Wedowee Mayor Tim Coe addresses audits, recent Utilities Board findings
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By Erica Thomas – 1819News.com
(The original version of this story can be found on the 1819News.com website here.)
Wedowee Mayor Tim Coe responded to concerns with the Wedowee Utilities Board after a preliminary audit revealed several potential issues with bookkeeping and the handling of funds. The audit flagged “serious internal control weaknesses, financial mismanagement, compliance violations and governance issues.”
Coe said that although he has requested to view the audit report, he has been unable to obtain a copy. However, he said if auditors found issues, he is pleased that those are being addressed.
“I’m on board with all transparency,” Coe told 1819 News.
After operating in much the same way for 20 years, Coe said he is unsure why the issues came to light in the past year and claimed that previous audits did not find any problems.
“Let me back up a little bit,” Coe said. “Nothing had changed in the way we operated for probably 20 years that I was involved, so you know, we’ve had audits every year, and all of a sudden, for the first time, that comes up. That made me wonder a little bit about who did the audit and the reason that things like that came up that had never come up before.”
“ … It’s concerning to me,” he added. “I wouldn’t call it upsetting, but it is concerning to me. Not so much. I mean, the fact that it’s coming out, but also the fact that it didn’t come out for all these other years and all of a sudden we got this big problem. That’s, to me, that’s a little suspicious.”
Coe said the utility board used the same auditor, David Denton, for years, until his death in 2022, then continued to use the same firm. The utility has since switched to MDA Professional Group for audits. (MDA bought out Denton’s firm and took over operations in his former Roanoke office. It is one of five office locations the the accounting firm has in Alabama.) That is the company that flagged possible issues.
During his time either as a board member or employee of Wedowee Utilities, Coe said the board had minimal involvement in day-to-day operations. He said the board approved major purchases, hirings and firings and bill payments. After board approval, Coe said he signed checks, along with former bookkeeper Brenda Boone. When asked to clarify Boone’s position with the utility, Coe said the board did not designate her as “manager,” but that she was considered the manager. She has since been let go.
Coe said he would like more information on why auditors flagged a “lack of bookkeeping oversight” in the report, although he agreed there should have been someone in place to take over if the “manager” was unavailable. Coe said Boone had to start from scratch when she was hired over 20 years ago. He said she knew where every penny went and kept solid records. Coe believes many questions would have been answered if Boone had been given the opportunity to stay on with the utility during the transition to a new director.
The new board has since established policies and hired a new director.
Coe acknowledged that some changes made by the new utility board appear positive. He said additional oversight and organizational improvements could be beneficial. He acknowledged that if an audit found issues with finances, including discrepancies with payroll taxes, those issues should have been corrected.
“I can’t defend that,” he said regarding the audit’s finding involving possible unpaid or unfiled federal payroll taxes. “They should have been paid on time.”
However, Coe said he is concerned that the board recently purchased a new building from current Wedowee Utilities Board chairman Barry Waldrep. While the new building provides a drive-through and vault for sensitive documents, Coe said he is concerned about the purchase process.
“When this building is from the chairman of the board, that’s an issue with me,” Coe explained. “I think that’s something that needs to be investigated. We’re going to get the attorney general, and we’re doing all this stuff. I think that’s something that needs investigation.”
The Wedowee Utilities Board unanimously approved the purchase of the new building at 105 Main Street. Waldrep was a part of the meeting to purchase the building, but the board requested a new vote without Waldrep’s presence to avoid the appearance of impropriety. The board then approved the purchase for a second time. Waldrep said he welcomes any investigation into the purchase. He said the utility received a commercial appraisal of the building to determine a price. He said the utility had to either build a new office or purchase a new one for security and accessibility purposes.
“The bottom line is, I don’t care what anybody says about the building,” Waldrep told 1819 News. “It was all done legitimately. Tim Coe was the first person to bring up my building, saying that it would be a good place for the utility board because it had a drive-through. The utility board in the past had made bids on that building long before I ever bought it. I didn’t buy this building to do something or resell it to the utility board. This building was used for many things before I ever got on the utility board.”
Waldrep said citizens are welcome to visit the Wedowee Utilities Board with any questions.
Coe also addressed a new report by the Randolph Leader showing he was paid approximately $670,000 in vendor checks, in addition to his regular pay, from 2005 to 2017. He did not remember what his regular pay was at that time. Documents provided to 1819 News confirm the vendor payments.
Coe confirmed he received those vendor checks to cover chemicals for the city’s lagoon and to cover mileage. According to minutes from a Sept. 13, 2007, board meeting, the utility approved Coe’s reimbursements for chemicals if needed. Coe told 1819 News that the mileage paid from vendor checks was also to cover other duties. According to expense reports, Coe routinely claimed more than 1,400 miles per month in mileage reimbursements.
When purchasing chemicals, Coe said he drove to a location he believed was in the Anniston area, although he was unable to provide the company’s name or exact location. He said he believes there are invoices to match each check he received for chemicals, but he said he often paid cash for them. He said that because the transactions took place nine years ago, it would take him some time to find the documentation.
While it is unclear which company previously sold chemicals to the utility, Norwalk Wastewater Equipment Company (Norweco) has been used since 2016.
The first checks paid to Coe in January 2005 totaled $506.60. The payments for both lagoon maintenance, mileage and lagoon chemicals increased over time, and by January 2006, the total was $3,286.58. By 2013, the payments consistently totaled over $5,000 per month through 2017.
Utilities director Randy Benefield claimed in a utility board meeting last week that the chemicals purchased for the lagoon total $1,700 per year. Upon further analysis, he said that the total is now roughly $2,900 per year. Still, he said that it is much lower than the monthly cost reflected in checks written for the chemicals nine years ago.
The last vendor payments to Coe for repairs and maintenance came in November and December 2017. There was also a $3,500 bonus on Nov. 12, 2017, written as a vendor check. Coe told 1819 News bonuses, which were flagged in the audit report, were pre-approved as part of the utility’s budget. It is unclear who continued lagoon maintenance after Coe’s retirement.
Coe continued to receive director’s fee checks of $125 per month until 2020. From 2021 to 2025, he received $600 a month for director’s fees, records show.
Benefield said in the meeting and in an interview with 1819 News that he is working to provide transparency and he is not accusing anyone of wrongdoing. He said he feels it is only fair to be transparent about how ratepayer funds are spent.
The Wedowee Utility Board has approved an audit to investigate finances dating back to 2005.
When asked whether he had felt the impact of controversial headlines and social media chatter from his small town, Coe said he hasn’t experienced any negative feedback from businesses.
In reference to an investigation by the Alabama Attorney General’s Office, Coe expressed concern that he has not been contacted by investigators. Fifth Judicial Circuit District Attorney Mike Segrest said he contacted the AG’s office over the possible misuse of public funds following the audit findings. Coe said he wants his constituents to know he is confident no wrongdoing will be uncovered.
“Just be patient until the final results come out,” Coe said.
