A bidding process for the forensic audit of Virginia’s local option sales tax fund was approved by the council Tuesday morning at special meeting.
City staff and two councilors will ultimately review bids submitted by July 14 and select a firm by July 28. Once the forensic audit is completed, findings are set to be presented to the full council during a public meeting.
Councilors Annie Bachschneider and Julianne Paulsen volunteered for the committee.
“You always had your thumb on the pulse of the finances, so it’s a good mix to have you and our staff move forward on this,” said Mayor Larry Cuffe Jr.
Clerk Pam LaBine and human resource director Joy Ruedebusch will be the two staff members. Councilors requested the finance department not be involved in reviewing and selecting bids, a notion City Administrator Britt See-Benes nodded along with during the meeting.
“I think for protective purposes, for any administrative and finance staff, they keep an arm’s length distance between them and interview process,” Paulsen said. “Just separation from the selection portion. The rest of it you’ll obviously be hands-on. I hope there is no perception that’s its a negative against our staff. Just a healthy boundary.”
Bachschneider clarified the committee can consult with staff on questions, and the department would be fully involved once the auditing firm is in place.
The bid process and committee were unanimously approved. Councilors Steve Johnson and Justin Skalko were absent.
Paulsen noted she asked the finance team to run a report on the city’s combined professional services budget, and around $61,000 remained.
“We, potentially, could tap into a healthy balance there,” she said.
Virginia decided to seek a forensic audit after discovering $3.7 million of a special-use 1% sales tax increase was transferred out of the account without council approval.
Since the tax proceeds were approved through state law, the city could only spend it in certain ways, and will have to replenish the fund.
Previous annual audits of the city’s finances have identified deficiencies in its oversight, a common mark for smaller cities, but noted more concern in 2024.
Accessing the Virginia City Council
Virginia City Council agenda, minutes and packets can be found on the city’s website. Recordings of the meetings can be found on YouTube.
