An independent audit commissioned by the Town of Oakman has uncovered serious gaps in the town’s financial record‑keeping. The audit, performed by Northport Certified Public Accountant Don Wallace, issued a “disclaimer of opinion,” the most severe finding short of fraud, indicating that the town’s financial statements cannot be relied upon.
Failure to Meet State Audit Standards
The report states that Oakman “had not complied with state audit requirements since fiscal year 2019, leaving no reliable trail for fixed assets, loans or other balances carried into the current audit.” Because the town fell out of compliance, officials hired an outside CPA to conduct an audit that would satisfy state standards.
Missing Documentation for Payments
One of the most troubling items is a $1,748.59 payment listed as “Cory Franks for police supplies” in 2024. The audit found no supporting documentation for this disbursement. The same amount appears in the felony indictment of former Mayor Cory Franks, who is accused of allowing his daughter to use a town‑owned 2021 BMW 528i and of taking all or part of a $1,748.59 town check.
Wallace’s audit also notes that many town checks were signed by only one individual, despite a requirement for two signatures. Several of the flagged payments, including the one tied to the indictment, were signed by a single official.
Rebuild Alabama Funds Not Segregated
The audit discovered that Oakman does not maintain a dedicated bank account for Rebuild Alabama funds. The CPA could not confirm that these restricted monies were placed in the required accounts and raised the possibility that they may have been deposited into the town’s general fund instead.
Other Questionable Costs
A “Schedule of Questionable Costs” listed in the audit includes additional payments made in cash, to former and current town officials, and to other unnamed recipients. None of these entries were accompanied by the documentation required under state law.
Impact of Staff Turnover
Frequent turnover among town staff has further complicated record‑keeping, making it difficult to locate backup documentation for disbursements across the town’s funds. The audit notes that the lack of records prevented the auditors from determining whether additional adjustments might be necessary.
Municipal Court Records Lacking
The audit also found that there is virtually no documentation for Oakman Municipal Court for fiscal year 2025, raising additional concerns about transparency and accountability.
Town Response
Town officials have acknowledged the audit’s findings and indicated that they are working to improve internal controls, establish a dedicated Rebuild Alabama account, and ensure compliance with state audit requirements moving forward.
Residents are encouraged to stay informed about the town’s efforts to address these deficiencies and to participate in upcoming public meetings where the audit’s recommendations will be discussed.
Original reporting: The Tuscaloosa Thread — read the source article.
