Wednesday, April 15

Martinsville city council releases forensic audit into city finances, report finds questionable business expenses


MARTINSVILLE, Va. – Martinsville City Council on Tuesday voted to release a long-awaited forensic audit examining the city’s finances during the tenure of former City Manager Aretha Ferrell-Benavides.

The 40-page report, conducted by third-party firm Brown Edwards, details more than $20,000 in taxpayer funds that auditors were not able to determine the business purpose of.

According to the report, more than $15,000 in expenses were charged to a city-issued credit card assigned to Ferrell-Benavides. Auditors found the card appeared to violate multiple city purchasing policies and limits, particularly for lodging, meals and travel.

City Manager Rob Fincher said the city is already taking steps to prevent similar issues in the future.

“These improvements include strengthening policies, multilayered approval processes, clearer oversight mechanics, and reinstatement or creation of procedures designed to prevent waste, fraud and abuse,” Fincher said.

Councilman Julian Mei said the audit provides needed clarity in an ongoing legal and political controversy surrounding the former city manager.

“You’re going to find a great deal of expenses that don’t have paper trails and receipts and a not very clearly defined business purpose for the city, if any at all,” Mei said.

The audit also found that Martinsville’s Economic Development Authority increased Ferrell-Benavides’ department’s budget on multiple occasions without city council’s approval. The report found that Ferrell-Benavides’ budget far outpaced budgets in similar cities by hundreds of thousands of dollars.

Residents say the report’s release is a step toward transparency after months of uncertainty.

“I’m really looking forward to reading it. It’s been a long time in the works,” said Martinsville resident Patti Covington, who has attended multiple council meetings during the investigation.

“Because of the lack of transparency, there’s been a lot of speculation and a lot of misinformation propagated in the community,” she said.

City Council also approved the future release of a separate workplace investigation into Ferrell-Benavides, which is expected to be discussed at the next council meeting.

You can read the full financial audit here:

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