Audit says misclassified funds, missed invoices added to Hernando’s utility fund deficit
Hernando Mayor Chip Johnson outlined the issues behind a shortfall in the city’s utility fund. (Patrick Lantrip/The Daily Memphian file)
After city officials discovered a projected $1.9 million deficit in Hernando’s Fiscal Year 2026 utility fund earlier this year, they learned Tuesday night, Aug. 18, what caused the shortfall.
The deficit, initially projected to be even greater at $2.6 million, was first acknowledged Feb. 3 at a Board of Mayor and Aldermen meeting. Mayor Chip Johnson took responsibility and outlined three issues that led to it.
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City of Hernando utility fund Chip Johnson audit BDO USA Subscriber OnlyThank you for reading The Daily Memphian. Your support is critical.
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Aarron Fleming
Once an intern, he never left, joining the staff full-time in 2022 as an education reporter. He moved to public safety in 2023, where he covered some of the city’s biggest court cases, including the criminal trials for those charged in the deaths of Tyré Nichols and rapper Young Dolph. He also chronicled the Shelby County Jail and the deaths that have occurred at the facility.
He now provides suburban coverage, focusing on DeSoto County and the surrounding municipalities.
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