Chattooga County Sole Commissioner Andy Allen says the county is making significant financial progress, pointing to the recently completed 2025 audit and changes in county accounting procedures as evidence of efforts to improve financial management, strengthen oversight and maintain adequate cash reserves.

Allen says the county has reached a point where it can operate without borrowing money to cover routine expenses while waiting for property tax revenue. At the same time, the newly released audit identifies several areas where the county needs to strengthen its accounting practices and internal financial controls.

One of the most significant changes being implemented involves eliminating traditional checkbooks in county departments.

Allen told WZQZ News that, going forward, all county checks will be issued through the county’s financial software system rather than through individual departmental checkbooks. The change is intended to provide more consistent records of expenditures and improve financial oversight.

County No Longer Relying On Short-Term Borrowing

Allen described the county’s bookkeeping situation when he took office as a nightmare, saying the financial condition was worse than he initially realized.

He said the county previously relied on tax anticipation notes, which function much like short-term lines of credit, to cover operating expenses while awaiting property tax collections.

The county borrowed money through those notes in 2025, but Allen said it has not needed to use a tax anticipation note during 2026.

The commissioner credited the county’s bookkeeping team and other employees with helping improve financial operations.

Allen also said the 2024 audit had not been completed when he took office, making it difficult for his administration to determine the county’s financial position.

General Fund Balance Declined During 2025

The 2025 audit shows that Chattooga County’s General Fund ended the year with a balance of approximately $5.84 million, compared with $6.95 million at the end of 2024.

That represents a decrease of approximately $1.1 million during the year.

The county collected approximately $10.2 million in taxes during 2025, compared with $11.2 million the previous year.

General Fund expenditures totaled approximately $13.5 million, an increase from approximately $12.99 million in 2024.

Public safety accounted for the largest share of expenditures, totaling approximately $6.2 million. That included approximately $2.7 million each for the Sheriff’s Office and county jail.

General government spending totaled approximately $2.55 million, while judicial expenses were approximately $1.86 million. Sanitation expenditures totaled approximately $1.34 million.

Despite the decline in the General Fund balance, the audit also reflected reductions in certain financial obligations.

Accounts payable declined from approximately $542,724 at the end of 2024 to $209,307 at the end of 2025.

The audit also showed no General Fund interest expense in 2025, compared with $33,258 in 2024.

The absence of interest expense in the General Fund does not mean the county had no borrowing during 2025. Allen has acknowledged that the county used tax anticipation borrowing that year.

Auditor Identifies Four Significant Deficiencies

The audit was prepared by certified public accountant Chrysan Thomas and covers the year ending December 31, 2025.

The auditor issued an unmodified opinion on the county’s financial statements, meaning they were fairly presented in all material respects under generally accepted accounting principles.

However, the auditor also identified four significant deficiencies involving accounting procedures and internal financial controls.

No material weaknesses were identified.

The findings involve financial recordkeeping in certain court offices, the separation of accounting responsibilities, Water Department bookkeeping and cash handling procedures.

A significant deficiency is an accounting or internal control problem important enough to warrant the attention of county management, although it does not meet the more serious classification of a material weakness.

Court Offices Need Improved Accounting Records

The first finding involved custodial funds maintained by the Probate Court, Magistrate Court and Clerk of Superior Court.

These funds generally consist of money held by county offices on behalf of other governments, organizations or individuals.

The auditor found that the offices were managing those funds without using general ledgers and that procedures were not in place for regular reconciliation of account balances.

The report also identified older outstanding funds that had not been disbursed.

The auditor recommended implementing proper general ledgers, regular reconciliations and procedures for reviewing outstanding balances.

In its response, county management agreed with the finding and said custodial funds would begin using general ledgers through the county’s Harris financial software.

Concerns About Separation Of Financial Duties

The second finding involved insufficient separation of financial responsibilities in some county offices.

The auditor explained that sound accounting practices generally require different employees to handle authorization, custody of funds, recordkeeping and reconciliation whenever possible.

The audit found that some employees were performing overlapping financial responsibilities without sufficient independent review.

The report attributed part of the problem to limited staffing in certain offices.

According to the auditor, inadequate separation of duties increases the risk that financial errors or misappropriation of funds could go undetected.

County management agreed with the finding and said it was implementing procedures to improve accounting controls and separate employee responsibilities when possible.

Water Department Records Required Significant Corrections

The third finding involved accounting procedures in the county Water Department.

The audit found that Water Department financial activity was being maintained in two separate accounting ledgers, one at the Commissioner’s Office and another at the Water Department.

Those records were not being reconciled properly throughout the year.

The auditor reported that the initial accounting records contained materially misstated balances involving cash, expenses and grant activity.

The records required substantial reconstruction and numerous correcting entries before reliable financial statements could be prepared.

The audit attributed the problems partly to insufficient accounting training, unfamiliarity with the county’s bookkeeping system and a lack of supervisory review.

The auditor recommended additional employee training, monthly reconciliations of bank accounts and loan balances, better documentation and stronger oversight.

The report also noted that similar conditions had been identified in previous years and recommended a formal corrective action plan.

County management responded that software training would be provided and additional oversight implemented to improve the accuracy and timeliness of financial records.

Cash Handling And Sheriff’s Office Accounting

The fourth finding involved cash handling and accounting procedures in county operations.

The auditor found that deposits were generally prepared and delivered to the bank by a single bookkeeper without another employee independently reviewing the process.

The report also identified accounting issues involving Sheriff’s Office funds, where financial activity across multiple funds was maintained in a single ledger.

Correcting entries were required to properly reflect certain 2025 financial activity and year-end cash balances.

The auditor recommended involving another employee in deposit procedures, maintaining separate accounting records for individual funds and conducting regular reconciliations.

County management agreed with the recommendations and indicated that procedures were being implemented to improve accounting controls and safeguard public assets.

The audit findings identify weaknesses in financial procedures and recordkeeping. They do not establish that county funds were stolen or misappropriated.

Eliminating Departmental Checkbooks

Allen says the decision to eliminate traditional checkbooks throughout county departments is part of the effort to address financial oversight concerns.

Under the new procedure, checks will be issued through the county’s financial software system rather than being written independently from departmental checkbooks.

The change is designed to provide a more consistent accounting record of payments and make expenditures easier to track and reconcile.

The county’s written responses to the audit also outline plans for additional employee training, improved accounting procedures and greater supervisory oversight.

The auditor’s recommendations extend beyond check-writing procedures, calling for regular account reconciliations, independent reviews and better separation of financial responsibilities.

Sales Tax Revenue Helping Fund County Projects

Allen also credited voter-approved sales tax initiatives with helping the county fund transportation improvements and reduce pressure on property tax revenues.

He pointed to the county’s ability to cover part of the cost of a new bridge near Spring Creek Road using transportation sales tax revenue rather than relying entirely on property taxes or other general revenue.

The commissioner said those funding sources have helped the county continue infrastructure improvements while managing its operating expenses.

Commissioner Says Work Continues

Allen maintains that the county’s financial position has improved during 2026, despite the accounting problems and declining General Fund balance documented in the 2025 audit.

He said the county has not needed to borrow money this year to meet routine expenses and credited county employees with helping improve the government’s financial management.

The audit provides a detailed accounting of the county’s financial position at the end of 2025, while the commissioner’s comments describe changes and financial developments during the current year.

The county’s next annual audit will provide a more complete picture of how those changes affected its financial operations and whether the deficiencies identified in the 2025 report have been corrected.