Closing out what has been nearly a year-long process for the City of Hoover, the forensic audit firm Kroll Inc. has returned answers to almost 100 questions submitted last December. Close to 13 pages of answers were posted on the City's website, along with a press release late last week.
"Kroll, LLC has completed the review of the more than 100 questions submitted by Hoover residents, and as the city continues to operate with complete transparency, it is posting the full set of questions and answers on the city's website," the release stated.
It's unclear by what standard an audit that started in April 2024 but not publicly acknowledged or disclosed by the mayor or council during a regular meeting until August 2024 could be seen as operating "with complete transparency."
1819 News broke the news of the audit on June 5, after Councilwoman Khristi Driver testified about the covert undertaking during an unrelated Certificate of Need hearing. On June 12, a public records request was submitted for documents related to Kroll and the audit. No responsive documents were produced, and it took another two months for the mayor to give a public statement confirming the audit.
"This is a voluminous document, and many of the questions are either already answered in the report the city released last year or are beyond the scope of Kroll's engagement with Hoover," the City of Hoover explained in their release.
This raises a question posed by resident and city council candidate Robin Schultz when the City voted to approve an additional $10,000 payment for the response: Wouldn't it have been more time-efficient and cost-effective to accept Kroll staff's offer to hold a town hall-style meeting?
The answers further confirm what 1819 News previously reported: When Hoover City Council president John Lyda stated, "Kroll has not been paid," before the council voted to pay the $236,152 in November 2024, Kroll had, in fact, been paid $14,586.48 in May 2024.
According to a statement by Hoover City attorney Phillip Corley in an email to Schultz, Corley's firm, Wallace Jordan, paid $14,586.48 on behalf of the City without reimbursement as "a courtesy to a valued client" so that the City would not have to "put it on the agenda," for a public meeting.
The report attempts to clarify the council's role in hiring the audit firm, saying Kroll understood that "the council authorized Wallace Jordan to retain Kroll," a decision made via email.
In that email, Lyda told the other council, "The cost is estimated to be between $145k and $177k and is expected to take between 60 and 90 days."
As stated in the Kroll answers, the actual costs were over $250,000 and were completed on August 24, 137 days after the email.
When it was finally brought up for a public vote, one that was tabled out of a desire by several members of the Council for Kroll to come do a townhall, "Resolution Number 8314-24 - A Resolution Amending The Budget For The Fiscal Year Ending September 30, 2024, For Payment To Kroll Associates, Inc. For Professional Services Rendered For Forensic Review Services," on November 5, the cost was cited as $236,152.
At the Nov. 18, 2024, Hoover City Council meeting, the City of Hoover brought back the resolution to pay Kroll Associates, and it passed.
The report also highlights a concern raised during prior council meetings that city council members made financial decisions, including entering into contracts and offering economic incentives based on erroneous information. Kroll was unable to say how often this has occurred in recent years.
The complete timeline of the financial audit provides a very different picture than that of the "transparency" the City has repeatedly cited.
Apryl Marie Fogel is a Birmingham resident who frequently appears on and guest hosts radio programs around the state. She can be reached at [email protected] or on X and Facebook at @aprylmarie.
Don't miss out! Subscribe to our newsletter and get our top stories every weekday morning.
