Request for Forensic and Compliance Audit of Smith County Financial Records and Associated Reports

Request for Forensic and Compliance Audit of Smith County Financial Records and Associated Reports

Smith County Council of District Judges
The Honorable, Robert Wilson, Local Administrative District Judge; 321st District Court
The Honorable Kerry L. Russell, Judge of the 7th District Court
The Honorable Austin Reeve Jackson, Judge of the 114th District Court
The Honorable Debby Gunter, Judge of the 241st District Court
The Honorable Taylor Heaton, 475th District Court

Smith County Auditor Karin Smith

Electronic Mail Delivery: Request for Forensic and Compliance Audit of Smith County Financial Records and Associated Reports

November 25, 2025

Honorable District Judges and Auditor Smith:

As previously shared and discussed with County Auditor Smith and some members of the Council of District Judges, our county’s financial and bond project-related records show troubling discrepancies that we have sought to reconcile for almost a year without resolution. Frankly, the deeper we dig, the more alarmed we become.

Discrepancies in fund balances and reports for bond-funded capital projects must be reconciled. In addition, staff actions that have never even been discussed in Commissioners Court – let alone authorized by an official vote of the Commissioners Court – present a troubling pattern.

In one example, we discovered a legal notice for a Request for Proposal (RFP) solicitation related to an Employee Health Care Clinic for a project never discussed or approved by the Commissioners Court. In May 2025, we delivered proof via a copy of the legal notice…

Continued taxpayer-funded salary and benefits payments to a convicted, incarcerated elected official?

Continued taxpayer-funded salary and benefits payments to a convicted, incarcerated elected official?

FOR IMMEDIATE RELEASE | September 4, 2025

CONTACT: JoAnn Fleming

GRASSROOTS AMERICA QUESTIONS CONSTITUTIONALITY OF  CONTINUED TAXPAYER-FUNDED SALARY & BENEFITS  TO A CONVICTED, INCARCERATED SMITH COUNTY CLERK – CALLS ON DISTRICT ATTORNEY JACOB PUTMAN AND THE SMITH COUNTY COMMISSIONERS COURT TO REVIEW THE TEXAS SUPREME COURT’S DEFINITION OF ‘GRATUITOUS’ PAYMENTS.

Tyler, Texas | September 5, 2025 – Today, statewide conservative citizen action committee Grassroots America – We the People (based in Smith County, TX) released its Thursday, September 4th letter to District Attorney Jacob Putman, Smith County Judge Neal Franklin, Commissioners Christina Drewry, John Moore, J. Scott Herod, and Ralph Carraway, Sr. requesting the immediate scheduling an official review of a Texas Supreme Court ruling as it relates to continued taxpayer-funded salary and benefits payments to a convicted, incarcerated elected official. The referenced SCOTX ruling addresses a three-part “test” to determine whether or not such payments are deemed “gratuitous” and therefore prohibited by law.

Article III, section 52(a) of the Texas Constitution prohibits the gratuitous payment of public funds for a private purpose. Grassroots America contends that continued taxpayer-funded salary and benefits for an elected official who is not working due to incarceration strongly appears to violate this provision.

Grassroots America’s Executive Director (and former Smith County Commissioner) JoAnn Fleming said, “The determination of whether or not a public expenditure to a convicted,  incarcerated elected official fits the definition of “gratuitous” belongs to the Smith County Commissioners Court – as the elected governing body of Smith County, Texas. This is not a decision that can be unilaterally made by one member of the Commissioners Court, the County Judge, and/ or the Human Resources Director.”

Fleming continued, “It is our understanding that the convicted Smith County Clerk chose jail time over probation, which removed all possibility of her being present to conduct the official statutory duties of the Office of Smith County Clerk; therefore, the public is clearly denied any “benefit” from her taxpayer-funded compensation.”

Fleming concluded, “The fact that the county clerk’s sentenced jail time is thirty days is immaterial – especially since Smith County taxpayers have assumed the entire cost of the investigation, her prosecution, trial, and jail housing.”

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Political advertisement paid for by Grassroots America We the People, PO Box 130012, Tyler, TX 75713. Copyright © Grassroots America We the People™. All rights reserved.

Continued taxpayer-funded salary and benefits payments to a convicted, incarcerated elected official?

Salary and benefits payments to an incarcerated county elected official?

