Lawrence councilor calls for forensic audit of city finances
LAWRENCE, Ind. (MIRROR INDY) — Calling it a necessary step to ensure the financial health of the city, a Lawrence councilor says he wants a forensic audit of the city’s finances.
Zach Cramer said the unusual measure is needed amid growing uncertainty around how city funds are being spent.
“This request is not made lightly, but rather out of a deep responsibility to our residents who deserve clear answers about how their tax dollars are being managed,” Cramer said during a Dec. 18 council meeting.
None of the other councilors weighed in on Cramer’s proposal during the meeting, but Cramer later told Mirror Indy that he has the support of “several” of the city’s nine councilors, all of whom are Democrats.
When asked about Cramer’s comments, Mayor Deb Whitfield’s administration promised to cooperate with a forensic audit.
“If the council wishes to spend additional taxpayer money on an unnecessary forensic audit, that is its choice as the city’s fiscal authority and the Whitfield administration will cooperate,” a city spokesperson told Mirror Indy.
The council in October hired Indianapolis-based financial advisor Stone Municipal Group to take a closer look at city finances.
But the request from Cramer goes a step further. Unlike routine financial audits, forensic audits are typically carried out to uncover potentially fraudulent or illegal activity.
“But their purpose goes beyond that,” Cramer told Mirror Indy. “In this case, the main goal is to conduct a comprehensive and detailed analysis of the city’s financial operations. This audit will not only address any concerns about potential misconduct but, more importantly, provide an accurate and thorough understanding of the current status of the city’s finances.”
City officials deny impropriety
In response to councilors’ inquiries about city finances, Greg Goodnight, the city’s chief of staff, provided an update to the council at its Dec. 18 meeting.
Goodnight said the city is under contract with accounting firm Baker Tilly to reconcile bank accounts and to provide financial advice due to the controller’s office being understaffed after the deputy controller went on leave earlier this year
“We’ve kind of done an all-hands-on-deck,” Goodnight said. “We’ve hired Baker Tilly to come in and help us seeing the amount of shorthandedness in the controller’s office.”
The city’s 2025 budget was the subject of a Dec. 2 hearing before the Indiana Department of Local Government Finance, the agency responsible for ensuring property tax assessment and local government budgeting are carried out in accordance with Indiana law.
A group of taxpayers, led by Lawrence Township GOP Chair Matt Huckleby, requested the hearing. They accuse the administration of irresponsible budgeting, withholding financial documents and failing to provide timely notice for a public hearing on the 2025 budget, which the council unanimously adopted in October despite misgivings from some councilors.
During that hearing, Russell Brown, an attorney speaking on behalf of the city, said that while “internal communication to the council could have been improved,” the administration still met all of its key budget deadlines in compliance with Indiana law.
An administration in hot water
Whitfield, a Democrat, has faced bipartisan scrutiny for her administration’s handling of city finances since she took office this year.
Cramer, the councilor, has questioned whether Humphrey Nagila, the city controller in charge of the budget, is qualified to manage the city’s finances.
Councilor Kristie Krone told the mayor in October that she should fire Nagila. Around the same time, Zach Brown, who was Whitfield’s campaign manager, resigned as chief of staff, citing “irreconcilable and substantive leadership differences regarding good governance.”
Chris Wilburn, the city’s director of public works, called out Nagila in a public meeting, accusing him of attempting to take $1.3 million from a restricted stormwater fund to “falsely balance the 2025 budget.”
Nagila did not respond to a request for a comment.
The council’s next meeting is Jan. 6.
Peter Blanchard covers local government. Reach him at 317-605-4836 or peter.blanchard@mirrorindy.org. Follow him on X @peterlblanchard.