Chattanooga Fleet Garage Audit Finds No Criminal Intent Behind $1M Overspending
City auditor clears staff of wrongdoing but flags significant budget controls failure in fleet operations.
Source: WTVC ↗
A municipal fleet garage audit that uncovered more than $1 million in unauthorized parts spending found no criminal intent by the employees involved, though investigators documented repeated circumvention of the city’s internal purchasing controls.
City Auditor Stan Sewell told Chattanooga’s audit committee that garage management bypassed the standard software that automatically flags spending approaching contract limits. Sewell said he believes the garage would become overwhelmed with work and make purchases outside internal controls, and that he does not think there was criminal intent behind the mismanaged funds.
The audit covered Chattanooga’s Fleet Management division, which runs two garages servicing vehicles from sedans and pickups through refuse trucks, heavy equipment and fire apparatus. Reviewers examined contracts with two vendors: Lee Smith, doing business as Thompson Truck Group, and Ken Smith, doing business as Mid America Parts Distributor.
Findings included unauthorized spending above approved contract limits and widespread pricing discrepancies in the city’s procurement process. Some fleet employees were placed on administrative leave following the audit.
The audit committee met and received Sewell’s presentation on the findings.
