 45520) and $348,400.62 owed to the Claiborne County General Sessions Court fund (No. 45540), and directs the Finance Director to transfer funds as needed so the Clerk's offices are made whole. The minutes note the Tennessee Comptroller's Office supervisor, Mark Treece, recommended and requires the transfer to liquidate the shortage.
The resolution passed by roll call and instructs the finance department to remit funds to the Clerk's office; the minutes record that remitted funds will be repaid to the county when insurance proceeds are received. No detailed timeline for reimbursement appears in the minutes; the resolution directs transfers to be made "upon receipt" of funds from the county to the Clerk as necessary to liquidate the shortage.
The action is recorded as a county-level administrative transfer to correct an internal fund deficit caused by employee theft and to satisfy audit recommendations from the Comptroller's office.
