CPA had a contractual obligation but has refused to fulfill it

The ,018 increase in our Water and Sewer Rates has been tabled for the workshop to be held on September 18th as well.  Some of the major reasons are because of complaints made to our Mayor and to other council members.  The citizens do not feel a rate increase is warranted because they are not treated well at Town Hall and they are not receiving anything more for the rate to be increased.  Different complaints were sited and I can understand how some feel about this matter.


As you are aware, Mr. Daniels our current CPA, per contract, has been invited to speak to our Council and the Public again about items they/we did not understand when Mr. Daniels was in attendance and when he advised the Town that we are short of cash.   Our Town Attorney, Meagan Logan contacted Mr. Daniels to ask him to comply with his contract and attend the September Meeting.  Instead she received a letter from Mr. Daniel’s attorney so our Attorney Logan contacted his attorney.  Daniel’s attorney stated he may be willing to come back but in speaking with Mr. Daniels, he anticipated that the Town would not endorse his audit and would criticize it and pick on the manner in which it was prepared.   The Attorney stated that Mr. Daniels will not be appearing VOLUNTARILY.


As the blog mentioned, Mr. Daniels was made aware of how he was allowing and giving instructions to our Town Staff  of  how to misappropriate Local Option Fuel Tax Funds. Per the State Revenue Department, no CPA would even consider doing what Mr. Daniels has done which was verified by his own emails and when we at the blog complained, Mr. Daniels not only made excuses relating to the word “operations” but somehow had Rhett Bullard, an attorney himself, and Spencer Lofton, believing that “operations” was some kind of umbrella that allowed the Town to use funds as they liked.  And furthermore, that the Attorney General’s opinions were merely “Opinions” and need not be followed…for which Town Attorney Logan explained how the opinions were an extension of the actual law at the meeting.


When Joe Griffin prevailed with sending Mr. Daniels the law relating to LOFT, Mr. Daniels threatened Griffin with Harassment.  Daniels was not worth the trouble to retain the fight at the time.  We know that if the State ever decides to do something about the money which was misappropriated….some $750,000…Mr. Daniels will be a party of interest and most likely will have to file a malpractice claim, as will Attorney Karen Hatton and possibly Rhett Bullard.  To break State Laws is a serious matter and Attorney Logan has stated that to date, the Attorney General has not responded to Karen Hatton’s letter of inquiry on behalf of the council….which was written more as a confession of admission than an inquiry.


When asked whether we should go forward legally to have Mr Daniels forced to attend, Ms. Logan stated that it would cost us $400 initially just to get the complaint off the ground; then there would be depositions, and the costs would be prohibitive. So, it was determined that the matter would go no further and there would be no legal actions taken.  Mr. Daniels had a contractual obligation and he has refused to fulfill it.  Councilman McKenzie was sad because he stated that Ken Daniels helped him understand certain aspects of an audit, he had never understood before……We need to start fresh, just in case Councilman McKenzie may have honed in on misinformation.


Karin for the blog

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