Milton Council Pauses On Rising Audit Costs, Debate Over Independence

Milton, FL (NewsRadio 92.3) -- Milton's City Council is holding off on approving additional costs tied to this year's financial audit, after questions were raised about the scope of work being done by the city's outside accounting firm and whether the arrangement could compromise the auditor's independence.

The city's auditing firm, Warren Averett, notified Milton in a July 7th letter that it was requesting authorization for services beyond its original contract, tied to ongoing reconciliation work. Mayor Heather Lindsay told council the city originally budgeted 45,000 dollars for this year's audit, but that figure could climb significantly higher.

"I'm sure y'all all noted, we expected to pay 45,000 dollars for this audit," Lindsay said. "It's possible we'll end up paying 100,000 dollars. I mean, it's gonna be extensive."

During Tuesday's discussion, council members raised concerns about whether the firm's expanded role could put its independence at risk, since auditors are generally expected to review completed work rather than assist in producing it. City Manager Ed Spears said the extra hours largely stem from a "pre-audit" process, in which Warren Averett reviews the city's reconciliations on a rolling, monthly basis rather than all at once, as it typically would.

Councilman Gavin Hawthorne said the lack of a clear cost estimate made him uncomfortable moving forward without more information. "When it states the total estimated cost for the remaining out of scope of work is not yet available, that throws a flag for me," Hawthorne said. "I don't wanna ever sign up for anything that we have no idea what the cost is gonna be."

The item was pulled from Tuesday's agenda and will be taken up again at a special council meeting scheduled for July 23rd, where a Warren Averett representative is expected to answer questions directly.

Some residents used Thursday's public comment period to call for a broader, independent forensic audit. Resident Jerry Cooey told council the city is facing a financial crisis that only an outside, fully independent review can resolve. "It is a crisis," Cooey said. "You're gonna have to do a forensic audit and let the chips fall where they may."

Spears said the city is already developing a process to identify qualified forensic audit firms, with a list of proposals potentially ready for council by its August meeting.