Melvindale City Councilmember Wheeler Marsee (second from left) asks Mayor Nicole Shkira a series of questions about her request for a $50,000 forensic audit of city finances, with the mayor denying to disclose the reason for her request, which the City Council did not approve during its June 17 meeting.
Shkira refuses to reveal specifically why she wanted the audit
By SUE SUCHYTA
Sunday Times Newspapers
MELVINDALE – Mayor Nicole Shkira asked the City Council to approve $50,000 for a forensic audit of the city’s finances, but refused to reveal her motivation, with the council unanimously denying her request.
The city has an annual audit by Alan C. Young and Associates, P.C., to guarantee regulatory compliance and ensure financial transparency.
Shkira’s request was made during the June 17 council meeting. She said the current auditor selects what it wants to audit, and said it is not “a beginning-to-end audit.”
“And I’m not saying unprofessional, but I did take accounting in college, and I did six different accounting classes, and there are some things that are not adding up,” she said. “And so, nothing against you, Rich, I think you do a great job, but there are a couple of accounts that I think we need to have a forensic audit.”
Rich Ortiz is the city administrator and finance director.
Shkira said she wanted a forensic audit done on the city’s general fund and the police auction. She also wanted an audit of the Downtown Development Authority, but City Attorney Larry Coogan advised her that it was outside of her purview.
Shkira said she had not discussed the forensic audit with Ortiz.
City Councilmember and former Mayor Wheeler Marsee asked if the audit was motivated by any settlements or payoffs made with respect to the Police Department, and Shkira said it was not.
He asked if the audit was related to funds she kept for more than a year for passes to a past Melvindale Days carnival that was due to vendor, to which she said no.
Marsee asked if the proposed audit was related to the use of city facilities, including the fieldhouse, and city personnel, including police officers and Department of Public Works employees, for an event for an out-of-state politician without reimbursement to the city, to which Shkira said the city was reimbursed for the events described, and were by a political action committee.
He asked the mayor if the audit was about any expenditures she made without proper authorization, which she denied.
Marsee asked if the audit was related to any legal expenses incurred by the city as a result of “baseless allegations” made by Shkira against the city, to which she said no.
He then asked her what specifically was the objective and scope of the proposed forensic audit, and asked if the goal was to identify embezzlement, to which she answered in the affirmative without providing any details.
Shkira said that multiple police officers told her that the auto auction was considered “pay day.” She also said that the city’s TR-52 forms, which are abandoned vehicle bills of sale, including those for impounded vehicles, were being shredded when they should have been retained, by law, for seven years.
Shrika said the request to do a forensic audit on the general fund was due to irregularities she uncovered.
“I was shocked to know that we do creative accounting here, and not general standard practices,” she said. “And, so, that is why I would like the forensic audit done on the general fund as well.”
Mayor Pro Tem Joe Jackson said the City Council had voiced concerns regarding the Police Department with respect to the auction of impounded vehicles in the past.
“We pointed out our concerns, we pointed out discrepancies and budgets, and we already pointed those things out, and hired a private investigator, and you fought us all the way,” he said. “All of a sudden you want to pay $50,000 for a forensic audit – exactly what did you find in the general fund that is cause for us to pay $50,000?”
“Things are just not adding up the way they should,” Shkira said.
“You come into a council meeting making accusations, and you want us to say, ‘OK. We’ll spend $50,000 on an audit,” and you have nothing to prove it?” Jackson said.
“Well, that’s what the audit will prove,” Shkira said.
Jackson objected to spending $50,000 for an additional audit when the city is already audited annually.
“It may not be the same, but she’s not giving us any proof to say, ‘Hey. Let’s go for a forensic audit,’” he said. “When you say, ‘OK. We have grounds for a forensic audit,’ you have significant proof that there are some numbers that are not right, we have already identified numbers that aren’t right in the Police Department, so I don’t understand what is it you are talking about.”
Councilmember Dawn Cartrette said the city’s yearly audit is currently under way.
“You were given an email with a questionnaire — everyone in the city received an email — ‘Are there any concerns?’” she said. “‘Do you have an issue with fraud, do you suspect fraud, do you have this or that, you need to find that form and fill it out and you need to supply it to the auditor?’”
Cartrette said Shkira is legally obligated to let the existing auditor know of her specific concerns.
“You haven’t even provided information to the accountant that we are already paying, but you want to pay a second one before this one is even done for this year,” she said.
Marsee said they are legally bound to tell the current auditor anything of which they are aware.
“If we know about something and don’t give it to them, we will be in trouble,” he said.
Marsee said there is a lot of witch-hunting and misinformation going on.
Councilmember Saleim Abuali asked for specific information from Shkira before the council commits to spending $50,000 for a forensic audit.
“If there isn’t, it’s pointless, and just a waste of money,” he said. “If there is a need for an audit, you’ve got to convince me first.”
The council members unanimously voted against spending $50,000 on a forensic audit.
Shkira then asked that the record reflect that she did request that a forensic audit be done and that it was “shot down” by the council.