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The City of Nederland is continuing to move forward with its forensic audit of the city’s financial records.

At the June 23 city council meeting, it was approved to move forward with the search for a third-party auditing firm, Baker Tilly, to look into the city’s financial records. The city has stated there was no specific inciting incident for the audit to begin, but pointed to concerns about financial management and to ensure transparency for residents.

Three proposals were given by three different firms, with Baker Tilly ultimately being chosen for the audit. The estimated cost of the audit is no more than $78,000. The idea of conducting a focused audit was proposed in an attempt to reduce costs, though the specific items that would be prioritized were not detailed during the meeting. The details of the scope of the audit are still to be determined to see if the cost can be reduced.

The forensic audit will cover the city’s last three fiscal years, from October 1, 2021, to September 30, 2024. This period was selected to include the timeframe when $2.6 million in federal COVID-19 relief funds. 

The audit will also examine the city’s Economic Development Corporation and evaluate compliance with standard operating procedures and laws, including the use of city credit cards. Mayor Jeff Darby emphasized there is no indication of criminal activity, but there are concerns about potential mismanagement or misuse of funds.

The firm is expected to report periodically to city council members during the roughly three-and-a-half to four-month audit, which will likely begin in July and conclude by October or November. Once completed, the full audit report will be made available to the public, either online or at a city council meeting, to ensure transparency. City officials stated they have nothing to hide and want taxpayers to have access to the findings.