According to a report published Friday, the Homewood City Council was found to have significant oversight failures and multiple instances of unauthorized spending. The developments were revealed after an audit was conducted by the state.
The investigation looked into the council’s records from Oct. 2021 to March 2024. Credit card activities from Oct. 1, 2022 – Sept. 30, 2023, were also examined.
After the review, it has come to light that the Homewood City Council approved purchases on city credit cards lacking the necessary documentation.
“As for the city’s credit card expense policies, the audit found purchases were still approved even without proper documentation, travel expenses were not properly documented, and the cost of meals exceeded daily allowances,” read the report. “City employees purchased personal items. The city council did not ensure there was documentation of monthly financial reports, did not ensure policies and procedures were in place to ensure proper documentation was provided to support expenditures, and failed to monitor 38 credit cards.”
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“In Fiscal 2023 there were purchases made totaling $860,732 often made without prior approval or without documented approval. The lack of internal controls included bank statements being sent to an employee’s personal address. There were no procedures to govern the movement of city funds and no proper segregation of duties among employees.”
Data from the report showed that wire transfers of almost $1.8 million took place without the correct documentation. It also referenced large-scale theft by another high-ranking city employee.
“The report noted the criminal case against former Finance Director Robert Burgett surrounding the theft of $947,059. An additional seven transfers were attempted totaling $881,814 but not executed according to auditors.”
The report also indicated that numerous employees had access to the payroll processing system and could make changes themselves.
Several city officials have been ordered to pay back the money that was misspent or taken.
Austen Shipley is the News Director for Yellowhammer News. You can follow him on X @ShipleyAusten
