Failure to Submit Audits Lands Enigma, Pearson in State’s Doghouse

T.S. Carter |

BERRIEN and ATKINSON COUNTIES, Georgia – The delinquent list of the Georgia Department of Audits and Accounts, or DOAA, is the last place a financially struggling city wants to be.

It puts a black mark on the city that prevents it from getting state grants and other financial assistance.

A municipality lands there by neglecting to file annual financial audits with the DOAA. The only way off is to get caught up on overdue audits – all of them.

The timing is awful for two small South Georgia cities on the list: Berrien County’s Enigma, population around 1,100, and Atkinson County’s Pearson, population around 1,900. Both have deteriorating water systems and most likely will need the help of the Georgia Environmental Finance Authority, or GEFA, a state-funded loan program called the Georgia Fund to support water, wastewater, and solid waste infrastructure projects.

Placement on the delinquent audit list would not disqualify either of the cities for GEFA help since the assistance is a loan and not a direct grant.

But the catch is that not having up-to-date audits on file with the state keeps GEFA from having certified financial data for loan analysis. Red flags go up when the audits aren’t there.

The DOAA serves as a credit reporting agency of sorts, providing financial information to state departments and agencies making inquiries about local governments, said Jackie Neubert, a deputy director at the agency.

They typically use the DOAA’s digital dashboard to review the local government’s financial strength.

“Agencies are going in and looking at that list,” Neubert said. “This is why it is important” for local governments to get their audits in within 180 days of their fiscal year‑end.

About 120 cities are on the DOAA’s delinquent list.

Besides the delinquent list, Enigma and Pearson share a recent past marred by political disruption at their respective city halls.

Pearson Mayor Robert “Buster” Johnson is free on $75,000 bond awaiting trial on charges authorities say relate to a jail-release scheme.  Other charges from the Georgia Bureau of Investigation allege Johnson obtained kickbacks from city contracts, committed theft of municipal land and bribed a city employe.

It got worse at city hall on June 2, when the GBI arrested Mayor Pro-Tem Jeren Lemarcus Fullmore, a former Pearson assistant police chief, on charges of Burglary, Theft by Taking, and Making False Statements.

In Enigma, Doug Webb was seated as mayor after the resignation of Cecil Giddens after nearly 40 years in the seat. Giddens is awaiting trial on charges of separate assaults against city council members.

So chaotic has Enigma City Hall been with loud feuds among council members and Giddens frequently hiring and firing city hall staff, that no one was paying much attention to the city’s cash flow.

The consequence of the mayhem showed up early in the new year with the discovery of 14 bins of unopened mail tucked away in city hall closet.

The bins were full of unopened checks for business licenses, traffic citations, utilities, and other expenses.

News reports stated that one stack of paperwork dated back to 2016 and included roughly $7,000 worth of uncashed checks.

Today, Enigma is looking at the possibility of having to dig a new main well. A leak appeared a couple months ago. For now, the city has added another section of pipe as a remedy.

It’s a fix that has held up but a new well is under consideration, carrying an estimated $200,000 cost.

In Pearson, water line breaks have become common this summer, forcing the city to issue “boil water” alerts on July 27, July 12, July 9 and June 29.

News reports say local residents have repeatedly voiced complaints about poor water pressure, inconsistent service, and sometimes having no running water at all. Some even report needing to travel to neighboring counties for clean water.

Both cities are going to need help, but that likely will not happen until they submit their audits. Pearson has not handed in audits for 2022, 2023 and 2024. Enigma is tardy on audits for 2023 and 2024.

Neither Mayor Webb of Enigma nor Johnson of Pearson returned phone calls seeking statements on what their respective cities intend to do to get out of the state’s doghouse.