An audit of the North Lee County Water Association in Mississippi turned up widespread financial management problems, including violations of several state and federal laws, the Daily Journal (Tupelo, MS) reports.
The audit, which is likely “the most rigorous examination ever” of the nonprofit cooperative's financial records, comes on the heels of a $1.2 million loan from the U.S. Department of Agriculture Rural Development Administration.
While copies of the audit are required to be available for public inspection, the water association did not comply with state law.
The association has been plagued with problems, according to the Daily Journal.
Rust-colored water and frequent boil notices have been part of North Lee’s water quality problems for years. In October 2011, all board members resigned amid allegations of misconduct and falsifying water reports. Former North Lee manager Dan Durham pleaded guilty in federal court in 2012 to falsifying the water reports and received probation.
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