September 4, 2025

Smith County Commissioners Court
County Judge Neal Franklin
County Commissioner Christina Drewry, Precinct One
County Commissioner John Moore, Precinct Two
County Commissioner J. Scott Herod, Precinct Three
County Commissioner Ralph Caraway, Sr., Precinct Four

District Attorney Jacob Putman

Honorable Members of the Smith County Commissioners Court and Honorable DA Putman:

Grassroots America raises a simple – yet vitally important – legal matter regarding the continuation of salary and benefits payments to an incarcerated county elected official.

Article III, section 52(a) of the Texas Constitution prohibits the gratuitous payment of public funds for a private purpose. The determination of whether or not a public expenditure to an incarcerated county clerk fits the definition of “gratuitous” belongs to the Smith County Commissioners Court – as the elected governing body of Smith County, Texas. This is not a decision that can be unilaterally made by one member of the Commissioners Court, the County Judge, and/ or the Human Resources Director.

Grassroots America contends that continuing to pay a salary to an official who is not working due to incarceration strongly appears to violate this provision of the Texas Constitution.  We rely on the following:

The Texas Supreme Court has enumerated a three-part test by which to determine whether a grant of money or thing of value is prohibited as gratuitous. [Texas Mun. League Intergovernmental Risk Pool v. Texas Workers’ Comp. Comm’n]

This germane enumeration by the Texas Supreme Court is cited in Texas OAG Opinion No. KP-0007 dated March 19, 2015.  KP-0007 quotes that ruling: “(…an entity making a public expenditure must: (1) ensure the expenditure’s ‘predominant purpose is to accomplish a public purpose, not to benefit private parties; (2) retain public control over the funds to ensure that the public purpose is accomplished and to protect the public’s investment; and (3) ensure that the political subdivision receives a return benefit’). Relevant here, the three-part test requires that the expenditure must accomplish a public purpose and be reciprocated with return consideration or a clear public benefit. The determination of whether a particular expenditure satisfies the three-part test is for the political subdivision to make in the first instance, subject to judicial review for abuse of discretion.”

It is our understanding that the convicted Smith County Clerk chose jail time over probation, which removed all possibility of her being present to conduct the official statutory duties of the Office of Smith County Clerk; therefore, the public is clearly denied any “benefit” from her taxpayer-funded compensation.

The fact that her sentenced jail time is thirty days is immaterial – especially since Smith County taxpayers have assumed the cost of her prosecution, trial, and incarceration – in addition to the numerous opportunity costs.

On behalf of the Grassroots America Board of Directors, I assert that it is the legal and administrative duty of the Smith County Commissioners Court to place this matter on the Court’s agenda without delay.

I look forward to your responsive action.

Most sincerely,

JoAnn Fleming

Executive Director
Grassroots America – We the People Political Action Committee™

CC:  Tom Fabry, Chairman, Government Watchdog Committee
Board of Directors, Grassroots America – We the People PAC™
Thomas Wilson, Assistant District Attorney – Civil Division 

Political advertisement paid for by Grassroots America We the People, PO Box 130012, Tyler, TX 75713. Copyright © Grassroots America We the People™. All rights reserved.

Grassroots America: “Shockingly Unprofessional, Unacceptable, Embarrassing, and Disrespectful to Taxpayers”

Grassroots America: “Shockingly Unprofessional, Unacceptable, Embarrassing, and Disrespectful to Taxpayers”

FOR IMMEDIATE RELEASE | July 30, 2025

Contacts:  
Tom Fabry, Board Member; Chair, Government Watchdog Committee, tcfabry@yahoo.com,  817-721-6701
JoAnn Fleming, Executive Director; self-term-limited Smith County Commissioner

Grassroots America declares the Smith County
Commissioners Court Budget Presentation —
“Shockingly unprofessional, unacceptable, embarrassing,
and disrespectful to Smith County taxpayers
and the officials who are trying hard to serve them.”

Executive Director JoAnn Fleming: “In 33 years, I have never witnessed such a shocking failure as this year’s budget process in Smith County.  County Judge Neal Franklin and the Commissioners have never had one public discussion to set the spending boundaries for the 2026 budget nor have they ever attempted to cast a unified vision for what this budget should achieve for the taxpayers.  It is inconceivable that the County does not have a complete and vetted preliminary budget at this late date!  Allegedly, taxpayers and the officials who are trying to serve them will not see the “real” budget and tax rates until mid-August, when it is virtually impossible to make changes.  The Commissioners should demand better.  The taxpayers, department heads, and county employees deserve better.  The buck stops with the elected Commissioners Court – not a hired budget officer.

