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Amarillo Ledger

Storyline · 18 events · Feb 21, 2023 – Oct 2026

Amarillo's move toward a third-party forensic audit of City financial records (2022-2026)

The City's annual audited financial reports for fiscal years 2022-2024 each restated beginning balances, and the City moved to new financial software in January 2025. The fiscal 2025 annual audit, by a new audit firm, was issued June 4, 2026; in February 2026 the council had tabled a $30.31 million street certificate of obligation while that audit was under way. When the report was filed on June 23, 2026, staff identified about $43 million in the community investment program fund for allocation and public commenters asked for a forensic audit. On July 14 the council directed the audit committee to vet third-party firms; the City issued a request for quotations on August 11 as staff described software-report errors requiring an ACFR footnote correction. In September the committee split the work into water/sewer and community-improvement components, with a recommendation expected in October 2026; a 'Forensic Audit Update' is on the October 13 council agenda.

A storyline groups dated events in order. It is a chronology, not an argument; it does not say why anything happened. All storylines

Where the story starts depends on the framing

  1. · Context

    FY2022 annual audit issued with an unmodified opinion and a lease-accounting restatement

    The independent auditor's report on the City's financial statements for the year ended September 30, 2022 is dated February 21, 2023 and states an unmodified opinion. Beginning net position was restated to apply the new GASB 87 lease standard retroactively.[1]

    • ✓ Verified

      The independent auditor's report on the City's fiscal 2022 financial statements, dated February 21, 2023, states that the statements present fairly, in all material respects, the City's financial position (an unmodified opinion). It notes the City adopted GASB 87 (leases) in 2022 and that the opinion is not modified with respect to that matter.[1]

    • ✓ Verified

      The fiscal 2022 ACFR restated governmental-activities net position at September 30, 2021 by -$590,549 to apply GASB 87 retroactively.[1]

      Restatement
      -$590,549

  2. · Context

    FY2023 annual audit issued; business-type net position restated for a depreciation correction

    The auditor's report on the fiscal 2023 statements is dated February 27, 2024. Note 1 records a $3,383,736 accumulated-depreciation correction to business-type net position after the City's fixed-asset subledger over-depreciated assets, alongside a GASB 96 subscription-IT restatement.[2]

    • ✓ Verified

      The fiscal 2023 ACFR (auditor's report dated February 27, 2024) records an accumulated-depreciation correction of $3,383,736 to business-type net position at September 30, 2022, stating that the City's fixed-asset subledger had over-depreciated fixed assets; it also records a GASB 96 (subscription IT arrangements) restatement to governmental activities.[2]

      Depreciation correction
      $3,383,736

  3. · Origin

    City switches to new financial software

    According to City staff as reported in August 2026, the City switched to new financial software in January 2025. Staff later said the software ran a report differently than staff were used to, causing cash-flow figures that needed correction.[3]

    • ✓ Verified

      On August 15, 2022 the City issued $7,345,000 in Tax Notes, Series 2022B, for acquiring enterprise resource planning software and constructing and improving fleet fuel islands, maturing through 2029.[4]

      Amount
      $7,345,000
    • ✓ Verified

      City staff: City staff said the City switched to new financial software in January 2025 and that the software ran a report differently than staff were used to, which caused cash-flow figures that needed correcting.[3]

  4. · Precursor

    FY2024 annual audit issued; prior period adjustment for completed CIP projects not depreciated

    CMMS CPAs & Advisors PLLC's report on the fiscal 2024 statements, dated March 25, 2025, states an unmodified opinion. Note 1 records prior period adjustments of $3,252,499 (governmental) and $227,482 (business-type) because certain construction-in-progress projects had been placed in service without depreciation being started, plus $359,828 for GASB 96 and GASB 87 items.[5]

