The Loveland City Council meeting on December 3, 2024, focused on the approval of a significant engagement with Ernst and Young for a forensic audit. The council discussed the scope of this agreement and the implications of the audit process, particularly in relation to the Local Urban Renewal Authority (LURA).

During the meeting, concerns were raised by Councillor Foley regarding the timing of the approval, as the engagement had not yet been fully finalized by LURA. However, it was clarified that the city council retains the authority to adjust the appropriation amount during the second reading, allowing for flexibility based on LURA's final engagement costs.

The forensic audit is intended to provide a higher level of scrutiny compared to standard financial audits, focusing on potential misrepresentation of financial statements. This type of audit involves a comprehensive review of documents rather than sampling, which increases both its complexity and cost. The council emphasized that this audit would also assess compliance with the Municipal Finance Act (MFA), ensuring that all financial practices align with established regulations.

In response to questions about the necessity of the forensic audit, it was noted that while independent audits are required under the MFA, this particular audit serves a different purpose, aiming to uncover any discrepancies that may not have been identified in previous audits.

The meeting concluded with a consensus to proceed with the engagement, allowing for further discussions and adjustments as needed based on LURA's input. The council's decision underscores its commitment to financial transparency and accountability within the city's operations.