“Road Bond projects approved by voters in 2019 and 2021 remain incomplete, over budget, and unresolved – months after we raised the issue in a February Commissioners Court meeting.  Although the county engineer provided two updates, the Commissioners Court has never publicly discussed or VOTED on how they intend to address the failure to make good on promises made to voters about improving their roads.  Even worse is the fact that the County desperately needs another independent review of county roads to determine budget allocations necessary to address road repairs and reconstructions. The last study was completed ten years ago! There is a huge cost for this failure – deteriorating roads and deteriorating public trust!”

Government Watchdog Chair Tom Fabry: “The enormous amount of goodwill built by former County Judge Nathaniel Moran (now US Congressman Moran) has been squandered. His legacy of transparency, due diligence, thoroughness, and purposeful community dialogue has been completely abandoned.  The higher standards of public integrity set by former County Judge Moran were incredibly valuable and should have continued.

“Repeatedly, Grassroots America’s Board has met with Judge Franklin to first privately discuss the Commissioners Court’s ongoing deficiencies in transparency, lack of due diligence, lack of cohesive planning, and shortcuts that put the best interest of taxpayers at great risk. Our private requests for course corrections have been ignored.  Our public requests for course corrections made in Commissioners Court meetings have been ignored.

“Our experienced and reasonable recommendations to Judge Franklin and the Commissioners Court to complete a rigorous review of county operations to discover opportunities to lower operating costs through increased efficiencies have been ignored.  Cost savings could free up tax dollars to redirect into areas where increased funding can be justified – without raising taxes. When running for office, Judge Franklin touted his experience with Lean Six Sigma methods learned as City of Tyler Fire Chief and promised he would use that expertise to benefit taxpayers. Unfortunately, this has never materialized.  Taxpayers deserve better and Grassroots America is determined to use every lawful means to seek accountability for Smith County taxpayers.” 

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Who’s Accountable?

Who’s Accountable?

March 14, 2025

After Smith County Commissioners Court Responds
to Our Questions on Road Bond Projects,
Reasonable, Unanswered Questions Remain!

On February 24, 2025, Grassroots America, called for a full public accounting of 2017 and 2021 Smith County Road Bond Projects, saying “Our audit revealed that the Smith County Road Plan promised to the taxpayers to be completed by 2026 is dramatically behind schedule and over budget. We call on the Smith County Commissioners Court to adopt a “business urgency” approach, work with the County Engineer to assemble all the facts and hold a public meeting in the very near future to inform citizens.”

On March 11, 2025, County Judge Neal Franklin’s Commissioners Court agenda included a non-action presentation from the County Auditor and County Engineer. Substantive questions remain unanswered.

  • When will the promised projects be completed?
  • What is the estimated cost of the remaining projects?
  • Will unsold bonds cover the cost, excess cash reserves be used, or is a tax increase planned? What are the anticipated budgetary and taxpayer impacts?
  • What percentage of the completed roads show signs of degradation? How much is due to poor drainage, poor workmanship, or damage caused by humans, animals, or weather?
  • Is a one-year contractor’s bond adequate to protect taxpayers from substandard work?
  • Why was the approximately $40 million in interest expense (a substantial cost to taxpayers) never acknowledged in the presentation?
  • When, how and who will plan and update the Smith County Transportation Infrastructure Plan?

Continued taxpayer-funded salary and benefits payments to a convicted, incarcerated elected official?

Smith County Commissioners Court Responds

Contacts: Tom Fabry, Board Member, Local Watchdog Committee Chair | (817) 721-6701
JoAnn Fleming, Executive Director, former County Commissioner | (903) 360-2858

March 14, 2025

RE: 3.11.2025 SMITH COUNTY COMMISSIONERS COURT PRESENTATION ROAD BOND PROJECTS

UNANSWERED QUESTIONS ABOUT SMITH COUNTY ROAD BOND PROJECTS

SMITH COUNTY JUDGE AND COMMISSIONERS:

On February 24, 2025, Grassroots America, called for a full public accounting of Smith County Road Bond Projects, saying “After receiving numerous complaints from Smith County citizens, we conducted an audit of Smith County Road Bond project documents. Our audit revealed that the Smith County Road Plan promised to the taxpayers is dramatically behind schedule and over budget. We call on the Smith County Commissioners Court to adopt a “business urgency” approach, work with the County Engineer to assemble all the facts and hold a public meeting in the very near future to inform citizens.”