    CMMS CPAs & Advisors PLLC

    • ✓ Verified

      The fiscal 2024 ACFR states that during 2024 it was determined that certain construction-in-progress (CIP) projects had been placed in service but depreciation had not been started, resulting in prior period adjustments of $3,252,499 for governmental activities and $227,482 for business-type activities; a separate $359,828 adjustment related to GASB 96 ($52,071) and GASB 87 ($307,756) in the Information Services internal service fund.[5]

      Governmental adjustment
      $3,252,499
      Business type adjustment
      $227,482
      Gasb96 87 adjustment
      $359,828
    • ✓ Verified

      The fiscal 2024 independent auditor's report, on CMMS CPAs & Advisors PLLC letterhead and dated March 25, 2025, states an unmodified opinion.[5]

  5. · Precursor

    Council awards the City's auditing services agreement to CliftonLarsonAllen, 5-0

    On June 24, 2025 the City Council voted 5-0 to award an auditing services agreement to CliftonLarsonAllen for fiscal years 2025/26 through 2029/30, with one optional one-year extension. The agenda packet lists annual amounts from $455,505 to $483,470, identifies the solicitation as RFQ 311-25 (eight submissions) and names CMMS CPAs & Advisors as the City's then-current provider.[6][7]

    Cole StanleyTim ReidDon TippsDavid PrescottLes SimpsonCliftonLarsonAllen LLPCMMS CPAs & Advisors PLLC

    • ✓ Verified

      On June 24, 2025 the City Council voted 5-0 to award the agreement for auditing services to CliftonLarsonAllen, on a motion by Councilmember Don Tipps seconded by Councilmember David Prescott. Voting yes were Cole Stanley, Tim Reid, Don Tipps, David Prescott and Les Simpson. The agenda caption gives the initial term as fiscal years 2025/26 through 2029/30, with one additional one-year option to extend. [6]

    • ✓ Verified

      The award lists annual amounts of $455,505 (2025/26), $462,265 (2026/27), $469,285 (2027/28), $476,325 (2028/29) and $483,470 (2029/30), funded from multiple funds and budgeted. The five annual amounts add to $2,346,850; the bid tabulation attached in the agenda packet shows a "Total Amount Bid" of $2,346,870. [6][7]

      Fy2025 26
      $455,505
      Fy2026 27
      $462,265
      Fy2027 28
      $469,285
      Fy2028 29
      $476,325
      Fy2029 30
      $483,470
    • ✓ Verified

      The June 24, 2025 transmittal memo states that the City issued a request for qualifications and received 8 submissions, that a committee of the Chief Financial Officer, the Finance Director and the Deputy Finance Director evaluated them and recommended Clifton Larson Allen, and that the City's current provider was CMMS CPAs & Advisors. It gives the purchasing reference as "RFQ 311-25." [7]

  6. · Related development

    $30.31 million street certificate of obligation withdrawn without a vote while the annual audit is under way

    At its February 10, 2026 meeting the council approved about $11 million in debt for a fire truck and water and sewer projects. A certificate of obligation of up to $30,310,000 for streets and related infrastructure was withdrawn; news reports called it tabled, and the minutes record that the item "was not taken up," with no vote. Officials said the City was undergoing an audit and wanted to see whether it had money on hand to use instead of borrowing.[8][9][10]

    Cole StanleyDon Tipps

    • ✓ Verified

      The City's notice of intention set the February 10, 2026 meeting to consider Series 2026A certificates of obligation not to exceed $30,310,000 for park and recreation facilities and street improvements, with estimated combined principal and interest of $43,883,993.[9]

      Not to exceed
      $30,310,000
      Est principal and interest
      $43,883,993
    • ✓ Verified

      The council tabled the roughly $30 million certificate of obligation; officials said the City was undergoing an audit and wanted to see whether it had money on hand to use instead of borrowing, and that the money was not needed until the summer budget process. The same day the council approved about $5 million for a fire truck and about $6 million for water and sewer projects.[10]

    • ✓ Verified

      Councilmember Don Tipps: Councilmember Don Tipps compared a certificate of obligation to a credit card, saying the City was locking in costs because it lacked the cash to pay outright.[10]

