In search of $800K

Kim Chandler of The Birmingham News may have just uncovered Alabama's next big government corruption story:

Two nonprofit corporations cre­ated by three legislators in 2006 have received hun­dreds of thousands in tax­payer dollars but have yet to undergo a required state au­dit.

The two groups created in 2006 have so far received $800,000 in state coal sever­ance money, according to the Alabama Department of Finance.

Basically, the Alabama Legislature passed a bill in 2006 that diverted part of the state's coal severance tax revenue to various organiza­tions.

Let's stop right there. The bill diverted state taxes to "various organizations." They must be well established if they are getting tax dollars, right?

Wrong.

The two groups that received the money -- $100,000 each per year -- didn't even exist when the law was passed that diverted funding to them.

Who's responsible for this mess?

State Sen. Roger Bedford, D­-Russellville, State Rep. Mike Millican, D-Hamilton and State Rep. William Thigpen, D-Fayette. They popped up to create the two nonprofits five months later. Both groups were incorporated as non­profits, but neither has received federal tax-exempt status, according to the Internal Revenue Service, Chandler reports.

Neither Bedford nor Millican returned calls for this story.

Big surprise.

Well, the purpose of the groups is to "strengthen their respective counties and the surrounding area through 'economic and community development projects,'" so the money's going to worthy projects, right?

Fayette County Probate Judge William Oswalt, who formed one of the groups with Bedford and Thigpen, referred questions to them about how his group has spent the money it has received.

"I think we've given some (money) to schools, to vol­unteer fire departments, for some road work, but you need to talk to the other two," Bedford and Thigpen.

Thigpen said the group had sent money to schools, volunteer fire departments and "other things." He re­ferred questions to Oswalt, who he said serves as trea­surer of the group. Thigpen said decisions about who or what got money form the nonprofit were usually made over the telephone.

"It takes a vote of two of the three of us to approve any spending, and we usu­ally do that over the phone," Thigpen said.

Well, at the least, there are annual reports about how the money has been spent, right?

Wrong.

The 2006 law sending the money to the organizations requires that the Examiners of Public Accounts "audit these foundations and asso­ciations and submit copies of the audit reports to the Legislature annually."

However, a check with the examiners office turned up no record of an audit ever being done. The exam­iners office says it was un­aware of the existence of two nonprofit groups and the requirement to audit them.

Hmm. No one notified the examiners office? I'm sure that was just an oversight.

Bedford said previously that other legislators from Alabama coal country were using the coal tax revenue to benefit their districts.

But MOOOOMMMMMMMM!!!!! EVERYBODY'S DOIN' IT!!!!

Thigpen says the group would "welcome an audit if somebody wanted to do it."

Oh, I'm sure they will.