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September 17, 2013

Audit: Quinlan city funds misappropriated

QUINLAN — According to a forensic audit commissioned by the Quinlan City Council, former City Consultant Billy Green misappropriated more than $60,000 in city funds for his benefit, and more than $30,000 of those funds was not reported to the IRS from 2005-2008.

The audit, which was conducted by CPA Columbus A. Alexander III of CA Forensics, shows that the city of Quinlan compensated Green in salary and expenses $541,424.40 from March 4, 2005 to April 30, 2013. The audit claims that Green misappropriated $60,365.60 and that $32,521.60 of that total was not reported to the IRS in the aggregate for the calendar years of 2005-2008.

From March 4, 2005 to Sept. 30, 2005, Quinlan reimbursed Green $0.50 per mile. That number was increased to $0.80 per mile in October of 2005, the beginning of the new fiscal year. Green continued to be reimbursed by the city for mileage until September of 2010. In a Quinlan City Council meeting on Sept. 21, 2010, the council accepted a suggestion by Green that the city not reimburse Green for mileage, and that he would submit an invoice for expenses he incurred.

According to the audit, the city council approved a written employment contract with Green on March 13, 2006, that agreed to a payment rate of $25 per hour and “reimbursement of business expenses incurred in the performance of Consultant Green’s duties...”

The audit continues to say that the mileage reimbursement rate was substantially more than allowed by the city and the IRS and was not accompanied with supporting documentation.

Green submitted reimbursement claims for 77,155 miles over the more than five-year span he was directly reimbursed for mileage.

The amount of miles varied from month to month, from as little as 210 in May of 2005 to 2,777 in May of 2009.

The city council has yet to take action on the audit, which has been submitted to state law enforcement agencies. The council is scheduled to meet again on Sept. 23.

CA Forensics did not return a request for comment by press time, and Quinlan City Attorney Brent Money said that the city did not currently have an official statement.

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