  7. · Context

    Council approves the street certificates of obligation

    NewsChannel 10 reported on March 13, 2026 that the council approved more than $30 million in certificates of obligation for street construction and maintenance, including $12 million for the 2026 summer street maintenance program and $16 million for Osage Street from 34th to 58th Street.[11]

    Cole Stanley

    • ✓ Verified

      NewsChannel 10 reported on March 13, 2026 that the council approved more than $30 million in certificates of obligation for streets: $12 million for the 2026 summer street maintenance program and $16 million for Osage Street from 34th to 58th Street. The report does not mention the audit or give a vote count.[11]

      Summer maintenance
      $12,000,000
      Osage street
      $16,000,000

  8. · Context

    Council tables filing of the fiscal 2025 annual financial report, 5-0

    On March 24, 2026 the council voted 5-0 to table the item to consider filing the City's Annual Comprehensive Financial Report for the fiscal year ended September 30, 2025. The Amarillo Tribune reported that the CliftonLarsonAllen auditor said the audit was undergoing an independent second review and that a draft would be presented at a special meeting that Friday.[12][13]

    Cole StanleyTim ReidDon TippsDavid PrescottLes SimpsonCliftonLarsonAllen LLP

    • ✓ Verified

      On March 24, 2026 the council voted 5-0 to table item 6.2, "Consider Filing of City of Amarillo Annual Comprehensive Financial Report" for the fiscal year ended September 30, 2025, on a motion by Councilmember Tipps seconded by Councilmember Reid. Voting yes were Cole Stanley, Tim Reid, Don Tipps, David Prescott and Les Simpson. [12]

    • ✓ Verified

      The Amarillo Tribune reported that the CliftonLarsonAllen auditor, speaking by Zoom on March 24, 2026, said the audit was undergoing an independent second review and that a draft report would be ready to present at a special meeting that Friday, and that Mayor Cole Stanley said CLA would return on April 14 for a potentially final presentation. [13]

  9. · Related development

    At a special meeting, council files the draft fiscal 2025 annual financial report, 3-0

    On March 27, 2026, at a special meeting, the three council members present voted 3-0 to file the City's fiscal 2025 Annual Comprehensive Financial Report; Councilmembers Prescott and Simpson were absent for the vote. The Amarillo Tribune reported that the 180-day filing deadline fell that weekend, that council members had received the draft the night before, and that the auditor said the draft could change before the final report.[14][15]

    Cole StanleyTim ReidDon TippsLes SimpsonGrayson PathCliftonLarsonAllen LLP

    • ✓ Verified

      At a March 27, 2026 special meeting the council voted 3-0 "to file the City of Amarillo Annual Comprehensive Financial Report," on a motion by Councilmember Tipps seconded by Councilmember Reid. Voting yes were Cole Stanley, Tim Reid and Don Tipps; David Prescott and Les Simpson were recorded absent. The minutes record that the interim chief financial officer and a CliftonLarsonAllen representative presented the item. [14]

    • ✓ Verified

      Mayor Cole Stanley (as reported by the Amarillo Tribune): The Amarillo Tribune reported that the Texas Local Government Code requires the report to be filed within 180 days after the end of the fiscal year, that this was the first year CLA conducted the City's report, and that council members said they received the draft the night before the meeting. Mayor Stanley said that ideally the council would have received it several weeks earlier, and that the finance department's transition to new accounting software had not been seamless and had contributed to the delay. [15]

    • ✓ Verified

      CliftonLarsonAllen audit partner (as reported by the Amarillo Tribune): The CLA audit partner said the draft report may differ from the final report: "Those changes could come as a result of city council questions. As we look into this further, and we may have to regroup something, or the amounts could change." Asked by Councilmember Les Simpson whether the firm found any indication of fraud, misuse or irregularities, he said, "No fraud or irregularities that we became aware of," adding that this did not mean undetected ones could not exist. [15]

