Council reviews financial audit process following discrepancies in payee checks

The Richmond City Organizational Development Standing Committee meeting held on May 5-6, 2025, focused on critical issues regarding financial oversight and accountability within the city's finance department. A significant portion of the discussion revolved around recent problems with check processing, specifically concerning incorrect payee information.

Committee members expressed disappointment over the delays in resolving these issues, emphasizing the need for timely communication with the public. Councilmember Aberbacher raised concerns about the quality assurance (QA) processes currently in place, questioning whether the amounts on the checks had been verified. The finance department confirmed that while the payee information was incorrect, the mathematical calculations were accurate.

To address these concerns, the finance department has initiated a review process involving the auditor's office to ensure thorough oversight of the check processing. The committee noted that previous QA measures were insufficient, as they only occurred at the end of the process. Moving forward, the finance department plans to implement more robust quality control (QC) measures, including multiple independent reviews at various stages of the process.

The discussion also touched on personnel changes within the finance department, with members noting that key individuals who had been instrumental in identifying and addressing these issues had recently left their positions. This raised questions about the organizational culture and whether those advocating for improvements were being supported or discouraged.

The meeting concluded with a commitment to enhance financial oversight and accountability, aiming to prevent similar issues in the future. The committee's focus on these matters underscores the city's dedication to improving its financial processes and maintaining public trust.