Latest news with #ScottCarney
Yahoo
14-06-2025
- Business
- Yahoo
City of Lodi releases new financial report
( — The City of Lodi has released a new third-party report on city finances, following contentious accusations by City Manager Scott Carney that city employees had been misusing public funds. Carney recommended that the report be conducted last September, before being placed on paid leave. Lodi Mayor Cameron Bregman said this is the first of two reports being conducted on city finances. Don't click that link: DMV warns of fake registration discount on social media 'It kind of gave us a gauge of what we're good at and what we need to work on,' Bregman said. The final draft outlines the city's objectives and areas for improvement. One finding suggests that some city employees used Cal-Cards for inappropriate personal purchases. It also found that some employees may have used their personal credit cards for small transactions and then sought reimbursement from the city. Moving forward, the third party recommends implementing a pre-approval process, transaction limits, and regular audits. These findings align with Carney's earlier claims. 'There are things that we're doing right and things we can do better—and that's true for every city government,' Bregman says. 'I'm glad when we can put our problems on paper, because then you can actually fix the problem.' An attorney told FOX40 that the individuals who misused public funds could potentially face charges of embezzlement or misappropriation of public funds. Some residents have praised Carney for speaking out, while others disagreed with how he handled the situation. 'I was absolutely shocked,' said longtime Lodi resident Ron Heberle in an interview with Fox40. 'The comments he made in public were completely inappropriate.' Mayor Bregman said the City Council will hold a vote on June 18 to potentially release the draft version of the findings. Fox40 reached out to the third party that conducted the report and Scott Carney's attorney for comment, but did not receive a response. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
10-06-2025
- Business
- Yahoo
Council to receive results of internal audit
Jun. 10—In early April, Lodi City Manager Scott Carney made public claims about widespread credit card fraud at city hall, and now a recent internal controls review has determined that some misuse has occurred, although to what extent is remains unknown. The City of Lodi contracted Moss Adams, LLP to perform an evaluation of its internal controls framework in September, and the Lodi City Council will receive a report on the document during a special meeting Tuesday afternoon. The report, which was completed in January, focused on assessing internal controls for protecting city assets and resources, as well as timely processing and reporting of financial information. Some of the firm's recommendations include implementing a fraud, waste and abuse hotline; establishing an internal audit function; assessing staffing levels; assessing the necessity of fleet vehicles and dispose of vehicles that are no longer needed; and strengthening credit card use and review process, among others. In its report, Moss Adams found that city employees had been using CAL-Cards for inappropriate personal purchases, which constitutes potential fraud and abuse and demonstrates a lack of a controlled purchasing environment, the firm said. Based on interviews with staff, multiple departments said employees might use their personal credit cards for small transactions rather than the CAL-Card, and they subsequently file for reimbursement through the city Using personal credit cards instead of city credit cards violates use policy, the firm said, results in non-compliance issues and gives the city less oversight over the purchasing process. In addition, using personal credit cards could subject the city to inappropriate or fraudulent purchases, and creates inefficiencies as there is a higher volume of employee reimbursement requests, the firm said. The report suggested the city implement pre-approval processes for certain types of purchases, set transaction limits on CAL-Cards that would restrict the amount that can be spent in a single purchase or within a month, and conduct regular audits of CAL-Card transactions to identify any patterns of misuse. The firm also suggested ensuring goods purchased with CAL-Cards are shipped to a city address to secure purchases, and to review and update its use policy to appropriate use of the cards. To address employees' using personal credit cards for small transactions instead CAL-Cards, it was recommended the city establish clear guidelines that detail when personal cards should not be used and the preferred methods of payment for city-related expenses. In addition, it was recommended the city provide annual training sessions emphasizing the importance of adhering to purchasing policies and the potential issues associated with using personal cards. During an April 1 special meeting, Carney made reference to personnel matters being investigated by city staff while accusing the city clerk and city attorney of editing staff reports without his knowledge or approval in a non-agendized statement. Carney was placed on leave days later. The Brown Act forbids city staff and elected officials from discussing personnel matters that are not placed on an agenda. The council will also be discussing potential litigation from Carney and his attorneys during closed session Tuesday. In its report, Moss Adams also found that the city does not have a mechanism in place for reporting potential fraud, waste or abuse, which creates the risk that potentially suspicious activities may not be investigated or resolved. This may lead to potential misappropriation of assets, fraudulent financial reporting, or other related activities, the firm said. A hotline would offer employees, residents and vendors a confidential avenue to report suspicious activities or concerns in a timely manner, which would allow the city to respond and address the concerns, the firm said. In addition, the firm said a hotline would enhance transparency, encourage accountability and foster a culture of integrity in the city. Moss Adams added the lack of an internal audit function can result in less oversight, which can lead to undetected errors, mismanagement or fraudulent activities within departments. The firm suggested the city outline the scope and objectives of an internal audit function, and create a comprehensive plan that prioritizes high-risk areas and establishes a schedule for regular internal audits of various departments and functions. The city should also identify qualified resources to carry out the internal audit function, either through recruitment or outsourcing to a qualified firm, and regularly assess its effectiveness and make adjustments as necessary to improve its impact on departmental and operations, the firm said. To view the entire document, visit Tuesday's meeting begins at 3:30 p.m. at Carnegie Forum, 315 W. Pine St. It will also be livestreamed at
CBS News
29-05-2025
- Business
- CBS News
Lodi faces budget deficit as city hears from city manager for first time since claims of misuse of funds
LODI - The City of Lodi is facing a $1.6 million deficit in its upcoming budget. Wednesday was day two of budget presentations by each department. CBS Sacramento has learned that during day one of those budget meetings, in closed session, the city council was notified of an April 12 letter sent by City Manager Scott Carney's attorney, claiming he was a whistleblower and that there could be retaliation. Carney is still the city manager but has been on administrative leave since early April after an employee evaluation, though the exact reason for that leave is not known. Carney made claims that city staff were changing staff reports and were misusing taxpayer dollars and city credit cards. We've reached out to Carney's attorney, but haven't heard back. "Hopefully, people realize this investigation is for us all. It's for me, the people of Lodi, the employees of Lodi," said Bregman. Mayor Bregman is closely watching the investigation into Carney's claims and says more will be revealed at future meetings. In the meantime, the city is attempting to balance its budget. "This is our one opportunity every single year to be able to look at our reality. Do we need more funding for our playgrounds? Do we need more funding for our fire or police?" said Lisa Craig-Hensley. Councilmember Craig-Hensley says the council is focused on public safety and keeping both police and fire's budgets intact. Because of the budget deficit, the city is not adding more police positions and instead is looking to fully staff the department to the 80 uniforms it's allotted. For the fire department, however, the proposed budget is giving them no room for new services. Still, if things continue the way they are now, the city could see a more than $4.2 million dollar deficit over a five-year span. "You get through the mid-year adjustment and make some corrections, but over the long term, the next five years, we will have to look at new revenues or budget savings," Craig-Hensley said. One thing the city says could be a good investment is the Grape Bowl. Already, they are seeing a good turnout for the Women's Rugby League, and soon, they say, they could see cricket coming to town.
