City Council to Initiate Forensic Audit on ARPA Fund Discrepancies

The City Council of Pryor Creek convened on May 6, 2025, to discuss several key issues, primarily focusing on the need for a forensic audit of city finances. The meeting began with a recommendation for the council to consider hiring an independent audit firm to assess financial discrepancies, particularly related to the American Rescue Plan Act (ARPA) funds.

A council member highlighted the lengthy process of conducting audits, noting that it could take up to a year to finalize reports. The discussion emphasized the importance of clearly defining the scope of the audit before soliciting bids from potential firms. It was suggested that the council should identify the top three audit firms based on their expertise and value, as the costs associated with these services are expected to be significant.

The council revisited a previous audit conducted for a construction project, which involved reaching out to nationwide audit firms. This historical context underscored the necessity of thorough vetting and proposal requests to ensure the selection of qualified auditors. The conversation also touched on the importance of understanding the specific areas to be audited, including how far back the audit should go and what particular financial activities should be scrutinized.

Concerns were raised regarding discrepancies found in ARPA reporting, particularly regarding funds that were misallocated or improperly documented. One council member expressed the need to investigate these issues further, as they could potentially explain a current financial deficit. The intent of the audit was framed not only as a means of identifying past mistakes but also as a way to implement better financial controls moving forward.

The council agreed to compile their thoughts and recommendations regarding the audit and send them to the city manager, who would then prepare a report for further discussion. The meeting concluded with a motion to take no formal action at this time, allowing for a brief recess before continuing with the agenda.

Overall, the meeting underscored the council's commitment to financial accountability and transparency, with plans to engage professional services to ensure proper oversight of city funds. Further discussions and actions regarding the audit are expected in future meetings as the council gathers input from its members.