- The City of Hoover has published the questions submitted to Kroll regarding the forensic audit.
- City Press Release: LINK
- Questions & Responses: LINK
Missing Records and deleted files.
The document does not fully support the claim of transparency because:
- There were thousands of deleted files.
- There were missing records, both electronic and physical.
- Certain financial reports were unavailable.
The city claims no malfeasance was found.
The claim that no malfeasance was found is accurate but:
- There were deficiencies that could allow the opportunity for fraud.
- A $36 million overstatement in the General Fund balance was found.
- There were unbalanced transactions and unreconciled accounts.
Lack of transparency involving the city’s law firm & hiring Kroll.
There is a lack of transparency on hiring Wallace Jordan Ratliff & Brandt, LLC:
- The City’s law firm retained Kroll on behalf of the City.
- Kroll’s invoices were paid by the city’s law firm, not the city.
- The City Council authorized Wallace Jordan to retain Kroll.
Conclusion
The forensic audit did not uncover direct evidence of malfeasance, but it revealed serious financial and transparency issues within the City of Hoover. The presence of missing records, deleted files, and unavailable financial reports raises concerns about the city’s commitment to full transparency. Additionally, the hiring process for the forensic audit firm lacked clarity, with the law firm retaining Kroll rather than the city itself. While no fraud was explicitly identified, the report highlighted significant deficiencies, including a $36 million overstatement in the General Fund and unbalanced financial records, which created conditions where fraud could have occurred. These findings suggest that deeper scrutiny and stronger financial oversight is necessary to ensure accountability and public trust.