State audit reveals years of financial oversight failures at Pikeville non-profit

PIKEVILLE, Tenn. — We’re hearing from the Tennessee Comptroller’s Office after it uncovered years of financial oversight failures at a Pikeville non-profit.

The report concerns Skills Training And Rehabilitation Services Incorporated, also know as STARS Inc.

The non-profit provides services to people with intellectual and physical disabilities.

The Tennessee Comptroller’s Office says their investigation uncovered fabricated invoices, unauthorized bonuses, and years of financial oversight failures at skills training and rehabilitation services.

John Dunn, the Treasury Director of Communications for the Tennessee Comptroller, says…

“As we began looking at this nonprofit, what we found were really some questionable decisions that were being made by the executive director of that organization.”

According to TN Path finder, STARS services are meant to serve one goal:

“A comprehensive developmental center for individuals with intellectual disabilities and/or mental illness.”

But according to Tennessee Comptroller’s report, investigators found the director issued more than $300,000 in bonuses to herself and other employees without a documented board approval.

The report also determined the executive director submitted fabricated invoices that resulted in thousands of dollars in payments to herself.

“She confirmed that she used that money to not only pay that $10,000 payment to her former spouse that she was court ordered to pay, but also use some of the money to satisfy other creditors as well,” Dunn says.

The report goes on to say investigators found STARS paid at least $33,000 for cellular devices and services without board approval.

Including “a second cell phone in addition to her primary work-assigned cell phone, two smartwatches, and one tablet for the executive director.”

We reached out to the non-profit asking about their thoughts on this report. They tell us…

“Skills Training And Rehabilitation Services is in the process of reviewing the Comptrollers report and will provide more information at a later date.”

Dunn says it’s important to hold the non-profit accountable…

“There’s public dollars that are a part of this organization, and it’s certainly important that the organization have good policies and procedures, good internal controls to make sure that they’re taking care of their money in the right way.”

The Tennessee Comptroller says it is now up to the District Attorney if they want to file charges.

We reached out to their office, but have yet to hear back.