    • ✓ Verified

      City Manager Grayson Path (as reported by the Amarillo Tribune): The auditor said City staff were already working to give the council more timely and accurate reconciliation of capital assets and construction-in-process accounts. City Manager Grayson Path said a CIP committee had been formed to work through capital projects, "identifying ones that have been completed, and close out and bring back to you all funds, working backwards as best we can." [15]

    • ✓ Verified

      The report filed on March 27, 2026 was described by the auditor as a draft; the independent auditors' report in the final fiscal 2025 report posted on the City's website is dated June 4, 2026. [15][16][4]

    • ⚠ Sources differ

      Amarillo Tribune reports give the fiscal 2025 report's filing deadline differently: a March 27, 2026 report says the deadline was the Sunday after the Friday, March 27 special meeting (the 180th day after September 30, 2025 is March 29, 2026); a June 10, 2026 report says the deadline to finalize the audit was March 27.

      Reported value 1[15]

      Value
      2026-03-29

      Filing deadline, "Sunday," 180 days after the fiscal year ended September 30, 2025

      Reported value 2[16]

      Value
      2026-03-27

      Deadline to finalize the audit

  10. · Precursor

    FY2025 annual audit issued by a new audit firm with an unmodified opinion

    CliftonLarsonAllen LLP's report on the fiscal 2025 statements is dated June 4, 2026 and states an unmodified opinion; it notes the fiscal 2024 statements were audited by other auditors. Beginning balances were restated for reporting-entity changes (the Amarillo Convention and Visitors Bureau no longer reported as a component unit; the COVID-19 relief fund reported as non-major).[4]

    CliftonLarsonAllen LLP

    • ✓ Verified

      CliftonLarsonAllen LLP's independent auditors' report on the fiscal 2025 statements, dated June 4, 2026, states an unmodified opinion and notes that the fiscal 2024 statements were audited by other auditors whose report was dated March 25, 2025.[4]

    • ✓ Verified

      The auditor's report dates for the City's last four ACFRs were February 21, 2023 (FY2022), February 27, 2024 (FY2023), March 25, 2025 (FY2024) and June 4, 2026 (FY2025).[1][2][5][4]

    • ✓ Verified

      Note 28 of the fiscal 2025 ACFR restates beginning balances because the Amarillo Convention and Visitors Bureau Inc. is no longer part of the City's reporting entity (component-unit net position reduced by $3,079,487) and the COVID-19 relief fund ($1,026,645) moved from a major to a non-major fund.[4]

      Cvb component unit removed
      $3,079,487
      Covid fund reclassified
      $1,026,645
    • ✓ Verified

      The City check register records 10 payments totaling $239,997 to CMMS CPAs & Advisors PLLC between 2024-09-12 and 2025-11-06, and 10 payments totaling $280,008.78 to CliftonLarsonAllen LLP between 2025-09-11 and 2026-05-18. The register begins in July 2022 and does not tie payments to a specific audit or engagement.[17]

      Cmms total
      $239,997
      Cmms payments
      10
      Cla total
      $280,009
      Cla payments
      10

      See the payments in the check register →

    • ✓ Verified

      The same portal lists an earlier solicitation, 'RFQ-311-25 ML,' 'City Financial Audit Services,' that closed May 15, 2025. The June 24, 2025 council agenda packet gives 'RFQ 311-25' as the purchasing reference for the auditing services agreement awarded to CliftonLarsonAllen that day, and states that the City received 8 submissions and that its then-current provider was CMMS CPAs & Advisors.[18][7][6]

  11. · Related development

    Council tables acceptance of the fiscal 2025 annual financial report to June 23, 5-0

    On June 9, 2026 a CliftonLarsonAllen audit partner presented the fiscal 2025 report. Councilmember Reid moved to accept it; before a second was offered, the mayor asked him to move to table instead, and the council voted 5-0 to table acceptance until June 23 so members could fully review the audit as filed with the City Secretary.[19][16]

