Ball Ground Recycling Auditor Asks For More Money — Again

The Newnan-based accounting firm performing the forensic audit on a failed Cherokee County business venture is once again asking for more money.

McClendon & Associates petitioned the Cherokee County government to once again raise its cap to perform the forensic audit on Ball Ground Recycling in an amount not to exceed $400,000. 

Cherokee County Commissioners on Tuesday approved amending the contract to reflect the new amount, which is an increase from the amount of $319,000 that was set back in April. 

It was the second increase the commission has done. 

The commission in April voted to increase the contract amount by over $100,000. 

That increase in April also allowed lead accountant Rhonda McClendon to hire an attorney to ensure she's on the right track in her investigation in an amount not to exceed $50,000.

Commissioners also set Sept. 12 as the deadline in which the audit will be complete and turned over to Blue Ridge Judicial Circuit District Attorney Shannon Wallace.

District 1 County Commissioner Harry Johnston asked if Wallace was in support of the firm's latest request.

County Commission Chairman Buzz Ahrens noted Wallace was in support of the increase. 

The county's original contract with the law firm capped the cost at $75,000, and authorized County Manager Jerry Cooper to approve an additional $25,000 if it was needed. 

The forensic audit was approved late last year at the request of a Cherokee County grand jury that launched an investigation into the controversial deal. 

The commission in 2006 created the Resource Recovery Development Authority and backed up to $18 million in bonds, which were used to relocate the former Cherokee Recycling to land along Highway 5 just south of Ball Ground.

The agreement stipulated Ball Ground Recycling operator Jimmy Bobo was to make payments of the bond into an escrow account, but the county learned in late 2011 Bobo hadn't been making the payments.

That forced the county to pick up the tab, which it will still be responsible for if it does not find a new operator for the site.

Ball Ground Recycling in late May filed for Chapter 11 bankruptcy, and the company was subsequently forced to remove itself from the property.

The company was eventually dismissed from bankruptcy court, giving the county the green light to go after the company and Bobo to recover money from the failed deal. 

Along with the failed recycling venture, the audit will review the financial statements and dealings of the RRDA and the Cherokee County government related to the case.