ALCOA, TN — The City of Alcoa issued its official public announcement regarding the purchasing irregularities and internal theft investigation on Friday, May 29, 2026. An update to the City’s Purchasing Card Policy was issued May 18, 2026
The news release was issued by Public Information Officer Emily Crateau. It confirmed that an internal purchasing review uncovered irregularities, leading to the immediate termination of the employee involved and the prompt referral of the matter to the Tennessee Bureau of Investigation (TBI), the Tennessee Comptroller of the Treasury, and the 5th Judicial District Attorney General’s Office.
Purchasing Cards (PCard) Holder– SHANE CREASY
When municipal employees are handed a company credit card, they are also handed direct access to taxpayer funds. To safeguard those dollars, the City of Alcoa relies on a strict Purchase Card User Agreement—a binding contract that outlines the financial responsibilities, authorized uses, and severe penalties for misusing public money.
A review of an executed agreement signed by city employee Shane Creasy on December 12, 2002, sheds light on the internal controls Alcoa uses to prevent fraud and ensure fiscal accountability at the individual level.
The Signatories
The document in question was acknowledged and signed by employee Shane Creasy. The agreement also features a signature line for a Department Head, establishing a chain of command and oversight for the issuance of the card, though the supervising official’s name on this specific document is partially illegible.
Zero Tolerance for Personal Use
At the core of the eight-point agreement is a strict prohibition against using the card for anything other than legitimate city business.
Employees must acknowledge that the card remains the property of the City of Alcoa and that they are making financial commitments on behalf of the city. To maximize taxpayer value, the agreement explicitly reminds cardholders that all Tennessee sales are tax-exempt.
Swift and Severe Consequences
The agreement does not mince words when it comes to violations. If a Department Head, Purchasing Agent, Director of Finance, or the City Manager determines that the card has been misused, the penalties are swift:
- 48-Hour Reimbursement: The employee has just two business days from notification to personally reimburse the city for all unauthorized charges and any associated collection fees.
- Termination and Prosecution: Failure to pay back the funds within that window results in termination. Furthermore, the city reserves the right to withhold the owed amount from the employee’s final paycheck. Fraudulent use bypasses warnings entirely, triggering immediate termination and potential criminal prosecution.
Cardholder Responsibility
Beyond making authorized purchases, the burden of administrative bookkeeping falls squarely on the employee. The agreement mandates that cardholders must actively safeguard the physical card—even recommending they write “Check ID” on the signature line.
If erroneous charges, returns, or adjustments appear on the statement, it is the employee’s direct responsibility to work with their Department Coordinator to dispute the items and ensure the city’s account is properly credited.
Through these legally binding terms, the City of Alcoa establishes a clear baseline: municipal purchasing cards are a privilege of the job, but the responsibility for every dime spent rests directly on the employee holding the plastic.
On May 18, 2026 the City of Alcoa released an updated and revised Purchasing Card (PCard) Program Manual, outlining a rigorous framework designed to modernize and secure how city employees handle low-dollar transactions. The program aims to move away from traditional, often slower purchasing processes to provide a more efficient and effective method for acquiring small-dollar items needed for city operations.
Purpose and Efficiency
The PCard system functions as a city-issued credit card intended primarily for transactions under $2,500. By utilizing a web-based management system—currently Tyler Munis—the city can better manage these small purchases while allowing employees to acquire commodities for business use via telephone, internet, or in person.
While the program promotes efficiency, it does not bypass standard city requirements; items that require quotes or bids under the general Purchasing Manual must still meet those competitive standards even when using a PCard.
Strict Controls and Spending Limits
To prevent misuse, the city has implemented several layers of technical and procedural controls:
- Spending Parameters: Each card is assigned specific limits for both individual transactions and total monthly spending, which are adjusted based on an employee’s demonstrated need.
- Blocked Vendors: The city automatically blocks transactions at the point of sale for certain categories, including travel, gaming fees, and inappropriate entertainment.
- Prohibited Purchases: Use of the card for personal items, alcohol, or any substance violating law or policy is strictly forbidden. Furthermore, employees are prohibited from “splitting” a single purchase into multiple transactions to circumvent spending limits.
- Tax Exemption: As a governmental entity, the City of Alcoa is tax-exempt. Cardholders are responsible for ensuring merchants do not charge sales tax, and must seek a credit if tax is mistakenly applied.
The Approval and Oversight Process
The manual details a multi-tiered reconciliation process to ensure every cent is accounted for. The Cardholder is responsible for maintaining all receipts and invoices, which must be legibly signed with a detailed explanation of the purchase.
Once receipts are uploaded into the accounting system, a Departmental Coordinator reviews the transactions to ensure they are legitimate and correctly documented. The Department Head holds ultimate responsibility for overseen activity and must submit final approvals no later than the 20th of each month. Finally, Accounts Payable reconciles the city’s overall bill from the card provider against the internal electronic files.
Security and Audits
Security remains a high priority, with cards featuring “CHECK CITY I.D.” on the signature line to ensure only the authorized employee uses the card. To maintain program integrity, the Purchasing Card Administrator and Department Coordinators perform periodic audits of cardholder compliance.
The policy also covers vehicle-specific WEX Fuel Cards, which are restricted solely to fuel purchases and require drivers to enter exact vehicle mileage and a secure ID code at the pump to prevent fraud.
Failure to follow these guidelines can result in the permanent revocation of purchasing privileges and disciplinary action up to termination.