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Coburg councilors order extensive audit of city's books.

Byline: The Register-Guard

COBURG - Citing possible accounting irregularities, the City Council has ordered a performance audit of the city's 2003-04 books, accounts and finances.

The council voted to seek the independent audit, more extensive than an annual, state-required audit, during its regular session Tuesday. At a special meeting Thursday night, councilors learned that the audit probably will cost $10,000 to $15,000. City Administrator Mike Hudson estimated that it would take six to eight weeks.

City Recorder Peggy deMontmorency, who was also the city's finance officer, was placed on paid administrative leave July 20. Hudson has declined to discuss the reason for that action, citing privacy laws regarding personnel matters. He said Friday that "some accounting irregularities were noted" at the time she was suspended from duty.

"They're blowing hot air - there have never been any accounting errors while I was in charge," deMontmorency said Friday. She has retained an attorney to fight the city's decision.

The city had a 2003-04 general fund budget of $1.7 million, plus sewer, water and other dedicated funds, Hudson said.
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Title Annotation:Government
Publication:The Register-Guard (Eugene, OR)
Date:Sep 25, 2004
Words:178
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