At Commissioners Court on March 11, 2025, the County Engineer and Auditor responded with a presentation of the 2017 and 2021 Road Bond financials and the infrastructure work done with those bond funds. The forty-five-page presentation provided a detailed overview of projects in “closed out” Phase1 and current status of Phase 2 road projects. Likewise, the financial overview was thorough. It is important to note that with one exception (#5 below), the summary GAWTP presented to the Court on February 24th detailed the same financial and completion data as was presented to the court on March 11th, confirming both budget overages and schedule slippage. Specifically:

  • The Phase 1 bond ($39.5 million) promised 376.5 miles of improved roads.

    • Only 204.5 miles were completed with bond funds
    • $3.5 Million of supplemental funding had to be applied to complete the additional 175.2 miles of basic maintenance.
  • The Phase 2 Bond ($45 million) promised 282.2 miles of improved roads.
    • Just 99.1 miles have been completed to date
    • Just 38.4 miles are contracted or planned to date
    • Nearly 145 additional miles have not yet been contracted.
    • Supplemental funding of $10 million has already been appropriated

What was missing from the March 11th presentation were several critical points GAWTP had previously requested to be discussed. The failure to address these has clouded the goal of total transparency on the financials and deliverables.

  1. The presentation stated a commitment to “complete the Smith County Road Bond Program.” Specific completion dates were not presented nor even discussed. The public has no benchmarks against which progress can be measured or against the FY26 completion, which was promised to the voters as the expected deliverable.
  2. The financial report documented the current funding balance and additional $20 million of bond sale authorizations. However, there was no estimate of the funding required to complete those improvements due to inflation or other factors. Transparency requires both notification and quantification of risk.
  3. Degradation has been reported on projects already completed. There was no discussion on this potentially significant financial risk to the taxpayers. There was no discussion regarding a need to perhaps extend the County’s current practice of a one-year contractor’s bond to two years. Again, this is an important topic that should have been discussed to protect taxpayer investments. Transparency requires a full discussion of project quality and what can be done to protect taxpayers.
  4. The response to the above three issues will define the taxpayer exposure to the potential Interest & Sinking Fund (I&S) tax rate increase in the FY 2026 budget. Transparency requires disclosure of I&S tax rate impact as soon as possible so that the Commissioners Court can get to work cutting costs in other areas of the County Budget to ease the burden on taxpayers.
  5. The Auditor reported that $2.2 million in Interest Income has been earned from the bond fund investments. This was new, and good, news. However, what was missing from the report was the approximately $40 million in interest expense, an incremental cost to the taxpayers. Full transparency requires both good and bad news.
  6. No official has been charged with updating the strategically important Transportation Infrastructure Plan. That is critically important to prevent future crises that may require additional bond propositions. Full transparency in problem solving requires both short- and long-term strategic plans. (Should the Commissioners Court utilize a community task force approach, we strongly recommend that contractors who intend to bid on future projects or who have financial interests in those bidding companies are disqualified from serving on the task force.)

Unfortunately, the Court’s agenda packet did not include the slide deck. No opportunity was thus available to analyze or reinforce these concerns under “public comments.” Public comments can often stimulate the Court’s deeper discussions or an exploration of new concerns.

Moreover, this was styled on the agenda as a “presentation” agenda item, not a “discuss, consider and take any necessary action” item. There will be no opportunity for public comments or formal debate for SIX MONTHS until the first semi-annual update. Road conditions affect virtually everyone, every day. Road conditions are important not just to residents and businesses but to those providing public services – schools, emergency services, and law enforcement.

The taxpaying citizens of Smith County want, need, and deserve better from the Smith County Commissioners Court. A schedule of pending road projects must indicate to taxpayers WHEN and HOW the specific roads they travel every day will be fixed. Transparency depends upon our remaining six questions being fully discussed in public and answered.

We strongly urge members of the Smith County Commissioners Court to require full transparency of themselves as the administrators of Smith County.

JoAnn Fleming

JoAnn Fleming, Executive Director
Acting President

Thomas Fabry

Thomas Fabry, Board Member
Chairman, Government Watchdog Committee

Political advertisement paid for by Grassroots America We the People™, PO Box 130012, Tyler, TX 75713.
Copyright © Grassroots America We the People™. All rights reserved.