DUANE SHERRILLEditor

The executive director of the Coffee County Drug Court Foundation retired from his position on the eve of the release of a scathing comptroller citing major mismanagement within the fundraising arm of the local nonprofit organization.

CCDCF Director Mike Lewis reportedly tendered his retirement papers Thursday, one day before the state released the detailed report questioning the financial handling of the Foundation. The Drug Court is a two-year treatment and after-care program for nonviolent offenders in Coffee County. The Foundation is overseen by a board of directors which investigators determined had limited oversight of Lewis, the group not meeting since 2021 and having no meetings in 2020. Tennessee’s 82 recovery courts are judicially-supervised court dockets that reduce correctional costs, protect community safety, and improve public welfare. In recovery courts, non-violent individuals with substance use disorders participate in treatment while under close legal and clinical supervision.

The Comptroller’s Office has shared the results of the investigation with the U.S. Attorney’s Office for the Eastern District of Tennessee and the Office of the District Attorney General of the 14th Judicial District for potential federal and state investigation. The eight findings are summarized below:

1.   The Internal Revenue Service assessed the foundation $235,922 in penalties and interest for failing to pay payroll taxes and file IRS forms timely. These problems began prior to 2014.

2.  The executive director improperly expended $224,698 of SBA COVID-19 relief funds on the late payment of payroll taxes.

3.   The executive director made questionable discretionary payments to himself and employees for unused leave and comp time balances totaling $155,417.

4.  The executive director made improper payments to himself and other employees totaling $45,386. The executive director overpaid himself $6,526.

5.   The executive director submitted the same expenditures totaling $7,684 for reimbursement to at least two different grants.

6.  The foundation received questionable grant funds totaling $17,381.

7.   The executive director submitted incorrect information to the Small Business Administration for COVID-19 funding.

8.  The executive director maintained inaccurate and incomplete financial records.

“While the executive director’s mismanagement is apparent, the foundation’s board must also share the blame,” said Comptroller Mumpower. “During our investigation, we determined the board has not held any meetings since November 2021. The board also held no meetings in 2020. The board has clearly allowed the executive director to have too much control without the proper oversight of operations and finances.”

The Coffee County Drug Court Foundation (foundation), incorporated as a nonprofit on April 14, 2008, and located in Manchester is governed by a three-member board of directors (board) and provides drug inpatient and outpatient therapy, testing, and other services within Coffee County.

The board employs an executive director that is responsible for operations at the foundation as well as grant management and financial activity.

According to the most recent tax paperwork that could be located, Lewis was compensated $89,653 in 2019 for his work as executive director. 

John Coffelt of the Manchester Times contributed to the writing of this story