State Auditors Direct Review of NES Spending

State Auditors Direct Review of NES Spending

CREATED Nov 17, 2011

By Phil Williams
Chief Investigative Reporter

NASHVILLE, Tenn. -- State auditors have ordered an audit into how Nashville Electric Service spent ratepayers money.

Our NewsChannel 5 investigation first exposed how NES president Decosta Jenkins and other top officials charged ratepayers for expensive hotel rooms, fancy dinners, alcohol, even hotel movies.

As a result, some Metro Council members this week asked Metro auditors to take a look.

But Thursday, NES officials revealed state auditors have already ordered the company that audits the utility's books to investigate those issues.

Here is the statement from NES spokesman Tim Hill:

We are aware of Councilman Claiborne's letter requesting the Audit Committee of the Metropolitan Government to look into certain aspects of the operations of NES.  The State is responsible for auditing large municipal entities such as NES and Metro.  In many cases the State will delegate that responsibility to a third party.  In the case of NES, Deloitte has been delegated that responsibility by the State.

We have been advised by representatives of Deloitte that the State has requested that Deloitte expand its audit to include a detailed review of the credit card charges and expense reimbursement forms of the Board and Management.  We are cooperating with Deloitte in this project.  We hope to provide them all the information that has been requested by next week.  We have not been apprised of the nature, timing, and scope of the audit but we assume that Deloitte will complete its audit in December and communicate the results of its findings to the State at the conclusion of its audit.  We assume we will be provided a copy of the report provided to the State.  It is our plan to explain this to the Audit Committee of the Metropolitan Government and offer them a copy of the report.

We plan to distribute the report to all interested parties including the Mayor's Office and members of the Metropolitan Council.  

So far, Jenkins has paid back more than $800.

E-mail: pwilliams@newschannel5.com

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Council Members Request Audit of NES Spending

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