The 2023 audit of the Augusta, Georgia Land Bank Authority, released in August, cites weaknesses in oversight and spending controls, echoing concerns raised by The Augusta Press last year.
An accompanying management letter from Augusta CPA Mattison R. Verdery further details questionable expenses and missing board review, confirming problems authority members previously denied knowing about.
The financial statements received a clean, or unmodified, opinion, which means the numbers fairly present the agency’s financial position. A clean opinion does not validate day-to-day practices, however.
Verdery’s management letter, dated Aug. 8, 2025, identifies multiple internal control and oversight weaknesses that he classifies as significant deficiencies requiring governance attention.
The letter says monthly bank reconciliations were not performed during the year and deposits and expenditures were often miscategorized. Verdery recommended reconciling each account monthly when statements arrive and presenting reconciliations and statements at monthly board meetings.
Credit card oversight was a central concern. Charge volume increased on the cards, held by Executive Director Shawn Edwards and an administrative assistant. Receipts were usually available, but the auditor found no evidence of board review or approval of card statements, the letter said.
Many charges were posted to the wrong accounts, while some meals and entertainment charges lacked any supporting documentation, it said. Some of the meals took place at pricey restaurants in cities such as Brooklyn, N.Y.
The letter flags three undocumented City Winery charges in Atlanta in December 2023. Specific reimbursements lacked board approval, including four checks written to Edwards. Two more reimbursements were flagged for mileage and location discrepancies.
Another reimbursement, a check for $1,338 included a per diem for meals plus additional meal charges. Two other payments classified for a conference DJ and bartender had no supporting documentation.
On fringe benefits, the auditor reports the executive director receives a $300 dollar monthly car allowance without documentation of whether the authority uses an accountable or nonaccountable plan under IRS rules, which determines whether the stipend is taxable.
In some cases Edwards was reimbursed in addition for mileage. The auditor recommends the board adopt a written policy that clarifies the plan type and the rules for car allowances and mileage to prevent double payment and ensure proper tax treatment.
“My recommendation for strengthening internal controls regarding employee reimbursements is for the reimbursement to be completed after traveling and for a board member to review the request for reimbursement along with all supportive documentation. I also recommend that all meal receipts be submitted and reviewed by a board member in alignment with the purpose of the meal,” Verdery wrote.
Edwards offered explanations in late 2023 after much of the spending was first reported. He needed a $4,000 cash advance, for instance, because his credit card had been compromised. The Augusta Press reported he had used credit cards on the same trips and little documentation showed how the cash was used.
Members of the authority include officials entrusted with management and oversight of public funds, including the Augusta administrator, planning director, chief appraiser and the elected tax commissioner, along with private-sector designees.
At its meeting Wednesday, the authority received a copy of the audit. Chief Appraiser Scott Rountree noted it was a clean report that had areas to address, including the frequency of reconciliations and questions about the director’s car allowance.
In the wake of controversy that followed reports of the issues last year, the authority vowed to change last year and adopted an entertainment and travel policy in October 2024. The policy requires that travel and entertainment purchases, as well as any out-of-the-ordinary expenses, be pre-approved by the finance committee. Adult-themed venues are no longer allowed.
Last month the authority voted to hire a new auditor, Baird Audit Group, which is conducting the 2024 audit.