    Cole StanleyTim ReidDavid PrescottLes SimpsonCliftonLarsonAllen LLP

    • ✓ Verified

      On June 9, 2026 the mayor took item 7.5, acceptance of the fiscal 2025 report, out of order. The minutes record that Councilmember Reid moved to accept the report and that, before a second was offered, Mayor Stanley asked him to move to table acceptance until the council could fully review the audit as filed with the City Secretary. The motion by Reid, seconded by Councilmember Prescott, to table until June 23 passed 5-0, with Cole Stanley, Tim Reid, Don Tipps, David Prescott and Les Simpson voting yes. [19]

    • ✓ Verified

      The Amarillo Tribune reported that the auditor said a draft was filed on the deadline; that Councilmember Les Simpson expressed concern the delay in finalizing the audit could cause issues with the Texas Attorney General's office, which had been reviewing cities' compliance with SB 1851; and that under that law a city found to have failed to have or timely file an audit may be prohibited from adopting a tax rate above the no-new-revenue rate. The Tribune reported that the council tabled acceptance because not every member had reviewed the report. [16]

    • ✓ Verified

      The Tribune reported the audit showed an overall positive budget variance of nearly $1.5 million, with four categories over budget: fire protection by $2.2 million, police protection by $6.6 million, streets, traffic and engineering by almost $4.5 million, and transit by a little over $760,000. [16]

  12. · Trigger

    FY2025 ACFR filed; public commenters ask for a forensic audit

    Auditors from CliftonLarsonAllen presented the fiscal 2025 report, noting nine findings regarding federal and state grants, one described as significant. A first vote to accept the report tied; the council then unanimously filed it with the City Secretary. Staff had identified about $43 million in the community investment program fund available for allocation; public commenters asked for a forensic audit, and council members expressed support but wanted cost information.[20][21]

    Cole StanleyTim ReidLes SimpsonAndrew FreemanCliftonLarsonAllen LLP

    • ✓ Verified

      CliftonLarsonAllen auditor: At the June 23, 2026 meeting, a CliftonLarsonAllen auditor pointed out nine findings regarding federal and state grants, one of which he described as significant, related to an airport grant: the auditors could not identify which capital assets were federally funded.[20][22]

      Grant findings
      9
      Significant findings
      1
    • ✓ Verified

      The first vote to accept the fiscal 2025 ACFR was tied, with Mayor Cole Stanley and Councilmember Tim Reid voting no; Reid said his concern was that the report did not have findings. The City Attorney said state law only requires the report be filed with the City Secretary, and a motion by Stanley to file the final draft passed unanimously. The council had tabled the report at its previous meeting because not all members had reviewed it.[20][21]

    • ✓ Verified

      After a presentation by Deputy City Manager Andrew Freeman on how community investment program projects are closed out (159 projects closed out in this audit), staff identified around $43 million in the community investment program fund that the council could allocate in the upcoming budget, pending the closure process and reserve recalculation.[20]

      Cip available
      $43,000,000
      Projects closed
      159
    • ✓ Verified

      The Amarillo Tribune reported that the $43 million figure, together with the City having a new Chief Financial Officer, prompted a few public commenters to request a forensic audit; Mayor Stanley asked whether the council was interested, and council members all expressed support but wanted to know the cost first.[20]

    • ✓ Verified

      The June 23, 2026 minutes record two votes on item 6.2. A motion by Councilmember Simpson, seconded by Councilmember Prescott, "to accept the City of Amarillo Annual Comprehensive Financial Report as presented" failed 2-2 (yes: David Prescott, Les Simpson; no: Cole Stanley, Tim Reid; absent: Don Tipps). A motion by Mayor Stanley, seconded by Councilmember Reid, "to file the audit from CLA in its final draft with the City Secretary's Office" then passed 4-0 (Stanley, Reid, Prescott, Simpson; Tipps absent). [21]

