Forensic review finds procedural lapses, missing 2022 records but no identified fraud, council told

Jonesboro’s City Council convened a special meeting May 28 to hear Plantaran’s forensic analysis of city finances covering calendar years 2022 through 2024. Kyle Sutton, senior manager with Plantaran, told the council the firm ran ten forensic tests on accounts payable, credit cards and reimbursements and ‘‘did not identify red flags; we did not identify fraud,’’ though it found multiple procedural weaknesses and missing supporting documents that warrant further local follow-up.

The report and presentation laid out the engagement’s scope, methods and timeline and then summarized findings and recommendations. Sutton said some invoices lacked invoice numbers, supporting receipts for many 2022 credit-card charges were unavailable, and several procurement and expense practices did not follow city policy. ‘‘When we identify an anomaly, we pull the supporting documentation,’’ Sutton said; for many 2022 items the firm said receipts were not provided and thus could not be fully validated.

Why it matters: the firm flagged categories and examples that could reflect weak internal controls — not proven wrongdoing. Plantaran recommended periodic, random contract reviews; strict enforcement of the city’s purchasing thresholds (three written quotes for mid-range purchases and city-manager or council approval where required); tighter expense-reimbursement review to avoid duplicate payments; and moving payouts to payroll when appropriate to address payroll-tax reporting.

Key examples and numbers: the firm reported roughly $290,000 in credit-card spend across the three-year scope and said about 11% of expense-reimbursement requests lacked supporting documentation. Plantaran identified approximately $1.1 million in spend across select vendor categories (landscaping, janitorial, legal services, event planning) and highlighted one specific lawn-care invoice that appeared duplicative of an existing contract and lacked documentation showing the required competitive bidding. Sutton also noted a $56,000 rental payment for Lee Street Park in 2024 that Plantaran verified was deposited to city bank accounts. The engagement fee cited in the presentation was $80,520.

On payroll and cash: Sutton told the council the firm found instances of cash payments to employees (for private police services and Christmas cash disbursements to 56 employees) and warned that such payments can create payroll-tax implications if not processed through payroll or otherwise reported on the correct tax forms.

Council and mayor pressed the firm on missing 2022 records and specific vendors. Mayor Sarter and several council members produced a page of 2022 credit-card activity that showed numerous Instacart and DoorDash charges; the mayor asked the record to reflect that the 2022 credit-card statement would be entered as document eight. Resident Dylan Corales told the council the loss of 2022 receipts matters under Georgia’s records-retention schedules and asked, ‘‘Were those records destroyed? and if so, when and under what authority in the city?’’ Plantaran replied it had transaction data but that many 2022 supporting receipts were not available to review.

On grant-funded travel and the OPB (Governor’s Office of Planning and Budget) grant: the report noted travel and conference charges in several cities; Plantaran said grant compliance and a full audit of grant ledgers had been removed from the firm’s scope. Council members and the mayor, by contrast, produced emails showing the OPB approved a budget amendment in 2024 to add National League of Cities training for eight staff; Chief Ko and finance staff said they are reconciling OPB reimbursements and that the grant reimbursement deadline is October 2026. Plantaran said it had not traced every grant ledger entry because grants were taken out of scope.

Public comment and reaction: several residents urged clearer outcomes, records production and unified council action. Business owner Barbara Lane said, ‘‘This is very frustrating to see tax dollars go towards something that is not okay.’’ Resident Britney Waters asked for ‘‘facts, data, measurable outcomes’’ and said residents deserve clarity about how the forensic review advances accountability.

Next steps and council direction: Council members asked Plantaran for certain lists (credit-card holders, authorized bank signers) and for the firm to provide workpaper confirmations where possible; the council requested the clerk and city attorney verify addendum signatures and minutes showing the engagement scope changes. City staff and the police chief said they are working with finance to reconcile the OPB grant expenditures and will pursue documentation to support reimbursements. The meeting concluded with a motion to adjourn; council set follow-up items and directed staff to return with clarified records and any additional reconciliation results.

The Plantaran presentation and council Q&A produced clear recommendations for internal controls and a list of outstanding records for the city to produce; the firm recommended policy and process fixes, while council members and residents pressed for recovery or explanation of missing 2022 supporting documents and for staff to complete the OPB reconciliation before the state reimbursement deadline.