Heather Bell
RADFORD – Bids closed Monday, Jan. 5 for the City of Radford’s request for proposals for firms to complete a forensic audit of the city’s finances.
In December, the city put out notice for proposals from “qualified firms to conduct a forensic audit of its financial records for the past six fiscal years,” which includes fiscal years 2020 through 2025.
“The audit is being requested by the Radford City Council to evaluate the city’s fiscal management, oversight, and adherence to accounting procedures and principles over the stated fiscal years, and to ensure transparency, accountability, and accuracy in the city’s financial operations.”
The next step in the process will be for Radford City Council to choose a firm to complete the forensic audit.
At the most recent city council meeting, Radford City Manager Todd Meredith gave city council members and the public an update on the city’s finances, saying steps have been made to cut costs, including reducing the city work force by 28 full-time positions.
“We are looking at every process in every department,” he said. “Every process for services or products we produce for the city and its residents.
Meredith said the city will also be increasing revenues into the city through the increases in tax and services rates and must look to economic growth to get in a more stable financial position.
“The City of Radford has a lot of resources,” he said. “We need to grow our way out of this as well. Yes, finances are tight. But Radford has a lot of ingredients that are very attractive to industries and businesses and we need to continue to foment economic development.”
“We can’t ignore [the potential for growth] because we are in fiscal stress,” he continued. “Growth is part of the recovery.”
Meredith said proper use of trend analysis to forecast revenues when balancing the city’s budget is essential. He pointed to the previous three years of budgets and the inaccurate revenue projections used as a major reason for the city’s financial distress.
Once a firm is chosen to complete the forensic audit, the “primary objectives of the proposed work are to verify fund balances for each of the city’s operating funds; identify any financial irregularities or discrepancies; evaluate compliance with city financial regulations and policies; assess the adequacy of internal controls and financial management practices; and provide recommendations for improving financial processes and controls.
