Live Oak council orders RFP for third-party audit after $450,000 loss

Council Member Robinson urged the city to follow through on a prior directive to have an outside firm review finance policies after a reported $450,000 loss. “This started in February when we had $450,000 that was taken from us,” Robinson said, adding investigations have involved state and federal law enforcement.

A staff member told the council, “The audit was a clean audit.” Robinson said the clean audit finding did not end the council’s need for an external review of policies and procedures and recalled that, in a prior meeting, “council member Robinson made a motion that both the city manager and the city attorney find a third party company to review the policy and procedures that are in place, which council member Owens second the motion carried unanimously.”

Robinson urged staff to act and, after staff explained procurement thresholds that could require a formal procurement process, she made a motion that the city issue a request for proposals for an auditing firm to review finance department policies and procedures, including collection and disbursement practices and electronic transfers. A council member seconded the motion. The chair called for a voice vote and announced the motion carried.

The council did not provide a detailed vote tally on the record; the motion was entered and carried by voice vote. The council directed staff to prepare procurement language so qualified auditing firms could bid, recognizing the scope may exceed the city’s informal procurement threshold and require a formal solicitation.

Council members and staff said the goal is to identify gaps in internal controls and recommend changes so a similar loss does not recur. Robinson said she will continue pressing the issue until the council receives an external report.