Clay County Highway Superintendent Indicted: Theft & Misconduct
The Office of the Comptroller of the Treasury investigated allegations of malfeasance related to the Clay County Highway Department for the period of July 1, 2020 through January 31, 2024.
The investigation included a review of selected records of the Clay County Highway Department and the following results were presented on September 11, 2024.
1. CLAY COUNTY HIGHWAY SUPERINTENDENT JASON BROWNING MISAPPROPRIATED AT LEAST $56,971.60 IN 16,200 GALLONS OF DEPARTMENT-PURCHASED DIESEL FUEL FOR HIS PERSONAL TRANSPORTATION BUSINESS
Clay County Highway Superintendent Jason Browning, age 54, misappropriated at least $56,971.60 in 16,200 gallons of department-purchased diesel fuel for his personal transportation business. Browning admitted that from July 2021 through July 2023, he used an estimated 150 gallons of department-purchased diesel fuel each week to fuel his personal Peterbilt 379 semi-truck. Browning purchased the 2007 Peterbilt 379 in July 2021 for his private trucking business, Browning Trucking.
The department has an on-site divided fuel tank that holds 2,000 gallons of diesel fuel as well as 1,000 gallons of gasoline fuel, which is used to fuel department equipment.
After purchasing the 2007 Peterbilt 379, Browning hired a driver to haul raw milk from a dairy farm to a commercial food ingredients manufacturer in Kentucky. When the 2007 Peterbilt 379 was not in transit, Browning typically kept it parked at the driver’s personal residence in Overton County. Each week, Browning pumped an estimated 150 gallons of department-purchased diesel fuel into the transfer tank on the back of his department-issued pick-up truck and drove the fuel from the department to the 2007 Peterbilt 379. On at least one occasion, Browning parked the 2007 Peterbilt 379 at the department overnight to refuel and pressure wash it. Browning sold the 2007 Peterbilt 379 in July 2023.
With the intent to benefit his personal trucking business, Browning deprived the department of resources needed to maintain the operation of the county’s roadways and increased the costs of fuel usage. Because Browning’s misappropriation of 16,200 gallons of fuel resulted in the department operating on and having less fuel on reserve than believed by department employees, his actions put the department at risk of having insufficient fuel supplies in the case of a natural disaster, large project, or any other occurrences requiring a significant amount of fuel needed to operate department equipment.
On September 5, 2024, the Clay County Grand Jury indicted Jason Earl Browning on one count of Theft of Property over $10,000 but less than $60,000, and three counts of Official Misconduct.
The charges and allegations contained in the indictment are merely accusations of criminal conduct, and not evidence. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt and convicted through due process of law.
The investigation revealed the following deficiencies in internal control and compliance, which contributed to Browning’s ability to misappropriate department-owned diesel fuel for personal use.
Deficiency 1: The department did not maintain adequate controls over fuel
The department dispensed diesel and gasoline fuel from fuel tanks located on-site but did not maintain inventory records documenting the receipt, usage, and storage of fuel. In March 2023, the department put a notebook at the pumps for employees to log fuel usage, but the department did not use the log to reconcile the amount of purchased fuel to the fuel used. The department’s failure to track and reconcile fuel usage prevented the prompt detection of Browning’s misappropriation of 16,200 gallons of department-owned diesel fuel. The failure to maintain adequate records of a consumable asset, such as fuel, weakens controls over assets and increases the risk of inventory loss.
Deficiency 2: Department employees were not required to complete and/or submit individual time records
Department employees were not required to complete and/or submit individual time records. The department bookkeeper was responsible for the time records of 23 hourly employees, including hours worked and any leave taken. According to the department’s Personnel Policy, “an employee will be paid a regular hourly rate of wage which covers all hours worked up to 40 during each work week. Anything over 40 hours per week will be paid time and a half.” The policy states that the work week will begin at 7:00 a.m. on Monday and end at 3:30 p.m. on Friday. Although time records were not individually maintained and lacked sufficient documentation, employees were eligible to accrue overtime pay. Allowing the accrual of overtime pay without proper documentation increases the risk of errors or misappropriation occurring without prompt detection.
The Clay County Highway Department is in Celina, Tennessee, and is responsible for maintaining all Clay County (county) roadways and bridges. The department operates under the direction and control of an elected highway superintendent who serves a four-year term. The department does not receive any county property tax revenue but is instead supported by local and state fuel taxes. These taxes are collected by the State of Tennessee, and a portion of these taxes are subsequently returned to the county.
A copy of the comptroller’s full report is available for public inspection at their office and may be viewed at http://www.comptroller.tn.gov/ia/.
