Augusta departments face audit over $2M in fines from IRS

AUGUSTA, Ga. (WRDW/WAGT) – Augusta metropolis departments seem more likely to get an inside forensic audit after leaders came upon prior to now month that town owes the IRS not less than $2 million.

In an Augusta Fee committee assembly Tuesday, fee member Catherine Smith McKnight pressed ahead with a movement for subsequent week to forensically audit a number of departments in Augusta.

“It simply looks as if the plot retains getting thicker. We will begin there, the mayor’s division, and randomly select all of the departments to look into as to the place the cash goes,” she stated.

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The trouble moved ahead with help from Commissioners Stacy Pulliam, Francine Scott, and Wayne Guilfoyle. And Mayor Garnett Johnson gave a silent up-and-down nod.

“I believe that’s a fantastic concept. Particularly on the division degree. I’ve at all times stated that we owe transparency to the constituents, and to the taxpayers. There are different neighboring companies that do the same course of to the place they’re not solely auditing the financials but additionally take a look at their inside processes and the way they work,” stated Johnson.

It will begin with the mayor’s workplace from 2020-2022 – a time when Hardie Davis was serving within the place.

“One thing is wonky that goes on financially that I haven’t been ready to determine,” he stated.

It’s a requirement for solutions that’s been occurring for years.

However Augusta Finance Director Donna Williams cited Grovetown’s 15-month audit of its water division that ate over $100,000, implying it might go over one million if Augusta audited its personal authorities departments one after the other.

“What a forensic audit would do, would hint every a kind of transactions again to its unique supply doc. That’s the rationale these are usually costlier and extra time-consuming,” stated Williams.

Whereas Johnson is supportive of transparency, it’s unclear if the audit vote will make it by the fee.

McKnight stated: “I’m not pointing fingers, however on the similar time, I wish to know the place the daggone cash is, that we are able to’t get issues finished.”

Beneath the Inexpensive Care Act, employers like town are required to file annual paperwork with the Inside Income Service associated to the supply of staff’ medical health insurance protection. Not submitting that paperwork can carry penalties.

That’s what occurred with town.

The mayor says an outdoor authorized counsel has been employed, and U.S. Rep. Rick Allen may assist Augusta leaders determine this subject.

Information 12 has filed open data requests to see the paperwork and learn the way deep the issue goes.

However $2 million might be the tip of the iceberg or might be the full quantity, relying on what number of years town did not file the paperwork.

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