WAXAHACHIE – Ellis County officials clarified last week a rumored $20 million in “missing” funds is actually a $16.3 million budget discrepancy, with no evidence of fraud or misappropriation.
County Judge John Wray confirmed an internal audit by Stacey Parr revealed the county collected $8.3 million in unbudgeted tax revenue since fiscal year 2021, alongside $8 million in unpaid delinquent taxes.
Officials said the collected funds were spent on legitimate county expenses, including building construction, but were not properly recorded in past budgets.
In her internal audit, Parr determined Ellis County had collected approximately $8.3 million in tax revenue was accurate by the county’s tax rate, but was not appropriated in county budgets since fiscal year 2021.
Additionally, Parr found roughly $8-million in delinquent accounts – taxes owed but not paid – during the same timeframe.
This means the budget discrepancy is $16.3 million, not $20 million, and about half of that amount was never in the county’s possession.
“There’s still a lot of questions,” Wray acknowledged. “I know you have questions; I have questions, the commissioners have questions.”
The county has contacted one external audit firm, and Wray expressed his intent to seek proposals from at least two additional firms.
However, he emphasized, “There’s no indication that there was any misappropriation or fraud. It just appears that we collected more money, and spent it on proper government purposes, but it was just not properly budgeted.”
Wray explained the county always budgets money to be spent, but it is never all spent.
The county’s biggest expense is payroll, so a budgeted expense returns to the county’s end-of-year fund balance whenever positions go unfilled for months or years.
Commissioner Randy Stinson, pct. 1, predicted outside auditors would conclude “that the money was spent for county purposes on legitimate costs,” just as the treasury department’s monthly audits indicated.
“It’s hard to hit the middle of a $114-million budget,” Stinson said. He pointed out the county, like a building contractor, needs a budget that includes contingencies for unexpected costs, such as hiring an external auditor.
“I’m going to say the majority of it went to all the buildouts,” Commissioner Kyle Butler, pct. 4, said, referring to the new Ellis County Central building and the Precinct 2 Justice of the Peace building.
“We didn’t borrow any money against [those projects].”
“That’s a logical conclusion,” Wray agreed. “But we need a professional auditor.”
Wray became county judge in May 2025, when former County Judge Todd Little was appointed to lead the North Central Texas Council of Governments.
Little left his position in a “mutually agreed separation… with no finding of misconduct or cause,” according to a statement released last week.
The majority of the fiscal years in question predate Wray’s tenure, but citizens still expressed concern during a discussion on the proposed fiscal year 2027 budget.
The proposal includes adding two new administrative positions: county administrator and budget administrator.
“At this time, the county does not yet appear to have a clear and reliable understanding of its financial position,” said Red Oak resident Don Griffin.
“Most importantly, the troubling and unresolved question of this missing revenue must be addressed before any additional costs are added to the budget.”
Griffin advocated for postponing the decisions on raising the tax rate and adding the two positions until an elected county judge takes office Jan. 1, 2027.