  13. · Context

    Fiscal 2025 single audit filed with nine federal-program findings

    The Federal Audit Clearinghouse accepted the City's fiscal 2025 single audit, performed by CliftonLarsonAllen, on June 30, 2026. It reports $43,197,490 in federal expenditures and nine findings on federal programs: four in the Housing Choice Voucher program, three in the Airport Improvement Program, one in the SAFER fire-staffing grant and one in Community Development Block Grants. None reports questioned costs or is marked as a repeat finding. The City was not designated a low-risk auditee for fiscal 2025, after being so designated for fiscal 2024.[22][23]

    CliftonLarsonAllen LLP

    • ✓ Verified

      The FAC record for the fiscal 2025 single audit lists nine findings (2025-002 through 2025-010): Housing Choice Voucher cluster - late HUD 50058 submissions (3 of 40 tested), undocumented SEMAP certification review, one housing assistance payment before a rent-reasonableness determination, and no documented independent review of the utility allowance schedule; Airport Improvement Program - fixed-asset records that do not identify federally funded assets (2025-006), FAA Form 5100-127 line items that did not agree to the general ledger, and no written airport revenue-use policy; SAFER - no documented independent review of a performance report; CDBG - first-tier subawards over $30,000 not reported under FFATA (2025-010). Each lists questioned costs: none, and repeat finding: no.[22]

      Findings
      9
      Federal expenditures
      $43,197,490
    • ⚠ Sources differ

      Sources classify the severity of findings 2025-006 (airport property records) and 2025-010 (CDBG subaward reporting) differently.

      Reported value 1[22]

      Classification
      material weakness

      The finding texts filed with the FAC describe 2025-006 as 'Material Weakness in Internal Control over Compliance and Material Noncompliance' and 2025-010 as 'Material Weakness in Internal Control over Compliance and Noncompliance'; the other seven are described as significant deficiencies.

      Reported value 2[22]

      Classification
      significant deficiency

      The FAC's structured findings table flags all nine findings as significant deficiencies and none as material weaknesses.

    • ✓ Verified

      Finding 2025-006 states that the City's fixed asset ledger 'does not identify or distinguish assets acquired with federal award funds from assets acquired with other funding sources,' because the fixed asset system 'was not configured to capture funding source and federal participation information.' This corresponds to the airport-grant finding the CliftonLarsonAllen auditor described to the council on June 23, 2026 as significant.[22][20]

    • ✓ Verified

      The FAC records show the City as a low-risk auditee for fiscal 2024 and not a low-risk auditee for fiscal 2025. The fiscal 2024 single audit (CMMS CPAs & Advisors) had one finding, 2024-002, on recovery-fund reporting.[23][22]

    • ✓ Verified

      None of the nine fiscal 2025 findings reports questioned costs, and finding 2025-008 states that 'no specific instances of revenue diversion were identified.'[22]

  14. · Starting point

    Council discusses a forensic audit and directs the audit committee to vet third-party firms

    The council discussed the scope of a possible forensic audit covering capital improvement projects, water and sewer, and ARPA funds. The audit committee said it would vet and recommend a third-party firm to the full council before any forensic audit proceeds; staff were directed to call a special meeting in August. Some council members said they had not seen issues with funds.[24][25]

    Cole StanleyLes Simpson

    • ✓ Verified

      On July 14, 2026 the council discussed a possible forensic audit including capital improvement projects, sewer and water, and ARPA funds. NewsChannel 10 reported that for months council members and citizens had raised questions about past financial records, including where funds came from and where they went.[24]

    • ✓ Verified

      The audit committee said it would vet and recommend a third-party firm to bring before the full council before any forensic audit moves forward, and the council directed staff to call a special meeting in August. No vote count was reported.[24]

    • ✓ Verified

      Mayor Cole Stanley: Mayor Cole Stanley described a forensic audit as 'a formalized audit that digs down deep without some handcuffs' and said the firm should be able to review 'everything years past.'[24]

