Homewood mayor reads state audit review, says former finance director pleaded guilty to wire fraud

Mayor Alex Wyatt read a city statement into the record at the Jan. 13, 2025 Homewood City Council meeting summarizing a limited special review by the Alabama Department of Examiners of Public Accountants and the city's response to discovered financial irregularities.

"The city of Homewood has reviewed the limited special review by the Alabama Department of Examiners of Public Accountants of the city's financial system concerning both the use of city credit cards and a separate fraudulent misappropriation of funds by a former city employee," Wyatt read. He said the city first discovered suspicious movements of funds after the former finance director retired in March 2024, and that the city reported findings to local, state and federal authorities.

Wyatt said the individual has pleaded guilty to three federal charges of wire fraud and is awaiting sentencing. The mayor told the council that insurance has covered $500,000 of more than $947,000 that the city says was transferred to a personal account, and that the city is pursuing recovery of additional monies.

The mayor outlined policy changes already adopted and under way: the council in November 2023 reduced the number of city credit cards in use, limited cards to preauthorized official expenditures with no cash advances or alcohol purchases, required itemized receipts and capped daily meal reimbursements at $75, and established monthly audits by the finance department. He also said the state auditors had referred disputed credit card charges to the Alabama Attorney General for collection.

Wyatt said the city has moved to strengthen professional management: voters approved a new form of government creating a full-time city manager position, to assume chief executive duties in November 2025, and the city has begun a search for an interim manager who could start in March. The mayor said steps taken and the auditors' recommendations will help the city "continue our efforts to make sure our finance department works more securely so that expenditures of public funds are properly tracked in strict adherence to sound business and audit standards."