AGENDA TITLE:
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Receive Presentation and Report from Hoslett Forensics on the Forensic Accounting Audit of the City's Utility Deposit Account, Procurement Card Charges, and Amazon Account Purchases (IS - BUD)
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MEETING DATE:
April 15, 2026
PREPARED BY:
Jennelle Baker, Budget Manager
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RECOMMENDED ACTION:
Receive presentation and report from Hoslett Forensics on the forensic accounting audit of the City's Utility Customer Deposit account, procurement card (CAL-Card) charges, and Amazon account purchases.
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BACKGROUND INFORMATION:
On September 3, 2025, the City Council approved a contract with Hoslett Forensics to perform accounting audit services. This contract was initiated following a July 16, 2025, closed session update from Financial Assessor Kevin Harper, who had been retained by outside legal counsel to investigate allegations of financial mismanagement.
During the open session report out from closed session on July 16, 2025, Mr. Harper indicated that no fraudulent activity was identified. However, he recommended that the Utility Deposit and Holding Account undergo further analysis and reconciliation. In addition, he advised a more detailed review of CAL-Card and Amazon Business account transactions to ensure compliance with established City policies.
Pursuant to Council direction, Hoslett Forensics was engaged to conduct a comprehensive review of the Utility Deposit and Holding Account, as well as CAL-Card and Amazon Business transactions. Hoslett Forensics was granted full access to the City's financial system (Tyler Munis), the U.S. Bank CAL-Card portal, and the Amazon Business account. As part of the audit, Mr. Hoslett spent two weeks onsite in the Finance Department, meeting with Revenue, Accounting, and Budget Managers, along with other Finance staff.
Hoslett Forensics has completed its review and prepared a report (Attachment 1) and presentation (Attachment 2) for City Council consideration. Key highlight...
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