Amid federal probe, DETCOG passes annual internal audit - KTRE.com | Lufkin and Nacogdoches, Texas

Amid federal probe, DETCOG passes annual internal audit

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DETCOG passes annual internal audit (Source: KTRE Staff) DETCOG passes annual internal audit (Source: KTRE Staff)
DETCOG passes annual internal audit (Source: KTRE Staff) DETCOG passes annual internal audit (Source: KTRE Staff)
DETCOG passes annual internal audit (Source: KTRE Staff) DETCOG passes annual internal audit (Source: KTRE Staff)
NACOGDOCHES, TX (KTRE) -

A sense of relief was evident by county leaders on Thursday when they heard the Deep East Texas Council of Governments passed its annual audit with the highest grade possible. 

County leaders depend DETCOG for federal and state grant awards, so it's vital they have a spotless financial report. 

"There is no discrepancy found in the funds they audited and so what we got was a clean bill of health," said DETCOG President, Judge Wes Suiter. 

No one wanted the high rating more than DETCOG Executive Director, Walter Diggles. 

DETCOG's annual audit was stopped abruptly in February when FBI agents seized records from DETCOG offices, Diggles church and even his home. 

Diggles is confident the investigation, stemming from a complaint made to the FBI, will find nothing.

"We do know and believe that the DETCOG review is ending and as we stated before there will be no issues or no findings with DETCOG," Diggles said. 

Diggles continues to answer questions concerning a non-profit foundation set up during hurricane Ike. 

Still the DETCOG board saw it as its responsibility to authorize extra payment to the auditing firm to look at programs not routinely scrutinized. 

"Walter works for us. We don't work for Walter, so the board got together to make the decision we're going to have these funds looked at," Suiter said. 

Diggles welcomed the review. 

"I wouldn't wish anybody to go through the kind of scrutiny our agency has gone through here in the past several months. To the interest of the public, I think in the end, the public will have a whole lot more confidence in the agency, in me personally as a leader there for DETCOG," Diggles said. 

That support of confidence came from county leaders who applauded the DETCOG Controller and Diggles following the announcement of the favorable review. 

The DETCOG audit reviewed transactions of multiple grants, how they're awarded, and compliance. 

Similar state and federal audits are conducted. 

DETCOG now waits for a formal letter from the U.S. attorney's office on its investigation.

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