The Ketchikan Gateway Borough Assembly on Jan. 12 adopted Ordinance 2095 to fund an internal audit of central treasury controls and to accept Federal Transit Administration grant funds for land acquisition near the transit facility.

Charlene Thomas, the borough finance director, told the assembly the ordinance contains two appropriations: $30,000 from the general fund to contract an independent firm to audit processes related to the local education fund and central treasury, and $1,124,800 from an FTA grant to acquire property adjacent to the transit facility on Copper Ridge Road.

Public commenter Bobby McCreery urged the assembly to ensure the audit includes an actuarial review of the school district’s self‑insured health programs and tail liabilities. Thomas said staff had already engaged the broker USI and planned to consider actuarial analyses; HR and the broker will be asked to brief the assembly as part of the audit follow‑up.

Assemblymember Dyle successfully moved that the ordinance’s direction to the borough attorney be revised so the attorney would "research and bring back to the assembly, as soon as practicable, a list detailing the violations of state and federal law, borough code of ordinances, and school board policies related to district finances and budgets for the last seven years." Dyle argued the change recognized the scope of the attorney’s work and the time needed to assemble reliable records. The attorney said he has been working on the research and emphasized obtaining complete source documents and minutes for accuracy.

The ordinance as amended passed by roll call; the clerk recorded a unanimous 7‑0 vote to adopt it. Staff said the audit will include recommendations on internal controls and may look back roughly five years to determine when the central‑treasury issues began and how to strengthen procedures going forward.

The assembly instructed staff to pursue the audit contract and to report findings and any recommended process changes to prevent future reconciliation errors or unauthorized expenditures.