    • ✓ Verified

      Councilmember Les Simpson: Councilmember Les Simpson said, 'To me, it doesn't matter if it costs $1 or $200,000. If it's worth doing, it's worth doing. If it's not, it's not.' This was a hypothetical range, not a cost estimate; no cost estimate for the forensic audit was reported.[24]

    • ✓ Verified

      Some council members said they had not heard or seen any issues with the funds and did not wish to spend money on an audit they considered unnecessary; supporters said it was needed to rebuild trust and ensure financial transparency.[24]

    • ✓ Verified

      No source reviewed reports an allegation by the City or its auditors of missing funds or wrongdoing. The fiscal 2022, 2024 and 2025 auditor's reports state unmodified opinions (the opinion page of the scanned fiscal 2023 report is not legible), and the City has not publicly stated that the earlier restatements or the software change led to the forensic audit; reported reasons were questions about past financial records, the $43 million CIP figure and the new CFO. The fiscal 2025 single audit's nine federal-program findings report no questioned costs.[24][20][4][5][1][22]

    • ✓ Verified

      The City's boards page describes the Council Audit Committee as two councilmembers, the City Manager, the Chief Financial Officer and a member of the AEDC, Amarillo Hospital District, Amarillo-Potter Events Venue District or Amarillo Local Government Corporation board, serving as an advisory committee to the City Council regarding financial information, financial reports and communications with the City's independent auditors. It lists the enacting authority as '04-05-16-2; rev. 12-14-21-1', five members and three-year terms.[26]

    • ✓ Verified

      The July 14, 2026 minutes list discussion items 4.1, 'Discussion of roles and responsibilities of Council Audit Committee,' and 4.2, 'Discussion of definition for potential forensic audit scope to include CIP projects, sewer and water, and American Rescue Plan Act (ARPA) monies'; each records that Mayor Stanley introduced and presented the item. No vote is recorded on either item.[25]

  15. · Related development

    City issues a forensic-audit request for quotations; staff describe software-report errors and an ACFR footnote correction

    As budget workshops began, staff said reports from the new financial software caused cash-flow figures needing correction and that staff were working with the audit firm to correct an ACFR footnote. The Tribune reported on August 13 that the City issued a request for quotations for a forensic audit on August 11, and that the ACFR shows $288 million in committed funds while the actual figure is closer to $207 million. The City's procurement portal lists it as RFQ 317-26 MRH, closing September 10, 2026.[3][27][18]

    Cole Stanley

    • ✓ Verified

      On August 11, 2026 staff said some available funds appeared as negative in the proposed budget because of the software report issue and the need to match figures in the annual audit; the City Secretary said staff were working with the audit firm to correct a footnote, after which cash flows would be updated. Staff said the issue affects projected year-end balances, not the proposed budget.[3]

    • ⚠ Sources differ

      The Amarillo Tribune reported on August 13, 2026 that the ACFR used an incorrect number based on the software-generated reports, which the independent auditing firm was correcting: the ACFR shows $288 million in committed funds, while the actual number is closer to $207 million.[27]

      Reported value 1[27]

      Committed funds
      $288,000,000

      Committed funds as shown in the FY2025 ACFR, per the Tribune.

      Reported value 2[27]

      Committed funds
      $207,000,000

      'Closer to' figure given as the actual number, per the Tribune (approximate).

