Welaka leaders authorize investigation into failure to complete mandatory audits
Welaka, a town in Putnam County, could lose its town charter depending on the results of an investigation town leaders just authorized.
At a town council meeting on Tuesday, leaders announced they have until Friday to respond to Florida about years of failing to submit an audit with the state.
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Each Florida municipality has to file an audit with the state showing how it spends its money to ensure accountability, improve financial management, and maintain public trust. However, Welaka didn't.
'We all hope we had more time early on. Could've seen this coming, but here we are,' Town Attorney Jeremiah Blocker said in a meeting Tuesday night.
Internal emails show all of this happened under the watch of then-mayor Jamie Watts.
Action News Jax previously reported Watts was involved in a sexting scandal that put the town on shaky legal ground. There were allegations of harassment and revenge porn.
RELATED: Investigates: Troubling accusations against mayor of Welaka
RELATED: INVESTIGATES: Town of Welaka addresses sexting mayor accusations, Action News Jax coverage
Now, state records indicate Watts put the town's funding at risk.
'We had been warned several times and none of us knew anything about it,' Councilwoman Kimberly Dugger said at Tuesday's meeting.
Starting in 2023 the Joint Legislative Audit Committee made Watts aware the town was out of compliance and the consequences of that.
The committee followed up multiple times, finally instructing the Department of Revenue to withhold funds from the town until the required audits were completed. That finally happened at the end of 2024.
The town council said they only learned about this on Tuesday. They were told they have until Friday to respond and 45 days after that before the state can take action against them.
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'She said it doesn't look good that you've been in this situation for three years and we didn't get a response,' Interim Mayor Jessica Finch said.
The former mayor spoke at Tuesday's meeting, putting the blame on a city employee. Watts said it wasn't his fault, because town leaders pushed him out.
'Fact of the matter is, we hired a clerk who was green, she came in, had no training... There was no malicious intent here,' Watts said
On Tuesday, the council agreed to hire an outside group to investigate the issue while they try to get in compliance with the state.
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'My recommendation is to notify the state of Florida that this is what we're doing and hopefully that buys us some time,' Blocker said.
The council also wants to meet every month until this is fixed.
With two town council members and the interim mayor leaving soon, much of that work will fall on the next leaders.
'This is very very very very bad. We have our next meeting, new mayor sitting here, two new council members. They're coming into a mess,' a town resident said at the meeting.
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