NAVASOTA, Texas (KRHD) — The city of Navasota is delinquent on their annual audit. New City Manager, Robert Hemminger addressed city council at their July 28 meeting.
- The audit was due on March 31, but the current audit firm has not completed and turned in the final reports.
- Hemminger tells 15 ABC that the city will be requesting bids and will select a new audit firm for next year.
- The audit firm has committed to being at the next city council meeting on August 25 and will turn over the final reports.
- Hemminger says as long as all reports are completed and turned in before the end of August there will be no negative consequences.
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Navasota resident Taylor Perry is concerned about the city's checks and balances, due diligence, and follow-up regarding third-party agreements.
“What is going on inside this building when it comes to checks and balances, due diligence, and then following up when it comes to like these third-party agreements that we have with others,” Perry said.
At the July 28 city council meeting, new City Manager Robert Hemminger announced that the audit for fiscal year 2024 has not been completed. The report was due March 31.
Local resident Burt Bearden expressed concern about the delay. “You know, without a proper audit on file, it could endanger our bond rating,” Bearden said.
This concern is shared by many Navasota neighbors. 15 ABC spoke with Dr. Alexander Brown, a professor of economics at Texas A&M University, to explain what a bond rating is. “It's about the reliability or probability someone will pay back the money you give them,” Dr. Brown said. He noted the negative impact can be expensive, adding, “The direct negative effect would be they have to pay a higher rate of interest on the money they are borrowing.”
Hemminger confirmed that the city will have a new audit firm next year. “We put them on notice that we were gonna go ahead and do an RFP solicit for a new bidder,” Hemminger said.
Neighbors believe the city staff should be held accountable. “You know this was a dropped ball by city staff,” Bearden said.
Perry added, “I would like to see an internal process to actually proactively look for bids and also keeping the employees on a timeline and holding them accountable to their mistakes as well.”
Perry stresses the need for more oversight: “I would like to see something being put in place to prevent us from having these failures.”
Hemminger noted the audit firm has committed to attending the next Navasota City Council meeting and will turn over the final reports. Hemminger said if the city submits all paperwork before the end of August, there will not be any negative consequences.