    • ✓ Verified

      The Amarillo Tribune reported that the City issued a request for quotations for a forensic audit on Tuesday, August 11, 2026, and that Mayor Cole Stanley said a forensic audit could review the CIP fund commitments to verify the actual number.[27]

    • ✓ Verified

      The City's Bonfire procurement portal lists solicitation 'RFQ 317-26 MRH,' 'Forensic Audit and Related Professional Services,' among past opportunities, with a closing date of September 10, 2026. The listing does not show the number of responses or an award.[18]

  16. · Related development

    Audit committee splits the forensic audit into water/sewer and community-improvement components

    The audit committee met September 28 and decided to split the audit into the water and sewer fund and community improvement projects, possibly hiring a firm for each. Scoring of firms was not complete; the mayor said the committee would pick three firms to interview and return in October with a recommended scope and firm for each component.[28]

    Cole StanleyDavid PrescottAndrew FreemanLes Simpson

    • ✓ Verified

      Mayor Cole Stanley: Mayor Stanley said the audit committee includes himself, Councilmember David Prescott, a former assistant city manager, Acting City Manager Andrew Freeman and Chief Financial Officer Lola Ogunremi.[28]

    • ✓ Verified

      The audit committee met Monday, September 28, 2026 and decided to split the audit into two components, the water and sewer fund and community improvement projects, and is considering hiring two firms, one per component, to save time.[28]

    • ✓ Verified

      Mayor Cole Stanley: Stanley said scoring of the audit firms was not complete, that the committee would meet to review scores, highlight the top three firms and schedule interviews, and that it 'should come back in October with a recommendation for scope of work and audit firms for each one of those two items.'[28]

    • ✓ Verified

      Councilmember Les Simpson; Mayor Cole Stanley: At the September 29, 2026 council meeting, Councilmember Les Simpson said institutional knowledge needs to be verified and 'we have to be willing to challenge assumptions even when something has been done the same way for years'; he said that when the mayor began questioning the budget numbers he had defended staff. Stanley said he hoped he could rely on Simpson's and the council's support during the upcoming forensic audit.[28]

  17. Mayor reports 13 firms answered the forensic audit RFQ; audit committee interviewing the top five

    Under discussion item 4.2, Mayor Cole Stanley told council that 13 firms responded to the audit committee's request for qualifications, the committee scored them and took the top five, interviewed the top-ranked firm that morning, and planned to interview two more. He said the committee hoped to recommend one or two firms on October 27, 2026, and said he knew of nothing that constituted a criminal or fraud charge. Council members discussed a March 31 deadline and late-October or early- November timing. No action was taken (discussion item).[29][30][31]

    • ✓ Verified

      The October 13, 2026 agenda lists '4.2. Forensic Audit Update' under discussion items. No consent or non-consent item on that agenda awards a forensic-audit contract.[29]

    • ✓ Verified

      Mayor Cole Stanley (as reported by KAMR): KAMR's October 13, 2026 meeting preview said the council would receive an update on the forensic audit and reported that in September Mayor Cole Stanley said officials were still reviewing firms to perform it, with the intention of having it and the City's annual audit completed in March 2027. [30]

    • ✓ Verified

      The 157-page October 13, 2026 agenda packet contains no memo, presentation or other backup material for item 4.2, "Forensic Audit Update"; the item appears only in the agenda listing. [32]

    • ✓ Verified

      At the October 13, 2026 meeting the mayor reported that 13 firms responded to the audit committee's RFQ, the top five by score were short-listed, the top-ranked firm was interviewed that morning and two more interviews were planned, with a hoped-for committee recommendation of one or two firms on October 27, 2026. No action was taken. [29][30][31]

  18. Scheduled

    Audit committee expected to recommend forensic-audit scope and firms

    Mayor Stanley said the audit committee should return to the council in October 2026 with a recommended scope of work and audit firm for each of the two components.[28][29]

    Cole Stanley

    • Pending

      Mayor Cole Stanley: Stanley said, 'The audit committee should come back in October with a recommendation for scope of work and audit firms.' Whether ARPA funds will be in scope had not been reported as of October 10, 2026. The October 13, 2026 council agenda lists a 'Forensic Audit Update' discussion item.[28][29]

    • Pending

      As of October 14, 2026, no audit-committee recommendation, firm name, scope or cost for the forensic audit had been published in the council agendas or minutes on the City's CivicClerk portal; the next scheduled item is the October 13 'Forensic Audit Update.'[29][32]

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