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

February 28, 2026 - 02:10

A recent investigation by the Tennessee Comptroller’s Office has revealed significant and prolonged financial oversight failures at a non-profit organization in Pikeville. The audit, which focused on the local Senior Citizens Assistance Network (SCAN), details a troubling pattern of mismanagement spanning several years.

According to the findings, the organization failed to maintain proper accounting records and internal controls. Investigators discovered that former staff members issued checks to themselves and made personal purchases using the non-profit’s debit card, resulting in thousands of dollars in questionable and unauthorized expenditures. Furthermore, the audit found that required documentation for disbursements was consistently missing, and the board of directors did not provide adequate oversight of the executive director’s financial activities.

The report criticizes the board for not ensuring annual financial reports were submitted to the state as legally required and for failing to conduct regular reviews of bank statements and canceled checks. This lack of oversight created an environment where funds intended for community senior services were vulnerable to misuse.

State officials have emphasized the critical need for non-profit boards to implement strong financial policies, segregate accounting duties, and actively review all transactions. The findings have been forwarded to the local district attorney’s office for further consideration. The non-profit’s board has stated it is working to implement all recommended corrective actions to ensure accountability and prevent future issues.