Audit flags animal shelter change order and auditors' exit process; mayor's office says project fully funded

The Coffee County Audit Committee reviewed an audit finding tied to the county animal shelter capital project, approved by the legislative body on March 11, 2025. A mayor's office representative told the committee the project is fully funded with private donations and proceeds from county land sales rather than county tax revenue and is being tracked in a capital projects fund where formal budgeting is not required.

The representative said an improved change order for unsuitable soil was posted to the project's purchase order before the prior fiscal year was closed, which produced an overage even though the change order used a July posting date. "If your fiscal year is still open and it's a purchase order it's going to adjust the balance on the prior year," the representative said, explaining how the timing produced the accounting effect.

The mayor's office representative also described concern about how auditors communicated the finding. The representative said auditors sent the findings by email the night before the scheduled exit meeting and requested signatures before the exit discussion, leaving staff feeling blindsided: "I found out I had an audit finding" and "I was never asked, 'Hey, this is missing. Do you have it?'" The representative said they will seek clearer pre-exit communications in the future and, if necessary, escalate the issue with audit leadership.

Committee members described the issue as procedural and related to timing of transaction posting rather than an absence of funding for the project. Members recommended attention to post-closing adjustments and to giving staff an opportunity to explain transactions in the exit process.

No formal policy changes were proposed at the meeting; staff said they would adjust accounting entries where appropriate and pursue improved auditor communication.