Performance audit finds governance and finance weaknesses; auditors report about $1.4 million in potential fraudulent card charges

Auditors told the Seat Pleasant City Council that a performance audit of city revenues and expenditures from July 2019 through June 2023 identified 13 findings across governance, ethics, policies and financial controls and that the city reported potential fraudulent credit‑card transactions totaling approximately $1,400,000.

The audit presentation said the review covered “all the revenues and expenditures of the city for the period of July 2019 through June of 2023,” and that the team “had 13 audit findings and related recommendations,” auditor Lisa Newman said during the council meeting. The auditors recommended the council restrict itself to policy‑making per the charter, update policies and procedures, improve procurement and documentation practices, and strengthen cash and investment controls.

Why it matters: The report identifies systemic weaknesses across multiple administrative functions — governance, procurement, hiring, travel, revenue recording and cash management — and documents delayed annual audits and large uninsured cash balances, items that affect transparency and financial risk for the city.

Audit highlights and council response

- Governance and roles: Auditors told the council the charter assigns policy duties to the council and day‑to‑day operations to the city manager; the auditors recommended clearer internal routing for employee complaints and that the council “ensure it’s restricting its activities to policy setting as authorized by the charter,” Newman said. Interim City Manager Demetrius Harris told the council staff and leadership were already implementing many changes and meeting regularly to catch up on controls.

- Policies and procedures: The audit found many city policies and procedure manuals in draft form or out of date, including the accounting manual last…